Mobile banking: coming to a cell phone near you
By Laura Bruce • Bankrate.com

Someday soon, while passing time at the airport or in the dentist's waiting room, you'll click away from the episode of "American Idol" you're watching on your cell phone and log on to your bank account to transfer funds, check your balance or pay some bills lickety-split.

Mobile banking was initially hailed as the next greatest thing in the late 1990s when personal digital assistants, or PDAs, were the rage. It didn't quite pan out, but now, nearly 10 years later, many in the banking industry are saying 2007 is the year when America will start banking by cell phone.

Cell phone technology and bandwidth have reached the point where banking transactions don't take an annoyingly long time to complete. Some banks are already offering services to customers; others are still in test phases with plans to roll out the services to all customers by year's end. While these new functions will readily be adopted by people who latched onto cell phone camera, music and video capabilities, financial institutions are hoping that those who aren't enamored with those functions will find mobile banking to be a worthwhile convenience.

Customers wanted cell phone access
Wachovia claims it's the first bank offering "on-the-go banking" to customers through Wachovia Mobile. What's available now is the first phase of the company's wireless retail banking, which enables customers to view account activity, check balances and transfer funds between accounts.

"Our customers could have accessed their account before (with a Web-enabled wireless device), but what we have done with the new service is provide an application that gives a more user-friendly experience," says Ilieva Ageenko, director of emerging applications at Wachovia. "We are device-independent and can identify the browser and customize the experience based on the browser -- Windows Mobile or BlackBerry -- the whole navigation system.

"We focused on the cell phone because customers asked us to do that. With the new service is a feedback mechanism to identify the next thing they want to do, and bill pay is at the top of that list, so we'll look for opportunities there."

Citibank spokesman Rob Julavits says Citibank will be testing its own mobile banking service in March and will be allowing customers to enroll in April, with a broad launch of the service expected before midyear. Citibank customers will be able to check account balances, transfer funds, pay bills, connect to customer service and search for the nearest Citibank financial center or ATM.

Bank of America has also announced that it will be testing mobile banking this month and rolling it out nationwide through midyear. The service will be available to customers who have Internet access through Verizon Wireless, Sprint Nextel, Cingular and T-Mobile. Among other things, customers will be able to check balances in their checking, savings, credit card, mortgage and home equity accounts; pay bills and transfer funds.