According to a new report from Celent, mobile banking will outstrip online banking in growth over the next three years. It says 35% of online bankers also will use mobile banking. Today that figure stands at less than 1%. Who will lead the way? Gen Y.That's right, 18- to 25-year-olds will take the charge and make mobile banking a mainstream technology. This isn't entirely surprising, given that today's teenagers are the quickest adopters of new Internet-based technologies. Celent thinks that new functionalities, including contactless payments, will be the draw to add to mobile banking's ranks.

Celent posits that Generation Y will gravitate toward mobile banking sooner than others because a higher percentage of them are in wireless-only households, meaning no landline phone exists in their home. Mobile financial services will affect the decisions of 40% of Gen Yers on which bank they select. Performing simple tasks such as checking balances will be paramount.

"The mobile banking end game will not be about checking balances and paying bills. It will evolve into a mobile wallet, allowing banks to generate greater electronic payment volume through the combination of electronic loyalty programs, mobile marketing, and contactless payments," says Dan Schatt, senior analyst at Celent. "While loyalty and marketing applications are still largely confined to product road maps, they will make their debut in late 2008, and by 2010 we will see the fusion of mobile banking and mobile contactless payments."

While I live solidly in Generation X territory, I know that mobile banking piques my interest. I do about 90% of my banking online. If I can have the opportunity to do some of my banking activities via my mobile phone, I'll likely sign up.