What We’re Reading: Mobile Banking, Online Banking and Trendspotters
Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom.
- To Customers, Mobile Banking Apps All Look Alike: Study
Consumers make little distinction between their experiences in leading financial services players’ mobile apps and mobile browsers, finds a survey published Thursday by Ann Arbor, Mich.-based research firm ForeSee. Based on 4,500 customer surveys, Mobile Satisfaction Index: Financial Services Edition evaluated American Express, Wells Fargo, Chase, US Bank, Bank of America, Citibank, credit unions overall, Discover, Capital One, MasterCard, Visa, Charles Schwab, Fidelity, E-Trade, Scottrade and TD Ameritrade. The firms’ satisfaction scores ranged only from 73 to 80.
- Banks Cling to iPhone as Consumers Take to Android
According to Javelin Strategy & Research’s latest consumer survey (the group polled 3,000 consumers this quarter), Google’s Android smartphones and tablets now claim 48% of the U.S mobile market, up from 34% last year. Apple’s mobile device market share is 32% this year, up from 27% last year. (RIM dropped from 25% last year to 12% this year; Windows Mobile dropped from 13% to 8%.)
- Fintech Startups – Coopetition or Competition? Business Models Are Shifting.
Should startups go after consumers/businesses directly? This is the most popular model, with most firms taking this type of approach. Examples include Square, Simple, PayPal, etc. It’s also one of the hardest models as it’s quite difficult for a newly minted organization to establish a brand and build critical mass on its own. Can startups be successful at enabling others in addition to going after their core market? This is becoming an increasingly popular model as startups seek out new streams of revenue. It’s particularly popular in the payment space as it allows for a potentially increasing stream of transactional revenue.
- We All Can Be Trendspotters
As the festive season approaches, this is the time of the year when Celent analysts reflect on what kept us busy through the year and what the future might hold for the next 12 months in our respective coverage areas. We usually publish the results of this thinking and analysis in various trends reports – from Top Trends in Banking to Top Trends in Payments to IT Spending. Intelligent Environments, a digital banking software company, was launching Interact, its new platform for “connecting money to people.” One statistic stood out and was probably unexpected to many people in the room – according to the latest research by IE and YouGov, 51% of UK consumers now see digital channels as the primary driver of their bank loyalty, even ahead of customer service.
- Are banks wasting money on mobile and online innovation?
The research jointly done by Infosys and banking association Efma found that 70% of 330 banks questioned respondents are planning to increase their spending on innovation, with the mobile and online channels seen as the most important delivery channels for innovation. It is very important for businesses to be able to identify where they can actually differentiate through technology. Even new services which are business critical, might not offer the opportunity to differentiate. Peric at Swift says an example of this is mobile banking. All banks want to offer mobile banking to consumers so they can reach every corner of the world.
- The Future of Online Banking: When Worlds Collide
Mobile banking is generally thought of as a new channel or product, yet it is actually a reiteration of an old product: online banking. These two worlds have been viewed and treated as separate platforms, but financial marketers would yield the most by combining the best of both to create a unified “product offering of the future.” So what are the building blocks of the future? There are some notable areas causing a great divide between the two worlds.
- Mobile Banking Adoption Grows
Javelin Strategy & Research’s latest report evaluates the 25 leading U.S. retail financial institutions (FIs) mobile banking offerings by comparing features, mobile access, app, Web and text banking, and mobile alerts. Mobile banking is on the rise — now used by 33% of mobile consumers, up from 24% in 2011. Of the top 25 U.S. financial institutions by deposit, about half are offering mobile person-to-person (P2P) transfers and mobile remote deposit capabilities, a figure that has more than doubled since 2011. One area of concern is that the number of consumers reporting problems accessing mobile banking services at their bank has more than tripled since 2009 from 4% to over 14% in 2012.
- Applying Developing-Market Mobile Banking Models in the Developed World
A U.S. federal report released in September found that 8.2 percent of households in the country are unbanked. That’s nearly 10 million households, and 17 million adults. Another 20.4 percent are underbanked—or 24 million households, and 51 million adults. Those numbers add up to more than a quarter of the population of the U.S. The percentage of both unbanked and underbanked has increased slightly since the last survey (conducted in 2009). Americans are also using alternative financial services more, including payday loans, check cashing, money orders, pawn shops, etc. Both increases are most likely due to the economic recession and resulting high unemployment rates.