Mobile Banking Updates - Aug 2

Smartphone Use Soars, While Mobile Banking Adoption Stalls
"With the explosive growth of smartphone ownership, zooming upwards of 40% since 2010, and constant buzz about such hot new technologies as mobile wallets for payments, financial institutions (FIs) expected that mobile banking growth would continue to skyrocket as well. However, Javelin's data reveals that mobile banking has actually plateaued. The Javelin report, based on surveys conducted with more than 13,000 consumers, examines this surprising trend, identifies the real reasons why more consumers aren't using mobile banking, and presents the steps FIs must take if they want to engage more mobile consumers."

Time to Expand Mobile Beyond Transactions
"Technology changes at an exponential, and rapid, speed that causes many decision makers to overlook its possibilities. Yet mobile and online advances are becoming the “new normal,” so the concern now is that a credit union which lets these banking options pass may be rendered as obsolete quicker than one would think. Credit unions must first be aware, however, that mobile options extend beyond mobile banking on members’ iPhones."

Consumer awareness reigns as main factor in mobile banking: study
"Although mobile has become a vital part of financial institutions’ strategies, many banks are missing the mark by not getting the word out about their mobile options to consumers, according to a study by Mercatus. The study found that the majority of consumers surveyed knew what mobile banking was in general. However, the research found a substantially lower percentage of bank users surveyed knew if their particular bank offered mobile services."

Rosy Predictions Aside, Mobile Payments Boom Still Years off, Experts Say
"As the year progresses, predictions from a year or two ago that mobile payments would take off in 2011 or 2012 seem more and more unrealistic. Payments researchers at accounting and consulting firm KPMG think it’s going to be a few more years, and that near-field communication (NFC) systems embedded in phones ultimately will win as the preferred technology of mobile payments."

Young people choosing mobile banking
"New research shows that more and more young smartphone users in Britain and the United States are managing their finances on their phones. Popular features include checking account balances and viewing transactions, as reported on uk.reuters.com.

The consumer research was commissioned by mobile web and application specialist Antenna. It found that 40% of those who accessed the internet with a mobile phone or tablet computer in the U.S. were using banking services on their mobile devices. Only 25% did so in Britain."

Affluent class using mobiles more than Internet for banking
"Arecent survey by global consulting firm McKinsey and Co. has found that the affluent class in India, categorized as people whose household income is above '10 lakh a year, use mobile phones more than the Internet for their banking needs, even as the use of bank branches is dropping. The survey profiled 20,000 customers from 13 countries, out of which 5,000 were from India--the largest sample size. According to the Asia Personal Financial Services Survey, there was a 338% increase in mobile usage for banking needs compared with a 131% increase in Internet usage over a four-year period."