Australian banks to spend USD2.38 billion on mobile and online technology in 2012

Analyst firm Ovum has forecasted that Australian Banks will increase their IT spending up to USD 2.38 billion for this year, and it will carry on increasing its spending on technologies by 3.5% year on year until 2016. This comes as the Asian-Pacific region is estimated to spend USD 23.4 billion for this year. Specifically, Australian Banks will invest in revamping their online banking technologies (USD 222 million forecast), with Westpac set to update its online banking portal this year. Research shows that customers are more likely to remain with the bank, if they are online actively on their account.

There have been several recent innovations in Australian banks, including Commonwealth Bank of Australia’s NFC-enabled iPhone app commercial release for its mobile payment and online banking last month, while others are at the trial stages of their contactless solutions. However, Australia is calling for more phones to be released with NFC capability, which would make the rollout of their mobile solutions more readily available to its consumers. For now, trials require a phone case or sticker to be attached to the phone, and as PayPal’s Australia’s managing director, Frerk-Malte Feller, says, “Frankly, there isn’t enough of a difference in customer experience whether you tap or swipe or insert the card into a reader” referring to contactless payments.

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