A recent online survey of more than 2,000 respondents by YouGov Plc. and Antenna Software, Inc., showed that more than one in three US consumers with mobile phones, smartphones and tablets currently use mobile banking. This presents both a major growth opportunity for retail banks to increase their customer base, as well as a chance for organizations with current mobile offerings to up their game with more advanced and “sticky” mobile apps for greater customer loyalty and competitive advantage.
Not surprisingly, the most significant barrier to widespread adoption of mobile banking are consumers’ security anxieties around sharing financial information through a mobile device, according to the poll, which showed that 66 percent of mobile internet users would not bank regularly via a mobile app or mobile website due to these concerns. Only one percent of those surveyed most often use a third-party mobile banking app that was not provided directly by their financial institution. Both responses indicate that consumer trust in the brand is critical. Financial institutions must educate consumers on the security of their services, adequately brand their offerings and communicate trust to capitalize on the growing mobile banking trend.
Overcoming security concerns and providing robust functionality, however, are well within reach for organizations currently developing and deploying a mobile banking strategy. Survey results showed that:
- Within the offerings already available in the mobile banking market, nearly half (42%) of mobile internet users who have used mobile banking in the past said their most recent experience was positive and received the functionality they needed.
- In fact, 55 percent of mobile internet users have or would like to check their balance on their mobile device, while 43 percent have used or would like to view transaction history and 36 percent use or would like to locate the nearest branch or ATM, suggesting that convenience should lay a foundation for offerings that leverage the features and built-in sensors of smartphones and tablets to simplify consumers’ lives.
US consumers’ advanced adoption of mobile banking offerings and specific functionality demonstrate the region’s relatively mature marketplace. A quick study of the top 10 US retail banks indicate that 7 out of 10 have both a mobile optimized website and a native mobile banking app available to consumers. Additionally, results of the YouGov Plc. Survey with Antenna, which also polled UK mobile internet users, found that the American market is ahead of the use of mobile banking services by 15 percent overall with 25 percent of UK mobile internet users using mobile banking. In both regions, however, consumers indicated that mobile banking offerings needed to demonstrate advanced security and practical functionality.
“While financial institutions around the world are reaching a growing number of consumers through current offerings, there is a significant opportunity for banks to develop and deploy a holistic mobile banking strategy to meet the needs of their entire customer base,” said Jim Hemmer, president and CEO of Antenna. “Building on the existing security and basic functionality available in today’s mobile apps and websites, organizations can establish a competitive advantage in the future by offering a full complement of mobile banking services that foster trust with consumers as they increasingly embrace m-commerce.”
All figures, unless otherwise stated, are from YouGov Plc.
US: All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,015 adults, 906 of whom access the internet on their mobile phone, smartphone, or tablet computer. Fieldwork was undertaken between 27th and 31st May 2011. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).
UK: All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,387 adults, 1,028 of whom access the internet on their mobile phone, smartphone, or tablet computer. Fieldwork was undertaken between 27th and 31st May 2011. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
An additional study of US mobile banking offerings looked at Bank of America Corp., J.P. Morgan Chase & Company, Citigroup, Wells Fargo & Company, HSBC North America Inc., U.S. Bancorp (USB), PNC Financial Services Group Inc. (PNC), Bank of New York Mellon Corp., Capital One Financial Corp. And TD Bank US Holding Company. The survey only looked for native applications and mobile websites based on the banks’ mobile offerings as of June 17, 2011.
Source: Antenna Software