1. Mobile Banking in Australia
M-banking involves conducting account balance and transaction history inquiries, funds transfers, bill
payments, stock trades, portfolio management, as well as insurance ordering, via a mobile device. It
provides value for consumers, above other banking channels, through ubiquitous access, time
convenience, and mobility. Despite its many advantages, the use of mobile phones in banking services is
still in its infancy and Internet banking retains its position as the leading channel in electronic banking.
According to Banking Media Review Report (May 2009) 1, about 94 per cent of Australians under 40 have
a mobile phone. Mobile banking in Australia is increasing in popularity with 16 per cent of customers
with mobile internet capability as active users, up from a mere 9 per cent in 2007. Mobile banking also
has the potential to help banks retain existing customers by providing another component to the overall
customer service proposition. A KPMG Survey (Aug 2010) 2 conducted in 22 countries with 5627
consumers, came up with following findings –
 Forty-three percent of respondents in Asia Pacific (ASPAC) say they make mobile banking
transactions at least once a month, compared to 30 percent globally. In Australia, which had 301
respondents to the survey, 19 percent of mobile phone owners use their phone for banking
monthly.
 One reason for the result in Australia may be the lack of awareness of mobile banking offerings.
Forty percent of Australian respondents did not know whether thei r bank offered mobile
banking compared to only 10 percent in ASPAC and 24 percent globally.
 Twenty one percent of Australians are comfortable with mobile banking compared to 34
percent globally. Furthermore, 70 percent of Australians have never done any banking on a
mobile device compared with 55 percent globally.
 Australians have not yet made the shift to conducting investment transactions over their mobile
phones with eight percent of respondents having done so within the last six months, and five
percent in the last seven to 12 months. Eighty-seven percent had never made an investment
transaction, such as selling a stock or bond, over their mobile compared with 71 percent
globally.
 Mobile phone users have concerns over security and privacy with 59 percent of our Australian
respondents sharing this concern
The survey also concluded that Mobile banking offers a real source of competitive advantage to
Australia banks. Banks have an opportunity to generate new business, attract or retain customers,
control costs, and gain other advantages by deploying applications for mobile phone users .
With the growing market, the banks in Australia have risen up to the challenge. An Australian
Information Industry Association report 3, states that –
 CBA and MasterCard have led the growth of the Australian contactless payments market
with over 5 million PayPass cards in circulation today. CBA also recently launched native
iPhone and iPad mobile banking applications with Android, Windows and NFC solutions on
the way.
 NAB has had native mobile apps for the iPad, iPhone and Android for over 12 months and is
now waiting to see if the Windows Phone 7 gains enough support for native app. NAB has
also publicly stated that they are investigating the use of biometrics for mobile
authentication and are considering integrating social networks with online banking, for
more integrated customer service
1
http://www.bankingreview.com.au/2009/05/what%E2%80%99s -going-on-with-mobile-banking.html
2
http://www.kpmg.com/au/en/issuesandinsights/articlespublications/press-releases/pages/press-release-mobile-
banking-12-aug-10.aspx
3
http://www.aiia.com.au/resource/dynamic/blogs/20110809_035545_28847.pdf

2.  ANZ has also been at the forefront of mobile baking with its goMoney for the iPhone.
GoMoney version 2, to be released soon, will include nati ve app BPay payments and the
ANZ’s goMoney for Androoid is under development
 St George and BankSA customers already have access to part-native, part-web apps for
iPhone, Android, BlackBerry and Windows Phone 7.
Let’s have a look on offerings of each bank
1. Commonwealth Bank – CBA is presently providing 4 products to its customers –
a. The Commbank app – Available on Apple phone, Android and Windows phone, this
application provides services of everyday banking, online trade, ATM and branch
location and foreign exchange rates. For everyday banking (NetBank), the application
provides the services of checking bank balances in real time and view transactions; allow
transfers to customer’s accounts and third parties; BPAY facility to pay bills and schedule
future transactions.
Note – Online trading
and Foreign exchange
services are not
available on
Windows.
b. Commbank Katching – Claimed as revolutionary application, commbank katching allows
customers to pay anyone using the payee’s mobile number, email addresses, face book
friends, make payments by just holding the phone over PayPass contactless terminal, bill
payment, fund transfer, locating branches and ATMs.

3. Note – The app is
available only on
Apple phones.
c. NetBank for Tablet – Available on Apple and Android, this app allows viewing
transactions, fund transfer and bill payment services on tablets.
d. The Property Guide App – The app available on Apple allows customers to search for
residential properties; provides home buying guide, home loan repayment calculator;

4. contact to lender and property dealers; allows customers to take pictures of the
property and maps it to real world.
2. ANZ Bank – Following are the offerings by ANZ bank to its customers –
a. ANZ goMoney App – Available on iPhone, the app allows
the customer to access accounts with secure pin, get
transaction history and check balances, funds transfer,
pay bills, making payments by using mobile number of
payee, view performances of investment accounts
b. ANZ Mobile Banking on Android – The services for this application involves – view account
balances and transactions, transfer funds, pay bills, locate ATMs, Branches, Business Cen ters
and Night Safes.
c. TXT banking – Available for all mobiles, this application allows customers to view last 5
transactions and receive account alerts.

5. 3. NAB – NAB Internet banking is available on web enabled iPhones, iPads and Blackberries. The
bank provides its customers the services of checking account balances and transaction histories,
transfer funds, pay bills, view online trading portfolio and locate ATMs.
4. St. George Bank – The bank offers its customers services which includes checking account
information, balances, transactions; funds transfers; overseas transfers, bill payment and facility
to open a term deposit. The app is available on Android, Apple, Blackberry phones.
5. Westpack Bank – Available on Android, Apple and Blackberry phones, the bank offers its
customers with services to view balances and transactions, transfer funds, schedule and pay
bills; and find ATM, Branches and banker.
Although the banks are more or less offering the same services, however, there are some differentiators
like Commonwealth bank providing various apps to its customers including contactless payments,
property guide. ANZ bank is providing a basic facility of mobile texting and transaction viewing on non -
Smart phones. As per AIIA report 4, Rod Farmer, Director of Research and Strategy for Mobile experience
believes the winner in Australian Mobile Payments space would be the service provider who can provide
simplest direct to consumer mobile payments service. However some Analysts cast doubts whether
Australian banks should invest in mobile banking applications as in current market, banks would find it
hard to make money as most of the applications are free of charge. The banks which provide new and
innovative banking apps to its customers will be in good position of grabbing market share from other
players. These apps should be bundled with mobile network offerings in Australia with payment service
providers. Not only new app offerings, banks need to educate customers on the security aspect of using
mobile banking, benefits of using the services. The banks would be targeting the new generation for
these apps who find it easier and convenient to work with these apps.
Mobile
Service
providers
Mobile Apps
Payment
Service Banks
Providers
Educate Customers on
 mobi le banking usage
 Benefits
 Securi ty
 a nd Build trust
Customers
- Apoorv Agrawal
Business Analyst
4
http://www.aiia.com.au/resource/dynamic/blogs/20110809_035545_28847.pdf