According to the latest data from Compete, consumers are slowly warming up to the idea of mobile banking, but this growth is slowed by the fact that most users, even though they already use online tools to interact with their bank, never use their mobile devices to access the Internet. 72% of those who bank online never access the Internet from their mobile devices and only 8% do so more than 20 times per month. Because of this, it it no surprise that only 5% of online bankers use a mobile device to check their bank accounts.
At the same time, however, Compete's survey also found that almost 45% of respondents who use online banking think that using a wireless device would be 'useful' or 'very useful,' while only 12% think it would be 'not at all useful.'
This data from Compete also fits in well with a survey from WorkLight we reported about in June, which stated that 48% of consumers between the ages of 18-34 would use secure gadgets for personal banking if their bank offered it.
Judging from these data points, mobile banking can clearly look forward to robust growth, especially once consumers get more comfortable with using the Internet on their mobile devices.
The poster-child for online banking in the U.S. so far is the mobile site of the Bank of America, which has close a one million active users, 2/3rds of which are under the age of 35.
One aspect of mobile banking that the Compete study doesn't take into account is that a lot of banks simply don't offer very compelling mobile sites yet. Unless the experience on a mobile device is as frictionless and simple as possible, consumers will wait to check their account status at home.
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I think that many people find mobile banking appealing, but like you said unless it is completely pain free they are not going to want to use it. It seems as though banks are still in the beta stage of testing right now and maybe it will catch on more as the entire process becomes easier and more main stream.
Posted by: Jessica | October 17, 2008 12:48 PM
Mobile banking has greater traction overseas. Some of it just comes down to the different banking regulations, but there is also just a greater adoption of the technology.
As the infrastrucures are built and security measures put in place, it will be even more accepted.
Posted by: Joshua | October 18, 2008 8:39 PM
@Joshua: Where is overseas nowadays? I would love to use mobile banking. I might be in the perfect spot for it, too: South Africa. Many people here, especially black people, use their mobiles to access the internet but it'll take a while for the banks to catch up.
What the banks need are bright young people who can read about these studies and develop the sites. Oh, and a fantastic marketing team to promote the ease-of-use of such sites.
Posted by: Joy-Mari | October 19, 2008 9:56 AM
As smart phones become more common to the every day person and as banking web applications evolve, there will be more users. The interest is there, it's just not a common mainstream practice yet, it will grow within 2 years.
Craig
www.budgetpulse.com
Posted by: Craig | October 20, 2008 7:48 AM
I'd love to use a mobile banking solution, but where are they?
services like Buxfer have a kinda-offline mobile story but it's all about balances and not really about transacting
Until I can pay bills, move money between accounts (and banks) etc easily (in a 2.4" screen with a T9 keypad) I'm not sure why I'd want to adopt a half-hearted solution...
Posted by: offbeatmammal | October 20, 2008 11:10 AM