We’ve heard all the dire predictions. Smart phones are taking over. Mobile is everything and the only thing financial institutions need. Internet banking is on its way out. And branches, heavens, those are becoming obsolete.
How much of this is based in fact and how much is just speculation?
I recently prepared a talk for a group of bankers on the future of mobile banking. Here are some interesting facts I learned.
- 84% of the US population has a mobile phone
- 39% of mobile phone users have used mobile banking, up from 33% in 2103 and 29% in 2012.
- 71% have a smart phone
- 52% of smart phone users have used mobile banking
Here’s how I interpret all of this:
True, almost everyone has a mobile phone, and more than likely it is a smart phone. Those with a smart phone are very likely to use mobile banking. So mobile banking is a must have for every size financial institution.
Ok you figured that, right? So how are folks using mobile banking?
According to a Federal Reserve study, the three most common uses of mobile banking today are:
- Check balances & recent transactions (94% of users)
- Make transfers (internal between their accounts) (61% of users)
- Account alerts (57% of users)
This made me feel so much better. Why?
While the media touts all the slick, awe-inspiring, greatest technology tools, most people are using mobile banking for the basics. They fire up their smart phones to checking account balances, transfer funds between accounts and set alerts and reminders. These are the tools that even the simplest mobile banking platforms provide.
Lest you think your FI is off the hook, look at what is growing in usage among mobile banking users:
- Mobile Deposit (51% of mobile banking users)
- Made a mobile payment (22% of mobile banking users)
Here’s how I interpret these statistics:
Mobile deposit will quickly become a must have for all mobile banking apps and not a nice to have. People will expect your mobile banking app to offer it. It’s a feature that they will use.
Mobile payments, on the other hand, which get a ton of media attention lately because of Apple Pay are not used nearly as often as the other most features. Look at these statistics carefully.
Only 39% of the 22% of people who have done a mobile payment have used mobile at the point of Sale (i.e Apple Pay – for more on Apple Pay, check out our blog titled – What the heck is Apple Pay anyway?)
Why not?
Here are some more statistics:
- 75% of people not using mobile payments say paying with cash or a debit card is just as easy.
- 62% are concerned with security.
With the buzz everywhere about mobile payments, it is easy to feel that your FI is ‘way behind’. When we actually look at consumer behavior, as long as you have a basic mobile banking option, your FI is doing just fine.
So for now, relax, take a deep breath. Then start work on a digital or mobile channel strategy because your FI will need to keep moving forward. And here’s my first tip, do no neglect your other channels, especially online banking.
As a thank you gift for reading and to help get your FI started on a digital strategy, try our free sample, a mobile banking checklist.
