EMV is Here: Tips & Tricks You Need to Know

October 7, 2015
/   Insights

The EMV (Europay, MasterCard, Visa) shift went into effect on October 1, 2015 and a majority of large retailers and merchants have upgraded POS terminals to accept EMV chip cards. Despite this new mandate,...

FI Highlight: BankMobile

October 2, 2015
/   Spotlight

Financial institutions that aren’t developing and catering to the wants and needs of younger demographics are missing out on huge opportunities for growth. Luvleen Sidhu, Chief Strategy and Marketing Officer at BankMobile, spoke with...

EMV Liability Shift: Are You Ready?

September 28, 2015

The talking is nearly over for the US payments industry as October 1st sees the all-important EMV liability shift. Chip cards are being issued to consumers and merchants are upgrading their point of sale...

The 5 Most Dangerous Mobile Banking Habits

September 14, 2015
/   Voices

Mobile banking grows more ubiquitous every year. 52 percent of smartphone owners with a bank account use mobile banking, according to the Federal Reserve, and more than half of users log in at least...

The Case for CSR

September 7, 2015

The demise of a New York City law shouldn’t stop good works

FI Highlight: Nusenda Credit Union

September 1, 2015
/   Spotlight

While it is important for banks and credit unions to consider the needs of consumers, it’s also important for FIs to take employee needs into consideration as well. Michelle Dearholt, SVP of Human Resources at Nusenda...

Is a .bank Domain Right for Your Bank?

August 28, 2015
/   Voices

With the general availability of the .bank registry under way, more than 5,500 applications from over 2,200 banks have already taken place, according to fTLD Registry Services.

Can Smartphones Solve ATM Skimming

/   Insights

ATM skimming remains a big business for organized crime rings. According to a recent article in ATMMarketplace.com, card skimming accounted for more than $2 billion in losses. One new approach that banks are exploring...

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the Banking.com team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

What We’re Reading

May 5, 2011
/   Spotlight

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. Virtual Banking Worlds Provide Tangible Lessons American...

What We’re Reading: Thanksgiving Edition

November 22, 2012
/   Spotlight

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. Mobile Thursday? Plans for Thanksgiving...

It’s always good to see a comprehensive study, especially one based on a survey, that offers more than just a snapshot in time. “Consumers and Mobile Financial Services,” the brand new report from no less an authority than the Federal Reserve Board, is perfect in that regard. It comes with a mountain of data on where we are in this perfect triangulation of money, technology and human behavior.

For the record, there’s clearly considerable movement in this market—consumers are using mobile devices to carry out personal banking functions more than ever before, and every specific function is clearly trending upward. However, there are also signs that adoption is not as fast, nor as widespread, as other mobile-enabled capabilities.

First, the good news, and there’s plenty of it. Fully 87% of the U.S. population now has a mobile phone, and nearly half of those qualify as ‘smartphones’—that is, offering Internet access. In turn, nearly a quarter of those consumers, or 21%, engaged in mobile banking activities during the past 12 months, and another 11% say it’s likely they’ll do the same during the next 12.

Drilling down one level deeper, the most frequent use of mobile banking capabilities is to check account balances or recent transactions—that’s the word from 90% of mobile banking users. The second most common activity is transferring money between accounts, attributed to 42%.

However, the numbers fall precipitously when it comes to more complex activities: 21% of mobile payment users use the ability to transfer money directly to another person’s bank, credit card or PayPal account, and only 12% made a mobile payment in the past year.

Security is clearly a major concern: 48% cite this as the primary obstacle to mobile banking, and 42% say it’s why they don’t make mobile payments. However, what the report also seems to indicate is that rather than using mobile devices and capabilities for a new kind of banking, they’re all basically doing the same thing.

In fact, more than a third of mobile phone users who don’t use mobile payments either don’t see any benefit to be derived from using mobile payments, or actually find it easier to pay with another method. Fully 58% specifically note that they haven’t yet adopted mobile banking because their needs are being met without it. That can’t be good news for the software developers working to create innovative applications for their banks’ customers.

Age is clearly a factor. Consumers between 18 and 29 account for only 22% of mobile phone users but exactly double that for mobile banking users. By contrast, only 6% of those 60 and over practice mobile banking (while they’re 24% of the mobile phone universe. In other words, there’s clearly an upward trend here. But is that enough?

The report has been hailed as a clear sign that mobile banking has a great future, and it clearly does. But it’s also possible to have a slightly contrarian view.

The practice of e-commerce surged only after consumer behavior changed with regard to shopping. Overcoming the same security concerns they have now (if anything, the fears were greater then, given that it was still a novelty), shoppers bought more, and bought differently, than they did otherwise. Mobile banking needs to make a similar leap.

The reality is that consumers have an ambivalent relationship with money; they don’t look at the bank the way they do the grocery store. The general availability of more applications and online services is vital, but it may not be enough. As professionals, we have some work to do in persuading our customers that mobile banking is not just safe, but that it also enables them to do many things they can’t do otherwise. Only then will the future get here faster.



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James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Brad Strothkamp


Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.