About one in five financial institutions still do not offer mobile banking and 43% do not offer mobile payments, according to research published this fall by the Federal Reserve Bank of Boston.
The five-question “Quick Hit Mobile Financial Services Survey” (QHS) of 565 financial institutions — including 178 credit unions — found that 82% of respondents offered mobile banking. In addition, 14% of all respondents had “no plans to offer” mobile banking, the report said.
Of that 14%, all but one of those institutions had less than $500 million in assets, the FRB report authors noted.
“The recent QHS findings underscore the increasing number of FIs that are experiencing greater customer use of their mobile banking services,” they added. “Among the 405 FIs that provided retail customer usage data, only 5% of respondents have very low (i.e., ‘<5%’) customer usage rates, while 69% have customer usage rates between 5% and 35%. Notably, 13% (52 FIs) reported that more than 50% of their retail customers use their mobile banking services, and another 13% (53 FIs) reported usage in the ‘36-50%’ range.”
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