Kiwibank customers will soon be able to transfer funds, pay bills and check account balances on their mobile phones.
The bank launched its pocket-sized technology yesterday as nearly 1000 of its customers started a pilot programme that is expected to run for about three weeks before it is available to
all its customers.
"You can do all the things you can do on the internet, on your mobile phone," said Kiwibank chief executive Sam Knowles.
"If you can decide you want to send some money to the person standing beside you, that's what the technology can do."
Mobile banking services already exist, such as ASB's FastNet Mobile, but Kiwibank says its service is unique.
Rather than using an interface similar to an internet browser, the mobile phone downloads a Java applet that enhances the functionality of the service.
Users can access their accounts, pay bills and transfer money to any account, provided they have the relevant details.
The service has a number of safety features including the same encryption technology as internet banking, a password prompt and a time-out function after five minutes of no activity.
Customers can also suspend the service via the internet at any time.
The service is compatible with between 25 per cent and 40 per cent of mobile phones, a proportion that will increase as technology improves and phone prices fall.
The service will be free for at least the first six months, with the only costs being the data transfers at between 2c and 5c per transmission.
