The State of the Mobile Experience:

The State of the Mobile Experience: An Evaluation of Retail, Insurance, Finance and Supply Chain Industries www.pointsource.com

Table of Contents 1 Introduction 2 Key Findings 3 Retail 9 Insurance 14 Supply Chain 18 Finance 21 Conclusion 22 Methodology

Introduction In today s technologically dependent world, the user experience is a critical component of any business digital strategy. Across digital channels like mobile apps or websites, a well-planned user experience ensures employees and consumers complete desired tasks with minimal friction. Therefore, it is no surprise a poor user experience can cripple even the most useful of mobile capabilities, frustrating users and, in some cases, even sending them straight to competitors. While many companies understand the advantages of a strong mobile user experience and are making the necessary investments in digital technologies, the majority still report dissatisfaction with their current mobile experience. The PointSource The State of the Mobile Experience study, which surveyed nearly 300 key influencers and decision makers across retail, insurance, finance and supply chain industries, reveals that nine in 10 companies already have a mobile website, and eight in 10 currently use a mobile app. However, just 15 percent respondents with an existing mobile presence (defined as having a mobile website and/ or mobile app) rated it as excellent. With that in mind, companies are ready to take the necessary steps to improve. On average, 91 percent of companies plan to invest in mobile in 2016, and of those, 86 percent plan to spend more than $100,000. Mobile will also remain a top priority in the years to come. On a ten point scale, 69 percent of respondents rank mobile as an eight or above in terms of importance over the next three years. Companies abilities to engage, convert and retain consumers on mobile will depend on their commitment to improving and mastering the right user experience moving forward. This is particularly true as the mobile landscape becomes overpopulated with options, giving consumers the power to shop between offerings or to switch brand loyalty at a moment s notice. The PointSource The State of the Mobile Experience study reveals key pain points within the mobile user experience across the retail, insurance, supply chain and finance industries, as well as opportunities for companies within these verticals to outpace competitors in mobile design and strategy. 8 IN 10 COMPANIES USE A MOBILE APP Less than 1 in 5 respondents with an existing mobile presence rated it as "excellent" 9 IN 10 COMPANIES HAVE A MOBILE WEBSITE www.pointsource.com The State of the Mobile Experience 1

Key Findings Although top-ranking companies understand simply having a mobile presence is no longer enough and are poised to invest, key findings from the survey indicate these businesses still struggle to identify how to improve their mobile user experience in tandem with evolving consumer and user demands. No industry feels truly confident with its current mobile offerings: On a 10 point scale, just 47 percent of finance respondents, 37 percent of retailers, and under a quarter of insurance (23 percent) and supply chain (21 percent) companies ranked their existing mobile experience nine or above. User expectations are a key motivator behind mobile investments: Of companies planning on investing in mobile in the next year, the top reasons included wanting to meet customers expressed desires for mobile (71 percent), wanting to expand current products or services (61 percent), and wanting to prepare for a mobile-driven future (59 percent). Companies are ready to spend to meet employee and customer demands: Of those investing in mobile in 2016, 32 percent say their companies plan to spend between $100,000-$250,000, 29 percent plan to spend between $250,000- $500,000, and a quarter plan to spend more than $500,000. Companies will focus on creating mobile experiences that tie in new and emerging technologies: For those respondents planning to invest, mobile payments (64 percent), social commerce (52 percent) and video marketing (49 percent) will be areas of focus over the next year. Retail and finance organizations are ahead of insurance and supply chain companies in mobile strategy planning and implementation: Eighty-five percent of finance organizations and 84 percent of retail companies report having a mobile app, while 74 percent of insurance companies are currently using an app. Supply chain companies lag behind at 71 percent. The same goes for mobile websites, although slightly less significant, with 92 percent of finance companies and 91 percent of retail companies currently offering one, compared to 89 percent of insurance companies and 81 percent of supply chain companies. Regardless of industry, businesses plan to invest in mobile this year: Across all four verticals surveyed (retail, insurance, supply chain and finance), 88 percent or more of respondents companies plan to invest in mobile in 2016. Retailers have an opportunity to further enhance the user experience with applied mobile analytics: A third of retail decision makers do not currently track purchasing history via mobile, and more than half are not tracking loyalty metrics. Only 38 percent currently track app opens. Insurance companies are unsure what user experience to offer to their customers, and some even question the value of mobile within their organizations: When asked why they have not yet adopted mobile, aversion to change was the number one reason given (65 percent), followed by a fear of losing customer touch points (43 percent) and a general lack of comfort with mobile devices (39 percent) Supply chain organizations must focus their efforts on tailored mobile offerings: Seventy percent of supply chain respondents with a mobile app tailored to their company report improved customer satisfaction, 63 report stronger connections with customers and 59 percent report improved internal processes. Finance companies need to overcome security barriers for successful implementation: Seventynine percent of finance companies see security as a concern during mobile implementation, and 47 percent consider cost a concern. www.pointsource.com The State of the Mobile Experience 2

Retail THE STATE OF MOBILE IN THE RETAIL INDUSTRY Perhaps more than any other industry, retailers understand the variety of benefits a steadfast mobile presence and user experience provide. In 2015, mobile commerce accounted for 30 percent of all U.S. e-commerce in 2015, and U.S. retail e-commerce dollars are projected to grow to almost 482 billion in 2018. It is no surprise a consumerdependent field such as retail would be attuned to shoppers growing preference for mobile. The survey revealed that 91 percent of retail companies already have a mobile website, and 84 percent already have a mobile app. Likewise, 77 percent of retail decision makers with an existing mobile presence ranked their mobile strategy as seven or higher on a 10 point scale. However, while retailers have done well thus far to implement mobile technologies ahead of the curve, there is much they can still do to embrace the next level of mobile capabilities, especially as related to improving the user experience. Challenges for a successful mobile strategy in retail go beyond the user experience itself and focus on value and the logistics of implementation. More than half of retail respondents say their biggest challenge is finding ways to integrate mobile strategy into an overall marketing strategy. Similarly, one in four respondents (24 percent) say a lack of internal resources, such as staffing, is a barrier to mobile implementation. www.pointsource.com The State of the Mobile Experience 3

Retail What are your company's biggest challenges in executing a successful mobile strategy? 54% Integrating mobile strategy into overall marketing strategy 42% Uniting our marketing and IT departments 24% Lack of internal resources (staffing, etc.) 20% Not having the budget to do so effectively 18% Lack of internal support from management for mobile 17% Not sure what a successful mobile strategy would be for the business 16% Lack of consumer insight 8% None of the above 1% Other (please specify) 42% Retail respondents face challenges uniting their internal marketing & IT departments Another major hurdle to successful mobile implementation is the siloed nature of companies themselves. Forty-two percent of retail respondents face challenges uniting their internal marketing and IT departments, signaling that even when retailers have the means to invest in mobile and embrace digital transformation, they must still find ways to bridge inter-organizational gaps and drive alignment across all lines of business. Doing so is critical to successfully establishing and driving return on investment (ROI) from a digital strategy. Today s digital model has blurred the lines of influence and multiple stakeholders have a vested interest in an organization s mobile and digital strategy. The IT department may be focused on the software and hardware costs, implementation and maintenance, while the marketing department s focus leans toward user experience across channels, messaging, marketing and overall company strategies. However, as the skills of the former make the goals of the latter possible, it is crucial for the two departments to communicate technical architecture decisions and work collaboratively. The evolving digital landscape demands a new level of cooperation between IT and marketing, and the success of a retailer s mobile experience will correlate directly to how well that collaboration is achieved. www.pointsource.com The State of the Mobile Experience 4

Retail POOR ARCHITECTURE AND TECHNOLOGY IMPLEMENTATION NEGATIVELY IMPACT THE USER EXPERIENCE IN RETAIL Retail respondents with an existing mobile presence report the most common mobile pain points for their retail customers are a result of poor design or IT infrastructure. Nearly half (48 percent) list slow page load times as a recurring issue, 31 percent list difficulties navigating on mobile, and more than a quarter (28 percent) list either smaller images/videos or not being able to pay on mobile as a roadblock. Perhaps most shockingly, 28 percent of retail decision makers with an existing mobile presence still cite a malfunctioning app or website as a company limitation. Although retailers have been quick to embrace mobile, their dissatisfaction with current systems points to deeper issues of mobile app architecture and design. Moving forward, retail companies must refocus on making the right technology choices and properly implementing and integrating new capabilities with their existing systems of record or risk losing consumers over time due to a muddy user experience. Simply having a mobile presence is no longer enough, and retailers need to invest in mobile apps and websites that enhance how shoppers can reach and purchase from them online. Which of the following are mobile pain points for your customers? 48% 31% 28% 28 % 27% 16% 4% Slow page load times Difficult to navigate site or app Malfunctioning app or website Smaller images/videos Not being able to pay via mobile None of the above I don't know www.pointsource.com The State of the Mobile Experience 5

Retail Retailers are also failing to implement the range of mobile capabilities best suited to nurture relationships with shoppers. For example, while mobile devices can help deliver valuable content to loyal users, just 40 percent of retail respondents with an existing mobile presence are currently using a loyalty app to engage with their customers. The study also revealed that retailers are struggling with the best ways to leverage in-store geolocation, missing out on the personalized features that can enhance the shopping experience by engaging customers with targeted content. In fact, respondents with an existing mobile presence ranked it as the least used form of engagement. Retail respondents with an existing mobile presence also tend to lack the technology integrations necessary to enhance the e-commerce user experience across additional mobile touch points, such as mobile coupons, mobile payments and push notifications. Which of the following mobile experiences do you currently use to engage your customers? 57% Mobile coupons 51% Mobile Payments 40% Loyalty app 34% Push notifications 22% In-store geolocation technology 3% None of the above Which of the following metrics are you currently tracking in your mobile experience? 57% Purchase history 43% Loyalty metrics 38% App opens 31% Geolocation 29% Cart size 29% Time of day 17% Refer a friend 11% None of the above Retailers are also currently missing the opportunity to use mobile to track and improve the customer experience over time. A third of retail decision makers with an existing mobile presence do not track purchasing history via mobile, more than half do not track loyalty metrics and 63 percent do not track app opens. When it comes to purchasing behaviors like cart size or time of day customers use mobile, 71 percent of retail respondents companies with an existing mobile presence do not track either via mobile. OPPORTUNITIES FOR RETAILERS MOVING FORWARD Beyond sales, perhaps the biggest argument for adopting the next level of mobile technologies such as loyalty apps and geolocation is that, of those retail companies already using the technologies, the majority reported positive results. Sixtyone percent of retail respondents already using a loyalty app have found success, and 61 percent say location-based notifications are contributing to positive results as it pertains to user engagement. This trend holds true across many key mobile consumer touchpoints. Seventy-seven percent of retail respondents whose companies currently offer mobile customer service support say it is working well. Sixty-four percent whose companies currently allow customers to shop online and pickup in-store say it is working well. Furthermore, 64 percent whose companies currently allow customers to checkout via mobile say it has been successful. www.pointsource.com The State of the Mobile Experience 6

Retail Currently have and works well Do not have, but interested in offering Currently have, but challenging to provide Do not have, but not interested in offering 72% 51% 46% 46% 45% 21% 29% 26% 28% 29% 22% 20% 23% 6% 0% 11% 10% 6% 6% 3% Customer service support Shop online, pick up in-store Mobile checkout Mobile coupons Location-based notifications 40% 29% 23% 38% 38% 32% 24% 28% 28% 31% 31% 30% 19% 19% 19% 20% 31% 8% 5% 6% Push notifications Loyalty program integration POS integration Self-service kiosks "Smart" dressing rooms Changing industry trends like mobile checkout are not a fad, but rather a reality retailers must embrace in order to continue providing a competitive mobile user experience. With many retailers finding success across mobile offerings, those companies yet to embrace the trend will fall further behind if they do not do so quickly. Finally, the right mobile experience can help retailers bridge the gap between their e-commerce and brickand-mortar offerings. As more shoppers turn to e-commerce, it is increasingly important for brands to develop a holistic view of shoppers and combine any information gathered online or offline. Notably, retailers can use this data to empower their employees to improve the in-store shopping experience for customers. Although the study shows 80 percent of retailers with an existing mobile presence have the technical capabilities to link mobile shopping and in-store purchases, just a third of those companies currently make mobile technologies available to help associates assist in-store shoppers. Approximately two-thirds are interested in doing so, however. In the same vein, 61 percent of retail respondents report not yet offering smart dressing rooms in-store, and half of those (51 percent) expressed no interest in investing in the technology in the future. www.pointsource.com The State of the Mobile Experience 7

Retail Are you interested in having in-store associates use mobile technology to assist costumers? 52% Yes, very interested 33% Our associates already have access to mobile technology to assist in-store customers 13% Yes, slightly interested 2% No, not interested AREAS FOR GROWTH IN THE COMING YEARS Based on metrics retail respondents wish they could track within a mobile experience, retailers see greater opportunities for their tracking capabilities in the years to come. The survey found that among what retailers would like to be tracking purchase history (51 percent), loyalty metrics (38 percent) and applications (36 percent) ranked highest. With these services top-ofmind for retail respondents, these will likely be some of the largest focuses for retailers moving into 2017 and beyond. Which metrics do you wish you could track in your mobile experience? Tips for Retail Companies Embrace the next wave of mobile capabilities to improve the user experience: As consumers become more comfortable shopping online, they are demanding the next generation of capabilities and features to enhance their sales experience. Retailers have done well to invest in mobile strategies first, but this dominance will quickly falter if retail companies do not push forward now. 51% Purchase history 37% Loyalty metrics 36% App opens 35% Geolocation 34% Cart size 28% Time of day 24% Refer a friend 9% None of the above The best mobile strategy is 360: E-commerce has become the norm, but retailers would be remiss to forget about the in-store experience. The strongest mobile solutions can link online and in-store information and equip their employees to use their sales data no matter where they may be. www.pointsource.com The State of the Mobile Experience 8

Insurance THE STATE OF MOBILE IN THE INSURANCE INDUSTRY Insurance companies require a mobile offering capable of servicing customers (policyholders), employees (insurance providers) and third party agents and contractors. The benefits of a wellcrafted user experience are ubiquitous across the entire insurance equation. While the majority of insurance respondents say their company has a mobile website (89 percent) or mobile app (74 percent), 19 percent of those with an existing mobile presence rated the experience as a six or below on a 10 point scale. Like other industries, insurance respondents understand the importance of an investment in mobile, and 89 percent of insurance decision makers are planning to invest in mobile in 2016. Of those planning to invest, 85 percent plan to spend more than $100,000, with 26 percent reporting they plan to spend more than $500,000. Key motivators for doing so are customers expressed interest in mobile applications (77 percent) and intentions to expand current products or services (66 percent). www.pointsource.com The State of the Mobile Experience 9

Insurance Why will you be investing in mobile in 2016? 77% Our customers have expressed a desire in mobile experiences 66% We are trying to expand our current products or services 62% The future is going to be mobiledriven and we want our business to be ready 51% We need mobile technology to make our internal processes more efficient BALANCING WHAT USERS WANT WITH WHAT THEY ACTUALLY NEED Insurance respondents say their customers' biggest pain points are related to speed and information. Sixty percent report customers not having access to the necessary information when they need it, 55 percent say customers do not receive assistance in a timely fashion and 26 percent point to a lack of communication with agents as a main customer pain point. What are your customers' biggest pain points? 2% Other (please specify) 60% Not having access to the necessary information when they need it 26% Lack of communication from agent 55% Not receiving assistance in a timely fashion 13% None of the above 30% No way to retrieve status of claim or policy The services and features insurance decision makers are interested in providing via mobile address these customer pain points nicely. In order to address the issue of speed, 81 percent are interested in offering mobile payments, 60 percent in claims assistance and 58 percent in policy quotes. Likewise, to improve daily access to insurance information, 62 percent of respondents would be interested in offering policy management via mobile, 62 percent in alerts and notifications and 51 percent in live chat with customer care representatives. www.pointsource.com The State of the Mobile Experience 10

Insurance Which of the following services and features would you be interested in providing via mobile? 81% 62% 62% 60% 58% 51% 34% 32% 30% 2% Mobile payments Policy management Alerts & notifications Claim & assistance Policy quotes Live chat with customer care Change of life notifications Weather or event tracking Geolocation technology Other What are your employees' biggest pain points? 45% Working across departments to sell and manage policies 42% Handling too many different claims and policies 42% Not having access to information when in the field 28% Not being able to register new customers or submit claims from the field 26% Lack of communication from policy holder 8% None of the above 2% Other (please specify) OPPORTUNITY TO IMPROVE INTERNAL PROCESS PAIN POINTS FOR INSURANCE ORGANIZATIONS When asked about mobile for their employees, insurance respondents reported a range of different concerns. Insurance decision makers do agree mobile solutions have the potential to alleviate some of the industry s biggest employee struggles. They listed working across departments to sell and manage products (45 percent), handling too many different claims and policies (42 percent), and not having access to information when in the field (42 percent) as the top three biggest pain points among employees. Insurance agents, adjusters and contractors spend a lot of their time in the field, away from their computers, without internet or intranet access. Customers expect the agents they are working with to be well informed, so it is imperative that they can access the information they need while on the go. Employees and the customers they serve need up to date contracts and claims in order to make well informed decisions. Much of the data they need to access is spread across platforms. A frictionless mobile presence will enable agents to perform their jobs with excellence no matter where they are. www.pointsource.com The State of the Mobile Experience 11

Insurance As with customer concerns, when asked how employees would benefit from mobile technology, insurance respondents offered solutions to the employee pain points listed above. Seventy percent feel the use of mobile would expedite administrative duties, 64 percent say it would improve access to sales information in the field, and 45 percent and 42 percent believe it would improve access to predictive sales data and demographic information respectively. Which of the following ways do you think your employees would benefit from mobile technology? 70% Expediting administrative duties 64% Field sales information OVERCOME MOBILE ADOPTION HESITATIONS WITH A KILLER USER EXPERIENCE Nearly all (96 percent) insurance respondents say their employees would be willing to use a mobile insurance app to manage accounts. Still, only about three in four of those companies report having any kind of a mobile app, indicating room for growth. Many insurance decision makers register their employees willingness to adopt mobile solutions and the curative powers mobile could bring to common instance pain points, but few are backing this behavior with strategic mobile investments. Despite seeing a willingness from employees to use a mobile insurance app, when asked what would prevent employees from doing so, insurance respondents still feel employees will have objections to mobile solutions. Aversion to change was the number one reason given (65 percent), followed by a fear of losing customer touch points (43 percent) and a general lack of comfort with mobile devices (39 percent). 45% Access to predictive sales data 42% Demographic information What would prevent your employees from using an app to manage accounts? 2% None of the above 65% Aversion to change 2% Other (please specify) 43% Fear of losing customer touchpoints 39% Lack of comfort with mobile devices 10% None of the above 4% Other Insurance respondents also cited technical barriers (34 percent), budget (25 percent) and resources (19 percent) as obstacles to creating an ideal mobile customer experience. www.pointsource.com The State of the Mobile Experience 12

Insurance What is the biggest obstacle to creating your ideal mobile customer experience? 34% Technical 24% Budget 21% Prioritization 19% Resourcing 2% Other (please specify) To abet these concerns, when adopting mobile solutions, insurance organizations must focus on providing an elite user experience, particularly for employees. Ease-ofuse and a variety of functionalities both onsite and in the field will help users see the value of using mobile apps and help employees overcome their perceived reservations. Tips for Insurance Companies Invest in employees to solve customer pain points: Insurance employees and customers have many of the same concerns, and offering the former mobile capabilities in turn improves the user experience of the latter. When investing in mobile apps or website, focus on speed and access to information on-the-go to address recurring customer complaints. Win resistant employees over by creating a truly powerful mobile experience: While some insurance decision makers may feel mobile technologies are not right for their companies, insurance is an industry well suited for mobile upgrades. Even when legacy solutions are ingrained, employees will be won over by the utility of new mobile apps and see quick value in the information and answers mobile capabilities can deliver. www.pointsource.com The State of the Mobile Experience 13

Supply Chain THE STATE OF MOBILE IN THE SUPPLY CHAIN INDUSTRY In an industry where profit is driven by efficiency, supply chain companies require mobile strategies and apps that can match the sophistication and intelligence of their operations. Every day, supply chain personnel are looking for opportunities to maximize their time and resources and will settle for nothing less than a seamless mobile experience. According to supply chain survey respondents, the top four pain points within the supply chain industry are process related. Fifty-four percent struggle with managing inventory, 52 percent with quality assurance, 48 percent with generally inefficient processes and a third (33 percent) with outdated information. Supply chain companies either with a mobile presence or looking to develop one must ensure their strategy addresses these concerns, and that their mobile user experiences make handling operational tasks like these easier. www.pointsource.com The State of the Mobile Experience 14

Supply Chain What are your current pain points with the supply chain in your organization? 54% 52% 48% 33% 31% 2% 2% Managing Inventory Quality assurance Inefficient processes Outdated information Mitigating risk None of the above Other (please specify) EXISTING MOBILE SOLUTIONS ARE NOT MEETING CURRENT SUPPLY CHAIN NEEDS The survey found that while 81 percent of supply chain decision makers have a mobile website and 71 percent have a mobile app at their companies, only 23 percent of supply chain companies are currently using a mobile app or site to handle everyday tasks and projects. This disparity suggests that perhaps supply chain influencers feel their existing mobile presences do not meet the needs and expectations of users. Mobile technologies are a major financial investment to squander, but when inefficiency trumps usefulness, it is likely that supply chain companies are turning away from their current solutions. With just 1 in 10 of those supply chain respondents whose companies have an existing mobile presence ranking it as excellent, this could very well be the case. Is your company currently using a mobile app or site for everyday tasks and projects? 24% 1 in 10 supply chain respondents, whose companies have an existing mobile presence, rank it as excellent No 76% Yes www.pointsource.com The State of the Mobile Experience 15

Supply Chain COMMON PAIN POINTS FOR SUPPLY CHAIN EFFICIENCY Supply chain decision makers feel mobile would address common industry problems. More than two-thirds (69 percent) say mobile offerings would keep content consistent and up-to-date, and 62 percent say it would streamline processes across teams. Likewise, 58 percent say mobile offerings would make keeping an accurate record of inventory possible, and 52 percent say it would improve quality and safety standards. How would mobile offerings make your company more efficient? 69% Keeping content consistent and up to date 62% Streamlining processes across teams 58% Keeping an accurate record of inventory Supply chain respondents also recognize the potential of mobile to help their companies be more efficient and are open to using devices on the job. Eighty-eight percent would use mobile for logistics management, 73 percent for barcode scanning and storage, 69 percent for inventory optimization software, 58 for field service management and 40 percent for file storage. 52% Improving quality and safety standards 48% Tracking of shipments 44% Providing route efficiencies Which of the following would you be interested in for mobile? 88% Logistics management 42% Gaining supply chain data 73% Barcode scanning and storage 2% Other 69% Inventory optimization software 58% Field service management 40% File storage 2% Other www.pointsource.com The State of the Mobile Experience 16

Supply Chain If yes, you do have a mobile app or site specific to your company, what do you feel is the biggest benefit of this technology? 70% Customer satisfaction has improved 63% Customers feel more connected 59% Internal process improvement 52% Better transparency into supply chain process 48% Internal communication for supply chain processes has improved 37% Customers have better transparency into the process 4% Other HOW MOBILE CAN BEST BENEFIT SUPPLY CHAIN ORGANIZATIONS For companies within the supply chain industry, a one-size-fits-all solution will not do. Every supply chain is designed to handle unique operations, and users would benefit most from mobile strategies and apps fit specifically to meet their company s needs. Of those supply chain respondents who already use mobile for everyday tasks and projects, 82 percent of their mobile apps and sites were designed specifically for the respondents companies. These organizations are seeing the benefits of doing so, with the biggest advantage being improved customer satisfaction (70 percent). Sixty-three percent also see benefits manifest in stronger connections with customers, 59 percent in improved internal processes, 52 percent in a more transparent supply chain process and 48 percent in improved internal communications for supply chain processes. Tips for Supply Chain Companies Invest in a personalized solution: Developing a mobile strategy and embracing a mobile app is the first step for supply chain companies. However, to truly drive efficiencies, companies should personalize their mobile offerings to their exact supply chain operations and day-to-day needs. Create a mobile presence that works onsite and on-the-go: As supply chain personnel often travel to and from project sites, a mobile solution with offline capabilities will allow employees to make the best use of their time and maximize profits. www.pointsource.com The State of the Mobile Experience 17

Finance THE STATE OF MOBILE IN THE FINANCE INDUSTRY Thanks to popular money transfer systems like Venmo and Square Cash, or even larger digital solutions like the recent implementation of the EMV (Europay, MasterCard, Visa) chip standard, the financial industry has seen numerous innovations from a consumer perspective. Financial institutions are embracing more advanced offerings such as peer-to-peer payments. Seventyseven percent of banks allow customers to send money to friends and family who have accounts with them, and 71 percent allow customers to send money to friends or family who have accounts with other banks. In fact, just 8 percent of finance respondents do not currently provide some type of mobile banking option to customers. Ninety-two percent of finance respondents have a mobile website, and 85 percent have a mobile app. Of those with an existing mobile presence, just 16 percent would rank their company s current mobile experience a six or below on a 10 point scale. Are your customers able to send money to friends or family who have accounts with your bank? Are your customers able to send money to friends or family who have accounts with other banks? 23% 29% No No 77% 71% Yes Yes www.pointsource.com The State of the Mobile Experience 18

Finance ONLINE BANKING DECREASING BRICK-AND-MORTAR VISITS According to the survey, 63 percent of respondents have experienced a significant or slight decrease in customer visits to brick-and-mortar locations as a result of the rise of mobile banking. When asked to rank the importance of mobile in order to stay relevant in the financial industry, it is no surprise then that 94 percent of respondents selected six or above on a 10 point scale. When asked which finance industry verticals need further mobile development, respondents listed the following banking verticals as most important: investments (60 percent), personal banking (56 percent), business banking (55 percent), personal loans (55 percent) and business loans (44 percent). Which of the following finance industry verticals do you feel needs further mobile development? 60% 56% 55% 55% 44% 3% Investments Personal banking Business banking Personal loans Business loans None of the above When it comes to concerns with mobile adoption, respondents feel security and cost present the greatest obstacles. Seventy-nine percent of companies see security as a concern during mobile implementation, and 47 percent consider cost a concern. FINANCIAL INSTITUTIONS HAVE AN OPPORTUNITY TO STREAMLINE THE BASICS According to the study, basic day-to-day banking activities are the most common financial mobile offerings. Of those companies already offering mobile banking to customers, the survey found account alerts are the most widely used mobile service in finance, with four in five respondents companies (81 percent) providing it to their customers. Services like bill payment options (75 percent), mobile credit card payment options (72 percent) and mobile check deposits (61 percent) are also common. What are your company's biggest concerns with mobile adoption? 79% Security 47% Cost 45% User experience 21% Executive buy-in 6% None of the above www.pointsource.com The State of the Mobile Experience 19

Finance Which of the following services do you currently provide to customers with mobile? What are your customer's biggest pain points? 81% Account alerts 60% Financial literacy information 56% Completing personal banking tasks (making deposits, paying bills, etc.) 29% Comprehensive loan information 75% Bill payment options 72% Mobile credit card payment options 39% Loan applications 2% None of the above 52% Accessing personal financial information in real time 3% Other (please specify) 61% Mobile check deposit 31% Bank location information However, despite these existing offerings, finance respondents still believe their customers two biggest pain points are completing routine personal banking tasks (i.e. making deposits, paying bills, etc.) (56 percent) and accessing personal financial information in real time (52 percent). This response points to an evident misalignment of how financial decision makers perceive their mobile experiences versus how customers actually feel about using mobile. Eighty-four percent of finance respondents with an existing mobile presence ranked their current mobile experience at a seven or above on a 10 point scale, yet many still cite a clear need to improve and simplify the user experience when it comes to executing basic day-to-day tasks. The first step to doing so is for finance companies to update their understanding of their current mobile banking offerings. So long as finance decision makers are operating and investing based upon inaccurate misconceptions, their companies will continue to propel their mobile presences and user experiences in the wrong and potentially detrimental direction. Not only must day-to-day banking capabilities remain priority, but they also need to be intuitive to navigate and frictionless to use. Forty-seven percent of companies already offering mobile banking see the user experience as a concern during mobile implementation, but all banks should be taking the effectiveness of their mobile user experience seriously. With all banks offering a relatively similar scope of mobile capabilities, the user experience its ease, responsiveness and speed can distinguish companies from the rest. Tips for Finance Companies Create customer experiences based on previous interactions and consumer behaviors: If customers will not use a mobile banking feature, there s little use in banks providing it. When it comes to finance, simple solutions with a clear user experience are the most effective. Financial institutions have the opportunity to streamline processes with mobile and go deeper with customer interaction: Beyond what they are currently offering to consumers, banks have the opportunity to create better processes internally using customer data to streamline consumer interactions and internal processes. www.pointsource.com The State of the Mobile Experience 20

Conclusion The quick evolution of technologies within the mobile space demands that businesses keep pace. While the first mobile phone was released just decades ago, global smartphone users will reach 6.1 billion by 2020, catapulting smartphone usage into a billion dollar business. Consumers have embraced mobile with a great deal of speed and enthusiasm, setting the tone for businesses to follow suit. In mobile, the user experience extends beyond just how easy to use or how responsive an app or website is. It involves the capabilities and features that work together to create the added value users demand. While there is an overarching opportunity across industries to improve the mobile experience and ensure value for both users and internal processes, each vertical has its own unique challenges and barriers to a successful mobile experience. Successful organizations will take advantage of opportunities or streamline interactions and processes and work to more deeply understand use cases for their mobile applications prior to development. www.pointsource.com The State of the Mobile Experience 21

Methodology This study was compiled by a survey of more than 250 marketing and IT professionals across retail, supply chain, insurance and finance verticals. Responses were compiled from the following demographics: Industry Job Vertical Level of Current Position 38% Retail 22% Marketing 44% Manager 23% Finance 63% IT 28% C-suite or executive 20% Insurance 16% Other (please specify) 26% Director 19% Supply Chain Management 2% Other (please specify) Age of company Number of Employees Company's Annual Revenue 2% Fewer than 1 year 5% Less than 500 10% Fewer than 10 million 11% 1-10 years 38% 501-1,000 19% Between 10-50 million 30% 11-20 years 57% More than 1,000 29% Between 51-100 million 18% 21-30 years 43% More than one million 40% 31+ years www.pointsource.com www.pointsource.com The State of the Mobile Experience 22