Understanding the Mobile Banking Consumer
by Jim Marous
In order to unlock the vast potential of mobile banking, banks and credit unions must better understand mobile banking preferences of current users while alleviating the fears and lack of understanding of non-users. Broadly speaking, while convenience is the primary benefit cited by mobile banking customers, security fears remain the number one barrier to mobile banking growth.
As opposed to a ‘one-size-fits-all’ approach, financial institutions should consider segmenting the mobile banking universe for improved resource allocation and to optimize customer acquisition, utilization, retention and differentiation.
Mobile devices, including smartphones and tablets continue to transform the way consumers bank, budget, make payments and shop. In fact, having a mobile banking offering is now considered ‘table stakes’ to consumers when selecting a financial institution. According to the 2013 Federal Reserve Consumers and Mobile Financial Services Report:
- 87% of the U.S. adult population has a mobile phone
- 52% of the mobile phones are smartphones (internet-enabled)
- 87% of smartphone users access the internet regularly (in the past week)
- 28% of mobile phone users have used mobile banking over past 12 months
- 48% of smartphone users have used mobile banking in past 12 months
