MOBILE FINANCIAL APPS: CONSUMER REACTION (Aug 2017)

Banking, Budgeting, and Payments

Provider Competition

Advantages and Disadvantages

Key Finding from the Report:

Findings from the survey reveal that four in ten mobile phone owners have downloaded some type of financial app. This tends to be much more widespread among Millennials.

 

Research Description and methodology

This study examines consumer experience with mobile apps for financial products and services.  Consumer preferences and perceived benefits are also assessed.

National Internet Survey – The survey will include 982 Internet interviews with consumers age 18 or older.

Key Dates

August 2017 – Project Report available.

Strategic Objectives

  • Profile the current environment for mobile financial apps in terms of frequency of mobile banking and financial activities, the extent have downloaded apps, number downloaded, and from what types of financial institutions and organizations.
  • Assess in detail the types of mobile apps consumers have downloaded – including general banking/budgeting, saving/investing, purchases/payments, rewards, and other financial activity. Determine if apps used or not. Measure which would like to have.  Capture if downloaded from main or primary provider.
  • Examine the types of activities performed with direct connect mobile banking apps. Determine role as a banking method – primary, secondary, or emergency.
  • Assess the impact of mobile financial apps on other banking channels – encompassing aspects such as overall frequency of usage of apps, whether using other channels more, less, or the same, with using PC-based online banking more, less, or the same, and expectation than mobile apps will replace PC-based online banking.
  • Evaluate the value of innovative options for mobile apps – such as voice commands, facial recognition, digital lockbox, fingerprint verification, and click to call connection.
  • Identify advantages and disadvantages of mobile apps that should be promoted to expand adoption or increase usage? Identify reasons for nonusage that may be barriers to adoption to address.
  • Segment and target the market – in terms of behavioral, attitudinal, or demographic variables – to implement strategies and tactics to expand and increase usage of mobile financial apps.

Research Issues

  • Is there an app for that?  As usage of smartphones for mobile banking expands, usage of financial apps increases.  Consumers are responding positively to the ability to perform banking transactions and other financial activities via a mobile app. It is often described as having the branch at your fingertips.
  • Mobile financial apps can be used for anything and everything financial. Consumers can perform transactions, make bill payments, and locate branches and ATMs using an app.  There are also apps to help consumers with more difficult financial tasks such as saving, investing, and financial management. Today’s mobile apps can make the tedious and time consuming tasks such as budgeting and expense tracking easier and in some cases fun with colorful graphics and cartoon characters.  Apps provide convenience and ease for consumers and help strengthen relationships with customers by providing an element of “stickiness.”
  • Competition is extensive as both financial institutions and other organizations compete for screen space. The world of financial apps is dynamic, challenging providers to keep up with the rapid pace of developments, technology, and the sheer number and scope of mobile financial apps. This study will address these challenges as well as others examining mobile financial apps from the consumer’s perspective.