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Mobile-banking vendors' revenues will nearly double this year, to $26 million from $13.9 million in 2008, if the number of deployments doubles as the vendors expect, according to a report from Boston-based research firm Aite Group. For the report "Mobile Banking Vendor Evaluation–The Slightly Maturing U.S. Market" Aite evaluated questionnaires from 14 mobile-banking vendors operating in the United States completed in October and November. Clairmail Inc., Harland Financial Services Inc., mFoundy Inc. and Verisign Inc. were among the companies that participated. The report concludes vendors would experience their greatest growth this year by servicing smaller banks and credit unions. Harland and Jack Henry & Associates "will continue to capitalize on their existing roster of clients with a solution that is inexpensive and requires minimal client involvement for deployment," report author Nick Holland wrote. Text messaging is becoming a must-have feature for mobile banking "as the only viable means of reaching all banking customers, regardless of handset and technical expertise," the report says. Vendors that deploy browser-based or client application-based mobile-banking services are partnering with text-messaging providers or are building their own text-messaging features, the report says. Text messaging is a vital feature for financial institutions as a means of increasing end-user interactivity, Holland says.

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