I’ve spent the last few weeks reviewing retail banking products launched within the past 12 months, working to identify the key product trends that have emerged.  I’ve selected seven trends to focus on – from educational web sites to transparency to credit– and noted what the best examples look like (more on this later).  Yet, there is one trend I left on the cutting room floor: mobile banking.  Instead, I’m exploring it here in the blogosphere in hopes that someone will let me know if I should create trend number 8.

Sure, everyone keeps saying that mobile banking is going to be huge.  In fact, just this week American Banker told us that 2009 marked a turning point for mobile banking and that 2010 will be the year when mobile banking gains real acceptance.  However, many of the executives I speak with still aren’t sure how much to invest in mobile banking, and neither am I. So, when I finally upgraded my ancient cell phone to a smart phone, I decided to see what all the hubbub was about:

The Good: It’s my first day with my new phone, and I’m running errands.  Imagine my excitement when I pay my monthly credit card bill…while waiting in line!  Mobile banking really does offer unprecedented access and convenience.

The Bad: Many customers aren’t ready (or don’t have the technology) for mobile banking.  I’m paying my sister back for Christmas gifts, and I think to myself, “Can I use Obopay (P2P mobile phone payments) instead of a check?”  Before I got carried away and turned my sister into a research experiment, I realized, while I might find it fun to try out mobile payments – she’d much rather go to an ATM and deposit her check.  For her, mobile payments are something new she has to spend time learning about.

The Ugly: As nice as the convenience of mobile banking is, how necessary is it?  And more importantly, will banks really benefit from the investments they are making?  Granted, I was thrilled when I paid my credit card bill via my phone, but when I couldn’t check my account balances for my savings account through mobile banking, I shrugged and waited 30 minutes until I could check them from home.  Maybe other customers will be willing to switch for the convenience of mobile banking, but I’m not…yet.