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Budgets Not Keeping Up with Mobile Banking Growth

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Despite the clearly growing importance of mobile to banks, it seems the channel is still not receiving its due in terms of budget. 45% of banks said that mobile is allotted 5% or less of current IT budgets. 17% of banks said that 26% or more of their total IT spend goes to mobile. A new report from CSC and Finextra (PDF) says that the rapid and apparently unexpected uptick in mobile banking use has led to struggles at banks’ IT departments. Because so much effort goes into simply keeping the mobile channel up and running, only 15% of respondents require their mobile banking products to be seen as innovative in the market, according to the report. The February 2014 survey received responses from 104 individuals involved in the mobile banking effort at 74 different institutions across 25 countries. Results were released yesterday. Respondents were split on how important mobile is to the banks’ core activities. 46% of the banks said mobile was central to the institution’s IT strategy. But nearly as many — 40% — said that mobile is a niche effort. 48% of banks said mobile and online teams are separate but work together 39% said mobile and online are [...]

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