One of the most bullish studies to hit the market on the subject claims that there will be nearly 500 million customers worldwide for mobile financial services by 2013.

ABI Research claims that the mobile financial services category has the potential to become bigger than mobile television and mobile content when measured by subscriber base.

"[The category has the] broadest demographic appeal globally of any mobile application outside of voice and text communication," said Mark Beccue, ABI senior analyst for consumer mobility.

The ABI projection is far more bullish than ones put out last week by Juniper Research.

The number of mobile phone subscribers who use their phones for mobile banking transactions will increase to more than 150 million globally by 2011, according to Juniper (see story).

ABI arrived at the optimistic projection based on current known activities in three subcategories within mobile financial services: mobile banking, mobile domestic person-to-person payments and mobile international remittance.

Also counting in those segments are factors including the total mobile penetration, mobile Internet penetration and the number of deployments and vendors.

Mobile banking will find the best reception in the industrialized world, according to the market researcher.

However, person-to-person payments will gain ground in less prosperous regions. Penetration in rural regions, especially in Bangladesh in South Asia and parts of Africa, will help lift users in those areas from poverty.

The acceptance of mobile banking will be "driven by demand for mobile by Gen Y consumers who total over 100 million in the U.S. -- the largest demographic in the U.S.," Mr. Beccue said.

"Accelerating uptake of mobile Internet will be driven by consumers," he said. "For person-to-person payments, mobile is available in developing countries where there is little other infrastructure such as physical banking institutions."

Banking on mobile
There is no doubt, though, that banks are pushing for mobile banking and financial services.

Take Bank of America. The Charlotte, NC-based bank launched in mobile banking services in May 2007. Thirteen months later, the bank had 1 million mobile banking customers. Its latest mobile banking customer base is estimated at 1.5 million.

Wells Fargo/Wachovia, Citibank and SunTrust have also stepped up their mobile banking initiatives.

JP Morgan Chase even ran a $70 million ad campaign last year using television and other media to drive awareness of its mobile banking service.

A key factor in mobile financial service's growing acceptance is that consumers may be overcoming their fears of banking online and on mobile as well.

"There is a logical draft benefit in those who already trust online banking to trust mobile Internet banking," Mr. Beccue said.

"There is certainly plenty of distrust though still," he said. "One study I saw said most consumers would prefer to have their bank offer the mobile financial service instead of a mobile network operator-branded service in countries where they have a large percentage of banked consumers.

"For the unbanked, it will depend on how much they trust their mobile network operator who will be the primary interface for the consumer for these services."

ABI's findings were published in its Mobile Banking and Funds Transfer study.

Interestingly, Mr. Beccue confirms in his study that the mobile financial services category is largely recession-proof.

With a few exceptions, he said, it's not about consumers spending their money, but managing it through another more convenient channel.

The only major impediment other than security issues and phone capabilities is the likely consolidation among financial institutions and banks in this economic slump.

"Otherwise, this is a win-win," Mr. Beccue said. "Consumers gain convenience and new services, [and] banks gain cost savings, stickiness and potential new customers."

That said, banks need to continue evangelizing to get more consumers to switch to mobile banking.

"Education, ongoing education," Mr. Beccue said. "They must use their considerable marketing engines to promote and educate the benefits of mobile banking."