ASB launches cellphone service

By PETER GRIFFIN technology writer

ASB Bank customers will soon be able to use their mobile phones to do their banking - or some of it.

But there is a catch: at first, only converts to Telecom's new CDMA network will be able to use it.

From the end of this month, ASB customers will be able to check account balances, see mini-statements of their last 10 transactions and transfer money between accounts, all displayed on their mobile phone screens.

CDMA, which stands for "code division multiple access", is a high-speed mobile phone network.

To use the network, customers must buy special handsets which cost around $350-$500 and boast bigger screens than conventional mobile phones.

Although customers can use the service only for a limited range of transactions, ASB spokeswoman Barbara Chapman said simple balance inquiries accounted for 71 per cent of the bank's one million internet transactions each month.

"You can look to see if a cheque has cleared or the rent has been paid," said Barbara Chapman. "Look at the youth market with something like text messaging - this is just an extension of that."

ASB says there will be no extra charge for mobile banking and no fee for balances and mini-statements, but a charge will apply for transferring money between accounts. Users will pay Telecom 35 cents for each call.

On the issue of security, the ASB says calls will be encrypted by one of 4.4 trillion codes. Users must also enter an access code and password.

Telecom Mobile's wireless data group manager, Nic Holdgate, could not say how many CDMA handsets had been sold since they appeared on the market early last month.

But he said the 10,000 corporate customers and Telecom employees already upgraded to CDMA could use the service.

ASB customers will not yet be able to use the phone banking service overseas.

CDMA users can make voice calls and send text messages over the networks in Australia, Canada and the US, but advanced data services are not so far available.

ASB wants to develop the service for other mobile phone systems, including GPRS (general packet radio services) handsets, when Vodafone begins offering them to customers.

Other main banks say they are considering similar services.