Mobile banking to reach 900 million users by 2014

Barclaycard is preparing the launch of a series of m-banking initiatives

Uptake of mobile technology for banking services is set to hit 900 million users worldwide by 2014, according to analyst Berg Insight.

The predictions indicate a compound annual growth rate of 89 per cent from the 20 million users using mobile channels in 2008, with Asia being the fastest growing market and representing about 65 per cent of users.

Mobile technology will also play an important role in bringing financial services to people in the Middle East and Africa who do not use bank accounts, says the study, while the European and North American markets will use the technology as an extension of their existing online offering as mobile handsets become more widely used for internet access.

According to the Berg Insight report, mobile banking will attract 110 million users in Europe and 80 million users in North America by 2014.

"Mobile handsets are in an excellent position to become the primary digital channel for providers of banking and related financial services on emerging markets," said Berg Insight telecom analyst Marcus Persson.

“People who sign up for their first mobile subscription today will likely open their first bank account in the coming years and thus join the modern financial system.”

Last week, UK credit card firm Barclaycard signed a deal with mobile services provider Orange to develop mobile-based financial and payment services.