Banking while on the go

A revolution is underway in the world of electronic banking. Photo / Martin Sykes

Internet banking could become old hat as consumers now opt to use their mobile phones.

Uptake of Kiwibank's mobile banking has grown 600 per cent in its first year, says spokesman Bruce Thompson. "This is in line with global trends, with the tipping point being the launch of the iPhone."

Vodafone spokesman Paul Brislen says with iPhone's success in New Zealand, "we're seeing a huge increase in demand for mobile data".

National Bank's iBank application for banking from the mobile is number one in the Free Finance category on the New Zealand iTunes store. The bank's spokeswoman Virginia Stracey-Clitherow says with recent expansion of New Zealand's 3G network, "we're seeing around 70 new applications a week".

Vodafone has 500,000 customers using 3G. New Zealand is the only country in the OECD to have two 3G networks covering 97 per cent of the population, which Brislen says makes us an ideal test bed for new applications like banking.

Leading the way with the new technology is West Aucklander Adam Clark, who has moved his family and company M-Com to Atlanta in the USA, where he has sold his mobile banking technology to five of the world's top 50 banks - including some that trade in New Zealand.

ANZ and National are seeing year-on-year double digit growth in mobile banking uptake, with a 95 per cent growth in new registrations in the last year. Balance enquiries are the most frequent transactions. They have increased 35 per cent from August last year, and 98 per cent from 2007.

Bruce Thompson says Kiwibank customer feedback shows people value being able to transfer money at a supermarket or airport when they've forgotten to do it at home and would be in a fix otherwise. Or making a credit card payment while they're on the move. "It's the convenience, and surprisingly, we've found a lot of use it in the home despite having a PC in the next room. Having your mobile means you don't have to get out of the chair if you don't want to."

ASB's internet banking manager, Anna Curzon, says the bank has a high penetration of customers using mobile banking and this increases leading up to Christmas when "people might be on their yacht in the Bay of Islands and need to pay bills ". She says it will be important for Generation Y, who are "very much linked to their mobiles".

* Queues a thing of the past

Services on offer

ANZ and National Bank users can get balances and statements, transfer money between their accounts and make one-off payments to any New Zealand bank accounts.

In addition to these services, ASB's mobile banking lets users make bill payments, and Kiwibank's lets users pay their Kiwibank credit card.

Westpac's offering only lets customers get account balances but there are plans to extend it so they can transfer funds between their accounts.

Fees and costs

ANZ: $2 a month.

National: 25 cents per text and 25 cent fee for one-off payments.

ASB and Kiwibank: Access is free but normal transaction fees may apply.

Westpac: Free.