Still, all is not perfect in these nontraditional banking channels. In surveying 23 of the top 80 financial institutions in the country, Bezard discovered an adoption rate for these channels at average or below average rates.

He also found levels of trust among bankers for online and mobile services varied substantially. While 70% of his respondents considered online banking to be rock-solid safe, only half found e-mail a safe medium. Finally, a miniscule 5% of end users viewed mobile banking as a safe and viable method of doing business.

Despite these challenges, Bezard sees a great deal of promise in these channels.

"In the next two years, mobile bill payment, expedited bill payment and online personal finance management tools are expected to be the fastest growing electronic banking products," he said in his new report, titled Usage Trends in Online and Mobile Banking: Upping the Ante.

Bezard said he expects the number of online bill payers to nearly triple over the next 24 months to 38 percent. Despite fears of safety, the think firm analyst said, he sees similar growth on the mobile platform.

The strength of this expansions lies within individual applications. A closer analysis of the technologies powering mobile and online banking yields trends.

For instance, online bankers come in all shapes and sizes. In 2007, 37% of these individuals were enrolled in e-statements with paper turn-off. Moreover, 28% paid their bills regularly via the consolidator service, and 15% received e-bills. Finally, 12% signed up for e-mail alerts.

On the mobile front, 5% were enrolled in SMS alerts, 4% checked their balances via a mobile phone, and 1% paid a bill via mobile banking.

"Financial institutions are expecting growing adoption over the next few years of key online banking products or functionalities," said Bezard. "The share of online banking customers paying bills via mobile banking is expected to grow 185%."

Aite Group's crystal ball is likewise bullish on sister applications. Aite predicts that even among smaller institutions:

- Online bill payment will jump to 38% by 2009;

- E-mail alerts to 25%;

- E-bills to 17%;

- Mobile SMS alerts to 12%; and

- Mobile bill payment to 7%.

Despite such positive potential trends, Bezard suggested a balance will be needed when it comes to rolling out new services in the mobile and online banking arenas.

"In the coming two years, financial institutions will need to focus both on introducing new services (e.g., mobile banking) and optimizing the adoption of existing ones (e.g., online bill payment)," he concluded.

"Keeping a balance between new product development and optimizing existing product performance will likely stretch resources."

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