Executive Summary (This is a document excerpt)

Five months after Apple launched the iPhone in the US, the iPhone has gone on sale in Europe. Now banks are asking: "How will it affect mobile banking?" We think that the iPhone is an important evolutionary step for mobile banking. On the one hand, it raises the bar on user experience and will spark mobile Internet adoption. On the other hand, it adds complexity by introducing an additional low-cost alternative for banks to offer transactional mobile banking. In the short run, eBusiness executives should optimize their online banking services for the iPhone but reconsider further investments in current mobile banking services. In the long run, they should prepare for new — mobile — usage scenarios for compelling mobile finance applications.

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