They seem like ideal uses for your mobile phone or portable device - checking your bank account, paying your bills, keeping up with the stock market and even trading a few shares. Being kept constantly up-to-date, as well as having the ability to act while on the move, may not suit everyone. However, for those with ample funds and investments, or for the less affluent wanting constant reassurance, wireless access to financial services is a clear advantage.

The problem is that, up to this point, the potential is greater than the reality. But with the advent of 3G mobile technology, it may not be too long before your mobile device becomes a banking, trading and payments tool, as well as a communications aid.

These days, the talk is already about integrating the mobile channel into the full range of channels and services provided by banks, brokers and financial service companies. People will be able to remain in touch with their financial affairs, receiving tailored alerts on account balances and share prices.

For banks, this offers an opportunity to provide wealthy clients with tempting new services, says Jacob Marc Goldman, head of sales and marketing for banking and finance at Ericsson, the Swedish mobile phone company. But mobile offerings will not be the whole story. "We don't think there will be such a thing as a wireless investor," says Robert Sofman, senior vice-president of global wireless at Charles Schwab, the US broking house.

"It will not be the only channel. It will be part of an integrated channel concept-people want to be able to access services when, where and how they want," he says.

As yet, Schwab's wireless service, PocketBroker, accounts for only a small proportion of overall trades. But as the technology improves and more mobile devices come on to the market, Mr Sofman expects a big jump in the volume of trading on-the-move.

Once devices can be "always on", Mr Sofman expects applications to multiply well beyond what is currently possible. "There will be a whole host of new services we can't yet envision," he says. As people switch funds between accounts and pay bills, for example, they could be updated on the overall state of their finances. Thus, the consequences of each action would become immediately apparent.

Datamonitor, the UK-based market researcher, forecasts that the number of Wap-enabled mobile banking customers in Europe will exceed 16m by 2004 compared with some 1.5m this year.

In a report called mBanking in Europe 2000, it says surveys show that nearly a third of mobile users see banking as the type of service they would most like to access from their phones. With the advent of 3G, the service will become a more practical option.

At the moment, the Nordic countries, with their high mobile and internet penetration rates, lead the mobile banking market. But Datamonitor expects nearly 75 per cent of European m-banking to take place in the UK, Germany, France, Italy and Spain by 2004.

Some banks, such as Barclays in the UK and MeritaNordbanken in the Nordic region, have offered simple versions of m-banking for several years. Others are now weighing up the opportunities or dipping their toes into the water.

But they should not wait too long, says Arthur Andersen, the business consultancy. Banks and financial groups that do not have a sizeable m-commerce presence need not worry too much. "However, those who find themselves in the same predicament 12 months from now are likely to encounter difficulties retaining and acquiring profitable new customers."

The comment was made in a study called mCommerce: more hype than substance? The title is indicative of the scepticism surrounding m-commerce's prospects in view of the unimpressive performance of Wap phones to date.

But Nigel Moden, of Andersen's consulting practice, sees strong potential in the mobile financial sector. "The mobile channel has a better chance than the PC-based channel of making money," he says. "If banks can successfully integrate CRM (customer relationship management) and mobile, then it has to be profitable."

Banks have spent heavily on CRM systems and are in a unique position to understand the needs and wishes of their customers. The localised and personalised nature of mobile devices should thus offer them a unique opportunity. "The push factor-proactively helping consumers to manage their finances more effectively as well as offering new products and services at the most opportune moment-is the single most defining element of a personalised mobile service," Andersen says in its study.

However, integrating mobile services is a challenge for established banks, whose various branch, PC-based, ATM, telephone and other services generally use different IT systems. Mobile services should not be merely an "add on" feature, says Mr Moden. They have to extend right back into the organisation.

Which banks have shown themselves most willing to take on this challenge? As well as Barclays and MeritaNordbanken, those showing most energy on the mobile front include Woolwich of the UK (recently bought by Barclays), SEB of Sweden, Credit Commercial de France, Deutsche Bank, Italy's Sanpaolo IMI and Expandia Bank of the Czech Republic.

Another problem for banks is knowing how far to go it alone and how far to ally with profits-hungry telecoms operators, equipment manufacturers and content providers in the complex mobile market. Another vital issue is security, although impending advances in Wap technology are expected to ease many misgivings. Two Finnish companies, Leonia Bank and eQ Online, the online stockbroker, are singled out by Datamonitor as having a particularly strong commitment to security. Both have partnerships with Sonera SmartTrust, a mobile and internet security specialist, also from Finland.

Another vital essential cited by Datamonitor include: the need for m-banking services to be independent of network operators; the importance of quality as opposed to simply being a "first mover"; robust systems that guard against crashes; a selective approach to services offered via mobile; and a strong commitment from top management to ensure enough time and money is provided.

All that may seem a tall order for banks which are already big IT spenders. IDC, the US market research company, forecasts that banks' investments in mobile technology and systems in Europe will rise from nearly $45m this year to more than $340m in 2003.

Despite the tribulations of Wap, as new standards are developed and the technology is enhanced, IDC expects consumers should take to m-commerce and m-banking more readily. All that is needed is for banks and financial houses to pursue it more energetically.