Mobile answers the call: creative apps are boosting innovation and generating surprising new opportunities for mobile banking. Here's a look ahead.

• Author: Deb Stewart

WHERE ARE TWO STRIKING FACTS ABOUT THE MOBILE BANKING MARKET: First, it is hugely popular; and second, We customers are astonishingly diverse.

With respect to popularity: Adoption of mobile banking has been more rapid than it was for online banking. According to Pew Research, it took 13 years, from 2000 to 2013, for online banking usage to grow from 18 percent to 61 percent. Yet, mobile banking usage has grown from 18 percent to 35 percent in just over two years.

With respect to diversity: The popularity of mobile banking extends beyond yo wig, affluent, tech-savvy customers. Survey results from Pew Research in July 2013 show that both men and women in equal percentages are using their cell phones for banking. Usage is relatively consistent across race/ethnicity as well as education attainment and household income. In other words, this is a product that appeals to all customers.

So, with all of this popularity and diversity, what are the considerations that marketers need to keep in mind when offering mobile banking? How are they using the product today, and what are their expectations about how they want to be using it in six or 12 months?

Today's offerings

"Today, it is reasonable to assume that every mobile banking app, regardless of the size of the bank, will offer the most basic of functionalities, including the ability to view account balances, check recent transaction history, transfer funds (between accounts at the same bank) and locate nearby branches and ATMs," says Teresa Epperson, managing director of AlixPartners. "Almost basic at this point are bill-pay capabilities, person-to-person payments and mobile check deposit. The expectations for this channel will continue to grow as customers become increasingly mobile. Many of these will be younger consumers who are likely to skip online offerings, such as bill pay, and move directly to mobile. They are not interested in using their computer to manage their money in a Quicken-like manner -- their just-in-time liquidity-management style lends itself well to features such as photo bill pay and expanded card servicing options. This is a new type of offering for bankers -- one that will need to evolve and change constantly."

This rapid change has resulted in differences in product development prioritization and some very different approaches to important product features. Three areas of particular divergence in the current offering are:

* Managing mobile deposit limits.

* Charging or not charging.

* Finding the right relationship between online and mobile.

Managing mobile deposit limits

There are radical differences in approach to deposit limits across institutions. Time limits vary from daily to monthly. Other limits are by item -- or a combination of item and time limits. "These widely varying approaches reflect how each organization is managing risk -- it reflects their culture," notes Epperson. "This feature has the greatest impact on business owners or on more affluent clients. Charles Schwab and some banks including BBVA Compass, Houston, customize limits based on the client relationship. This feature will continue to be monitored and adjusted in...