The number of U.S. adults who own mobile phones dropped markedly in 2010, falling to 74%, down from 85% in 2009. However, smartphone sales bucked the trend. About 20% of all U.S. adults now tote a smartphone, as do 27% of mobile phone owners. With about one in five consumers now using mobile banking, financial institutions must understand the mobile marketplace and deploy mobile‐banking platforms to serve customers who increasingly are choosing banks based on their mobile‐banking capabilities. Because only 18 of the top 40 U.S. banks now offer mobile banking, the time has come for financial institutions (FIs) to develop, improve upon, and deploy effective mobile‐banking strategies and solutions. Javelin’s “triple play” approach provides actionable steps that financial institutions can follow to increase mobile‐banking adoption and capitalize on the growing smartphone, “mobile‐banking friendly” segment.

Javelin analyzes the demographics and behaviors of mobile‐banking customers, mobile banking and smartphone adoption rates, mobile device offerings, carrier and model penetration, along with survey data that describes what consumers want and how they bank via mobile device. This report identifies key consumer segments to target, the most effective approach for reaching customers, and the features

Primary Questions:

• What does the mobile marketplace look like?
• What are the current adoption rates for mobile penetration, mobile banking, and both smartphone and feature phones?
• How does security factor into mobile banking?
• What do typical mobile bankers look like, and how do they behave?
• What is the best method to reach consumers on their mobile devices?
• How do different smartphones and their owners compare?
• Which smartphones are most used for mobile banking?
• Which carriers have the largest market share?
• What features and mobile capabilities do consumers desire?
• How should FIs prepare for the future of mobile banking?

I don't have access to the report... but I would venture a guess and say that some of the data presented in this report may help you decide as a Financial Institution how much weight (as part of your mobile strategy) you place on SMS Banking (or Text Banking) versus mobile browser and native applications.

I have more thoughts on this and I will expand on this any more topics related to mobile financial services over at the Mobile Strategy Blog (http://m-strat.org).

Be well!