Mobile Banking Factors why consumers are resisitng the new technology Essay

Mobile Banking Factors why consumers are resisitng the new technology - Essay Example Hence, better technology will lead to quicker and more enjoyable mobile transactions. This report focuses on the customer response to mobile banking in California, US. Through one-on-one interviews with 100 young consumers (ages ranging from 15 to 25 years old) the nature of consumer resistance to mobile banking is explored and explained. This strategic report also offers a hopeful examination of the future prospects of mobile phone banking applications in California. Mobile banking represents a daring and emerging innovation with currently relatively low usage rates among American consumers. However, this segment is expected to have a high usage rates in the future with the implementation of improved features by the service providers. The first applications of mobile banking were implemented in the mid-nineties which enabled bank customers to make payments and request account balances via mobile phone as an SMS service. However, compared to Internet banking in developed countries, mobile banking adoption rates in developed and developing countries have been rather low and slow. When mobile phone banking was first launched in the US market in mid-2002, the US consumers had a lukewarm response to the new technology during that time. Only a few percentage of the customers were open to mobile phone banking. ... 9.2.1. Mobile Banking Questions 14 List of Tables 1. Introduction Mobile banking represents a daring and emerging innovation with currently relatively low usage rates among American consumers. However, this segment is expected to have a high usage rates in the future with the implementation of improved features by the service providers. The first applications of mobile banking were implemented in the mid-nineties which enabled bank customers to make payments and request account balances via mobile phone as an SMS service. However, compared to Internet banking in developed countries, mobile banking adoption rates in developed and developing countries have been rather low and slow. When mobile phone banking was first launched in the US market in mid-2002, the US consumers had a lukewarm response to the new technology during that time. Only a few percentage of the customers were open to mobile phone banking. Approximately, only 4% of US online consumers with a mobile phone use a feature of mobile banking. Another 5% of the consumers were interested, however, the remaining 72% of the customers were not interested at all. (Meyer, Thomas, 2007) 1.1. Background of the StudyMobile phone banking did not have a great beginning in the US banking market. For instance, the Wells Fargo shut down its mobile phone banking offering in 2002 give a skeptic response from the bank customers. In addition, Forrester Research found out that only 10% of American consumers indicated that they would consider mobile banking, versus the 35% or so who already bank online. The customer resistance for mobile phone banking has been persistent. A common reason for this is that the bank customers are conservative and security conscious with respect to their money. These