THE MOBILE BANKING REVOLUTION (Oct 2016)

Transactions, Sales, and Service

Apps and Alerts

Impact on Other Channels

Key Finding from the SYNERGISTICS Report:

Most users still view mobile banking as a secondary or emergency banking method.

A88 Prop Graphic

Highlights of the Study

This study examines consumer experience with mobile banking.  It also assesses consumer reaction to various apps and alerts and the impact of increasing mobile banking usage on other channels.

 

National Internet Survey – 1,008 consumers age 18 or older.

Key Dates

 

October 2016 – Project Report available.

Strategic Questions

  • What types of mobile banking and financial activities are currently conducted by consumers – including accessing account information, transactions, customer service, and account opening?  Is there potential for expanding any activities?  What types of accounts are accessed by mobile phone?  How strong is potential adoption among nonusers
  • What priority do consumers assign to mobile phones as a channel for conducting banking or financial activities – primary, secondary, or emergency only?  How satisfied are users with the mobile services of their financial institutions?  To what extent has mobile activity displaced other channels – such as branch visits, online banking by PC, and ATM usage?
  • Is mobile remote deposit capture becoming a significant deposit making channel in the consumer market?  What is the potential for adoption among nonusers?  How does experience with mobile RDC drive perception of value?
  • What is the relative usage of and preference for apps or browsers when conducting mobile activities and what are the reasons for these preferences?  What types of apps have been downloaded for financial activities and which are wanted?  Would the availability of apps impact the potential adoption of mobile banking?
  • Are mobile alerts – such as for balance information or payment due dates – an important relationship tactic?  Which types of alerts do mobile banking customers currently receive and which are wanted?
  • Which features or benefits are perceived to be important and should be emphasized in marketing communications to expand adoption and increase usage of mobile banking?  What specific concerns or disadvantages are barriers to adoption among nonusers?
  • How should the consumer market be segmented and targeted – in terms of behavioral, attitudinal, or demographic variables – for implementing strategies and tactics to expand and increase usage of mobile banking?

Research Issues

  • The mobile banking revolution is under way.  The rapid adoption of smartphones and tablets is a primary factor in the rapid acceleration of mobile banking.  Financial institutions are caught up in a frenzy of activity promoting their mobile banking programs.  In the midst of all this activity, there are a number of unanswered questions and issues that need to be evaluated.
  • Consumers can perform a vast array of informational, transactional, customer service, and sales activities with their mobile devices.  It is important to assess the types of activities currently performed as well as those that they would like to do. Usage of mobile bill payment also needs to be measured. Consumers have the option of conducting mobile banking via apps or browser-based platforms.  What additional mobile apps are attractive to consumers? Is mobile RDC a valuable service? Alerts can be provided for a number of purposes. Mobile banking is growing but consumers may not be abandoning PC banking.  Mobile banking may be used in conjunction with PC banking, with mobile banking serving primarily as an emergency or secondary method.  It is important for providers to evaluate the relationship of these online channels to each other and to other channels such as branches.  Privacy and security remain important concerns in the mobile space.
  • There is no doubt that mobile banking is a major component of online banking strategies. The role it will play is still emerging.  This report will provide up-to-date information to help providers compete in the mobile banking revolution. [A88]