A new study claims that mobile banking is growing at a fast pace and will soon become the primary channel for banks to connect with their customers.

While the top U.S. banks have the financial and technical resources to make moves in the mobile channel, most mid-tier and small banks lack the innovation and funds needed to explore this front, according to research from TowerGroup.

"TowerGroup expects 2008 to be the tipping point for mobile banking in the United States," the report said. "Many of the largest banks have already launched mobile banking services, which are catching on with customers and generating positive business results.

"And now their mid-tier and smaller brethren are preparing to offer mobile banking, thanks to the recent activities of their primary technology providers," it said.

"The past few months have brought a flurry of mobile banking announcements from U.S. core banking vendors who are responding to growing demand from their customers and the recognition of their own powerful position in the vendor ecosystem for mobile banking and payments."

TowerGroup's research finds that core banking technology vendors have a big role to play in helping mid-tier and small institutions take advantage of this emerging channel.

Due to the increasing interest in mobile banking services, TowerGroup believes that banks should deploy mobile banking services with confidence that their core banking vendors will provide the key to start the engine of mobile banking.

Recent mobile banking announcements from such technology vendors as Fidelity Information Services, Jack Henry & Associates, Metavante and Open Solutions Inc. represent the beginning of a evolutionary strategy with regard to integrating mobile payments more deeply into the U.S. banking infrastructure, per the research.

The report also highlights that as mobile banking and payments evolve throughout the year, the associated vendor ecosystem will change drastically.

The strategies of banks may eventually call for internal development or even acquisitions of boutique suppliers that are struggling to win the confidence of financial institutions looking to push forward on the mobile delivery channel.

"Mobile banking has reached a level of maturity that warrants action in the eyes of the core banking vendors who are firing their shots over the bow with the flurry of solution announcements," the report said. "Mobile banking is important to core banking vendors from the perspectives of both existing customers and new deals.

"Their customers are chomping at the bit for mobile banking capabilities, in large part because the top banks have made competitive inroads into the smaller banks' geographic markets," it said. "Pure-play mobile banking vendors have a hard time penetrating these smaller institutions because core banking vendors play the role of technology gatekeeper."

TowerGroup believes that the core banking vendors will emerge as key players in the vendor ecosystem for mobile banking.

"In technology innovation, core banking vendors may not be trendsetters, but they are pacesetters," according to the report. "Because of their familiarity with banks' core operations, these vendors excel at seeing through the hype regarding new technology for banks and waiting to act until the market has matured to the point when innovation and profitability converge."