Mobile Banking Growth

Mobile banking is on the rise. By the end of 2010, the number of mobile banking consumers is anticipated to double in size compared to statistics from 2009 (10 million to 20 million), and will reach over 53 million in 2013.

A new report from TowerGroup, examined how financial institutions have benefited from implementing mobile banking services, and presented expectations for consumer trends in mobile banking for the coming years. Some of the key findings include:

• Mobile banking adoption has exceeded initial expectations by over 100 percent for all banks surveyed, with many witnessing over 10 percent of their online banking customers taking up the mobile channel within the first year.
• Financial institutions that have implemented mobile banking services can expect to see a 20-point Increase in client retention.
• Up to 70 percent reductions in voice response unit (call center) usage by mobile users. These calls average four dollars per call.
• Mobile banking services are proving to reduce fraud by an estimated 10 to 15 percent, and improve fraud detection by up to 25 percent.
• 1-2 percent of new customer acquisition being driven by mobile offerings.
Other findings and responses demonstrating mobile banking’s value in keeping banks competitive with the rest of today’s market include:
• Mobile banking customers exhibit the most valuable traits in FI customers—high balances, longer tenure with an institution, and enrollment in more FI offerings.
• One institution reported an overall lift in brand perception among those using mobile. This impression was described as “critical” in maintaining low churn rates among customers.

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