2016 National State of Financial & Economic Education

April 26, 2016

Every two years, the Council for Economic Education (CEE) comprehensively reviews the state of K-12 economic and financial education in the United States, collecting data from all 50 states and the District of Columbia.

FI Highlight: Rivermark Community Credit Union

/   Spotlight

We recently spoke to Rob Mills, Vice President of Technology at Rivermark Community Credit Union to discuss the credit union’s new digital banking experience, how they “fail faster,” and how they continue to evolve...

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...

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...

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...

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...

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...

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...

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...

The below post was written by Andrew Levy, CSO at Crittercism

Mobile is no longer for a small slice of society; it’s redefining the way people live on a global scale. Today, 2.6 billion people walk the earth with a smartphone in their hands. By 2020, this number will likely hit 6.1 billion, or 70 percent of the world’s population.

In addition to the growing proliferation of mobile phones in society, the way we use them is evolving, too. Less than 10 years ago, many consumers were reluctant to dip their toes into the waters of mobile banking. But today, that’s changed. Even if you don’t personally use mobile banking services, there’s a good chance many of your friends and family do: Today, 69 percent of mobile users currently do some form of banking on the their phones. And consumers are increasingly using mobile for more complex interactions, moving beyond checking their account balance to transferring funds and even applying for loans.

As mobile banking continues to experience hyper consumer growth, the financial services industry is trying to adapt, and ultimately determine how mobile fits into banking’s big picture.

Mobile creates a myriad of opportunities to revolutionize banking. Forrester predicts that by 2017, 108 million customers in the U.S. alone will be using mobile banking. Consumers are hungry for new ways to make their banking easier and more efficient. Proactive banks have an opportunity to transform consumer behavior, win millennial customers and satisfy existing customers by taking advantage of the unique differentiation opportunity of mobile.

Mobile certainly will bring more changes for the financial services industry. Here are five of the biggest ways mobile banking has already reimagined the landscape – so far:

#1. Brick-and-mortar banking is officially passé.
Growing numbers of people are mobile-only customers who have either stopped using or significantly reduced their use of other banking touch points. In Crittercism’s 2015 Banking Survey, more than half of the 235 individuals surveyed reported banking online, while more than one third use mobile apps for their banking.

This shift has caused another phenomenon: Banking with a brand-name institution is now less important to consumers. There’s been a move to “white-label” banking, where banks provide the financial capabilities for payment wallets like Google Wallet and Apple Pay. For example, T-Mobile’s Mobile Money product sits atop of Bancorp Bank, but we are really only aware of the T-Mobile brand.

#2. Millennials have emerged as mobile trailblazers.
Millennials, the generation characterized as the “iGeneration,” are unsurprisingly leading the mobile charge.

Smartphones and tablets are central to Millennials’ “on-demand” lifestyle, making the mobile banking adoption rate for this group a whopping 46.6 percent. Globally, the millennial population looks to do their banking through a mobile app. Over 43 percent do it online via their bank’s website, while only 7.8 percent use a physical bank. This maps with Bank of America’s recent study, which found that nearly 3 in 5 Millennials use their bank’s mobile banking app – the most active users of any generation.

#3. Generation X is starting to dip their toes in mobile banking.
Although Gen Xers display a willingness to adopt mobile across the board, they lack the enthusiasm of their millennial counterparts. The reason is threefold: decades of status quo banking is ingrained in their minds, security concerns them and some find their bank’s existing mobile interface or app difficult to work with.

However, more and more Gen X consumers are becoming comfortable with the idea of more extensive mobile banking – and banks need to prepare for the swell in users, and accompanying demand for support these users will create.

#4. The amenities consumers value have changed.
In the past, consumers would consider factors like location, interest rate and even personal relationships with bank staff before choosing a bank. But today, the decision-making process is different. Because checks are now often deposited via smartphone and direct deposit, there is rarely a need to visit a physical brick and mortar bank location. That means amenities such as bill pay, lack of fees and control over money transfers have become more important.

Today, the landscape is competitive, to say the least. Banks compete against each other every day, courting customers with special offers and advanced services that promise to make their lives a little easier. Mobile capabilities are on this list – in fact, they’re among the most lucrative lures at a financial services brand’s disposal.

#5. Mobile wallets and other disruptive technologies are becoming the rule, not the exception.
Prepaid cards and mobile wallets have become major disruptive forces in the financial services industry. Not only do they give consumers new vehicles in which to store money, bitcoin, Apple Pay, PayPal and others, they also bring new ways to manage transactions. And since these alternatives to paper cash are often combined with negligible interest rates, banks must continue to find new strategies to adapt to the rise of these new consumer banking options.

Mobile will continue to shape the financial services industry in the years to come. To learn more about the trend – and the changes still yet to come – download Crittercism’s 2015 Banking Survey.

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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.

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.

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.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp