Mobile Applications in Financial Services:The Concepts, Methods, Issues and Future Conceptual Products that make aSignificant Impact in SecurityInterview with Matthew WilcoxVice-President of Interactive ServicesZions BancorporationThe impact mobile applications will have on Financial Services companies is not yet clearly defined.As mobile increasingly becomes an ever more essential part of the way customers conduct theirbusiness, players in the financial services industry need to make sure they do not lag behind in theirtechnologies. Finance IQ interviewed Matthew Wilcox, Vice-President of Interactive Services atZions Bancorporation on the state of these technologies today, and going forward where heforesees mobile taking Financial Services companies in the future.Finance IQ: Can you address the concepts, methods, and issues for mobile applications in theFinancial Services Industry?Matthew Wilcox: There are numerous mobile application concepts that range from security to m-commercewithin the Financial Services industry. The toughest part of managing a mobile product is navigatingthrough all the hype to get to the small nuggets of material that are relevant to your business.If method is a new way of defining mobile strategy then the answer is it is a no-win scenario. FinancialInstitutions that are on the bleeding edge are investing in technology that has a limited shelf life, given therapid advances in mobile technology and the constant demand from mobile bankers to have the latest andgreatest. Close followers seem to be making similar mistakes as those on the bleeding edge, due to thetime and complexity involved in bringing up new mobile technologies - and the laggards in this space won’tneed to worry about mobile since they will not have any customers left.Addressing concept and method should provide you with a solid taste of the issues the Financial Servicesindustry faces in regards to mobile, and all of this happens before you get to security and ROI.Finance IQ: What kind of impact have mobile applications had on the financial market?Matthew Wilcox: At this point in the evolution of the Financial Services mobile application we are not at apoint where the impact of mobile applications on the financial market is clearly defined. I think everyoneagrees that this space is going somewhere, but whether or not mobile lives up to all the hype as the nextstep in commerce within the U.S. has yet to be seen. Depending on where mobile lands in the next fewyears will give us a better understating of the kind of impact mobile applications will have on the financialmarket. However, I predict mobile will overcome online banking in terms of usage and will also be seen asa fully-fledged marketing channel.
Finance IQ: What kind of impact have mobile applications had on your business?Matthew Wilcox: Currently mobile applications have been seen as an investment in our future. We havehad to invest as part of our overall online/mobile strategy. It is important for us to meet consumerexpectations for service delivery set by larger financial institutions such as Citibank, Chase, Wells Fargo andBank of America. In the near future we expect mobile to have a much more positive and profound impacton our business especially when you look the potential that m-commerce presents, which is why it is socritical for us to continue to gain experience in this space.Finance IQ: What are some conceptual products that make a significant impact in security?Matthew Wilcox: Products currently exist that have an impact on security and risk, such as Mobile RDC andP2P Transfers. However additional products, such as the mobile wallet, are in the conceptual phase andwill have as dramatic an impact on security. In addition, the mobile malware (along with phishing andspoofing techniques) are in their infancy and many of the tools needed to combat these threats have yet tobe developed.Finance IQ: Where do you see this technology taking the Financial Services Industry in the future?Matthew Wilcox: In the future, mobile will most definitely replace online banking, but more importantlymobile will change the way consumers interface with their Financial Institutions. In a world wheremanaging finances is a monthly, weekly or daily event, mobile will most definitely push more customers andsmall business owners towards real-time financial management. Even more intriguing is the mobile wallet,which in theory will consolidate the consumer facing process of commerce down to a single application on amobile device.Matthew Wilcox is a speaker at the upcoming IQPC Financial Technology Innovation Forum, October17 to 19, 2011 in New York City. For more information or to register, visitwww.financialtechforum.com or email email@example.com.