PREVIEW OF Mobile Banking, Mobile Payments

Transcription

1 Accurate Financial Data Since 1989 PREVIEW OF Mobile Banking, Mobile Payments What Consumers Value 2015 RateWatch Sales and Service:

2 Contents Introduction Which type(s) of financial institution(s) do you currently use for your banking needs? Results Total Respondents... 5 Results Gender, Age and Income On average, how often do you visit a physical branch for banking? Results Total Respondents... 7 Results Gender, Age and Income On average, how often do you access online banking? Results Total Respondents... 9 Results Gender, Age and Income Section 1: Mobile Banking 4. On average, how often do you use mobile banking? Results Total Respondents...13 Results Gender, Age and Income Why do you not use mobile banking? Results Total Respondents Results Gender, Age and Income How likely are you to use mobile banking in the next 12 months? In the next months? Results Total Respondents...17 Results Gender, Age and Income Which mobile banking features do you use now or would be interested in using, if made available to you, in the next 12 months? Results Total Respondents Results Gender, Age and Income Which mobile banking feature is the most important to you? Results Total Respondents Results Gender, Age and Income What features of mobile banking do you currently pay for or would consider paying for? Results Total Respondents Results Gender, Age and Income How often do you use the following within your mobile banking: Results Total Respondents Results Gender, Age and Income What concerns do you have regarding mobile banking security? Results Total Respondents Results Gender, Age and Income Section 2: Mobile Payments 12. On average, how often do you use mobile payments? Results Total Respondents Results Gender, Age and Income If you were offered the option of using your mobile phone to pay for purchases in store, how likely would you be to use it? Results Total Respondents Results Gender, Age and Income Mobile Banking, Mobile Payments What Consumers Value Page 2

3 Contents Section 2: Mobile Payments Continued 14. When using your mobile payments app, which source(s) of funds do you use to complete (pay for) your transactions? Results Total Respondents...47 Results Gender, Age and Income What is your primary payment source? Results Total Respondents...49 Results Gender, Age and Income Why is [Q15] your primary payment source? Results Total Respondents Results Gender, Age and Income Which of the following mobile payment services have you used in the past 12 months? Results Total Respondents Results Gender, Age and Income Section 3: Demographics Gender Age Education Income Region Mobile Banking, Mobile Payments What Consumers Value Page 3

4 Introduction Value is key. Attaining and retaining customers is dependent on the value provided to them. For financial institutions, this could be in the rates offered, the fees charged (or not), or the level of customer service provided. And with increasing prominence, value is seen in the convenience added to customers lives through services like mobile banking. This survey aims to understand consumers use and views of mobile banking as well as the burgeoning service of mobile payments. Survey responses were obtained through a third party service with questions distributed January 29 to January 30, 2015 to consumers ages 18 and older throughout the United States. 711 total unique responses were received with 651 having completed the full survey. General thought is that financial institutions are slow to keep up with changing technology. But in an environment where competition is fierce not only among the institutions themselves, but increasingly with "non-bank" institutions, the light has been seen over 80% are currently offering mobile banking and of those that don t, over 50% plan to roll it out this year. And they seem to be ahead of consumers. In May of 2013, RateWatch commissioned a consumer based survey on bank technology studying behaviors and preferences. Specifically looking at Mobile Banking usage, we found that in the last two years usage has increased only 2.02% (from 61.80% to 63.82%). But those that are using mobile banking, are using it more. In 2013, 37.3% said they use mobile banking at least once per week and two years later that number has risen to 45.15%. And overall, mobile banking feature usage has increased dramatically. The once unknown Person- 2-Person Payments and Account-2-Account Transfers have increased 21.6% and 16.7% respectively. The highest increase was to Bill Pay with nearly a 30% increase. Every indication is, that as long as safety concerns are addressed, consumers will continue to increase their demand for mobile banking and the ability to easily, conveniently make purchases and manage their money. In a recent study by Carlisle & Gallagher Consulting Group, the top three factors that influenced the use of mobile banking were ease of use (72%), ease of making payments (65%) and better features (65%). And it s not just for the young. Those over 60 are more likely to use mobile banking for Bill Pay than any other age group. ORDER TODAY!» Mobile Banking, Mobile Payments What Consumers Value Page 4

5 Survey Results Total Respondents Question 1: Which type(s) of financial institution(s) do you currently use for your banking needs? (Check all that apply) 47.26% Large National Bank 26.30% Regional Bank 13.08% Small Community Bank 5.77% Internet Bank (no physical branch) 32.77% Credit Union 2.11% Savings & Loan Those with less than a high school education are more likely than any other education level to select Internet Banks for their banking needs % bank at Internet Banks compared to between 2.50% and 7.03% of other education levels. 3.66% None of the above # of Relationship Types Large National Bank Regional Bank Among Those with a Relationship at: Small Community Bank Internet Bank (no physical branch) Credit Union Savings & Loan % 59.36% 41.94% 29.27% 49.79% 20.00% % 30.48% 44.09% 43.90% 41.63% 40.00% % 8.02% 11.83% 19.51% 7.30% 20.00% % 2.14% 2.15% 7.32% 1.29% 20.00% 100% 100% 0% 100% 100% 100% 3 Relationships (3.52%) 4 Relationships (0.70%) 2 Relationships (21.80%) Among Total Respondents 1 Relationship (73.98%) Mobile Banking, Mobile Payments What Consumers Value Page 5

6 Survey Results Total Respondents Question 7: Which mobile banking features do you use now or would be interested in using, if made available to you, in the next 12 months? (Check all that apply) 100% 90% 80% 70% Compared to all other education levels, those with a Graduate Degree are most likely to use Bill Pay (see chart below). Response percentage 60% 50% 40% 30% Foreign language support Pay credit card 20% 10% Check Account Balances 91.36% 54.44% 79.21% 35.28% 19.16% Receive Account Alerts Transfer Between Your Own Accounts Make Loan Payments Use Personal Financial Management Program (Software that helps you manage your money/budget) 64.72% Bill Pay 43.93% Remote Deposit Capture 29.91% 27.57% 19.63% P2P Person-to-Person Payments A2A Account-to-Account Transfers Mobile Wallet 10.75% 14.95% 50.00% Apply for a Loan Open a Checking or Savings Account Locate ATMs and Branches 24.07% Withdraw Cash from ATM 0.93% Other Use or Interest in Bill Pay - By Education levels Less than high school degree (7) High school diploma (or GED) (17) Some College, but no degree (65) 2-year college degree (33) 4-year college degree (107) Graduate-level degree (79) 57.14% 35.29% 60.00% 69.70% 61.68% 83.54% Section 1: Mobile Banking Mobile Banking, Mobile Payments What Consumers Value Page 6

7 Survey Results Total Respondents Question 13: If you were offered the option of using your mobile phone to pay for purchases in-store, how likely would you be to use it? Approximately 1/3 of respondents are at least somewhat likely to use in-store mobile payments, while 1/3 are unlikely and 1/3 have no desire to make in-store mobile payments. Very Likely (2.75%) Likely (8.67%) Very Likely, Likely, Somewhat Likely = 32.56% Will Not Use (32.77%) Total Respondents Somewhat Likely (21.14%) Very Unlikely (20.72%) Unlikely, Very Unlikely = 34.67% Unlikely (13.95%) Section 2: Mobile Payments Mobile Banking, Mobile Payments What Consumers Value Page 7

8 More Surveys from RateWatch RateWatch conducts surveys of both bankers and consumers across the country to keep up with new and evolving financial industry topics. Surveys are conducted online and responses are compiled into a report format with charts and graphs to easily review the findings. Results are displayed as a whole for all respondents and also broken out into cohort groupings. Visit our Industry Survey webpage to request more information or purchase a previously released survey. $99 4 th Annual Mobile Banking The continued evolution of banking from the bankers' perspective Consumers say they want mobile banking, but are they really using it? Depsite what may feel like a slow growth process, bankers across the country are continuing to add the service and increase capabilities. This survey aims to understand how financial institutions are offering these services, how their customers are utilizing them and what results have been seen. October, 2014 $149 Consumer Investing How do Banks and Credit Unions Fit? There is no doubt Americans need to invest for their futures increasing age expectancy and cost of living is driving up retirement age...but many are weary. They are looking for someone they trust or built a relationship with, to help them make important financial decisions. Who will they turn to? In Consumer Investing How do Banks and Credit Unions Fit? we aim to understand the behaviors and preferences of consumers regarding their current and future investment plans and how the financial institution may be able to play a role. August, 2014 $149 Home & Auto Lending: Today's Customer What does today's loan customer look like? What do they have for home and auto loans now? How have they managed those loans with refinance options and how much do they still owe? Most importantly, what are they looking for in the near future? In Home & Auto Lending: Today's Customer we aim to understand the behaviors and preferences of consumers regarding their current loans and future loan plans. May, 2014 $299 Monetizing Mobile Banking For Small Business Customers Do you have a mobile strategy for reaching, maximizing and monetizing your Small Business customers? In Monetizing Mobile Banking For Small Business Customers we identify a four-step framework for defining and pricing winning mobile banking solutions, a breakdown of mobile banking service categories, top features valued in each service category, 6 customer clusters and their typical banking behaviors, suggested service package designs and suggested pricing models. April, 2014 ORDER TODAY!» Mobile Banking, Mobile Payments What Consumers Value Page 8