Mobile Banking increases Acceptance

A recent online survey of more than 2,000 respondents by YouGov Plc. and Antenna Software, Inc., showed that more than one in three US consumers with mobile phones, smartphones and tablets currently use mobile banking. This presents both a major growth opportunity for retail banks to increase their customer base, as well as a chance for organizations with current mobile offerings to up their game with more advanced and “sticky” mobile apps for greater customer loyalty and competitive advantage.
Not surprisingly, the most significant barriers to widespread adoption of mobile banking are consumers’ security anxieties around sharing financial information through a mobile device, according to the poll, which showed that 66 percent of mobile internet users would not bank regularly via a mobile app or mobile website due to these concerns. Only one percent of those surveyed most often use a third-party mobile banking app that was not provided directly by their financial institution. Both responses indicate that consumer trust in the brand is critical. Financial institutions must educate consumers on the security of their services, adequately brand their offerings and communicate trust to capitalize on the growing mobile banking trend.

Overcoming security concerns and providing robust functionality, however, are well within reach for organizations currently developing and deploying a mobile banking strategy. Survey results showed that:
• Within the offerings already available in the mobile banking market, nearly half (42 percent) of mobile internet users who have used mobile banking in the past said their most recent experience was positive and received the functionality they needed.
• In fact, 55 percent of mobile internet users have or would like to check their balance on their mobile device, while 43 percent have used or would like to view transaction history and 36 percent use or would like to locate the nearest branch or ATM, suggesting that convenience should lay a foundation for offerings that leverage the features and built-in sensors of smartphones and tablets to simplify consumers’ lives.

US consumers’ advanced adoption of mobile banking offerings and specific functionality demonstrate the region’s relatively mature marketplace. A quick study of the top 10 US retail banks indicate that 7 out of 10 have both a mobile optimized website and a native mobile banking app available to consumers.

“While financial institutions around the world are reaching a growing number of consumers through current offerings, there is a significant opportunity for banks to develop and deploy a holistic mobile banking strategy to meet the needs of their entire customer base,” said Jim Hemmer, president and CEO of Antenna. “Building on the existing security and basic functionality available in today’s mobile apps and websites, organizations can establish a competitive advantage in the future by offering a full complement of mobile banking services that foster trust with consumers as they increasingly embrace m-commerce.”

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