Consumers Are Increasingly Using Multiple Devices to Support Banking Needs

*This blog was originally posted on Bank Marketing Strategy by Jim Marous. Jim is a marketing services leader focused on building strategic solutions for the financial services industry. You can follow him on Twitter @JimMarous or connect on LinkedIn.

Traditional bricks and mortar facilities are being visited less as the use and importance of online and mobile devices continues to increase according to Intuit Financial Services’ 4th Annual Financial Management Survey released yesterday. According to the survey, while a large percentage of consumers still manage their finances offline (45%), the percentage of consumers using online services from their financial institution has continued to increase annually; increasing 11% since 2009 to 38% in 2011.

The main reason consumers said that they don’t visit their bank branch as often as they used to is because they are visiting their FI’s website and use their online banking tools (76%). These online banking tools are so important that one-third (33%) said they would switch their relationship to another institution if there were better online tools offered elsewhere.

The importance of online tools was reinforced by Brett King, author of the bestseller Bank 2.0 and founder of direct mobile banking start-up Movenbank at this year’s BAI Retail Delivery Conference in Chicago. “Banking is quickly changing from a place you go to something you do everyday,” stated King. He provided a chart from the American Bankers Association and Nielsen Research that illustrated the channel migration occurring today and projected in the future.

 

Source: ABA, Nielsen Research

It appears that the growth of mobile banking is only limited by the growth of ownership of a smartphone according to the Intuit study. Forty-one percent of all respondents indicated ownership of a smartphone, 23% said they used a mobile banking solution, and an additional 17% intend to try mobile banking in 2012. The primary reason consumers indicated that they do not use mobile banking was because they do not own a smartphone (25%) followed by the fact that they prefer to bank online (22%).

These findings are similar to the findings last week from comScore that drew a correlation between mobile banking and smartphone adoption. “The investments in mobile made by financial service institutions, along with the continued growth in smartphone adoption, have had a positive effect on the use of mobile financial services,” states Sarah Lenart comScore vice president for marketing solutions.

As expected, the adoption rate of mobile banking is demographically skewed. Young adults (aged 18-32) are three times more likely to carry their bank in their pocket, compared to Gen X, baby boomers or seniors. And while 65% of mobile banking users access their accounts through the internet/Web, 28% use a mobile application. “Regardless of age, each customer expects to connect to their financial institution in their own way,” said CeCe Morken, president and general manager of Intuit Financial Services.

In another Intuit study of more than 50,000 mobile banking customers, it was found that consumers tend to interact with their financial institution 45% more often if they use a combination of both mobile and online tools. These customer also tended to have larger relationships and a better retention rate.

“While we anticipate that there will be some mobile-only consumers, most people will be using multiple devices on any given day in the future,” said Intuit spokesperson Tobin Lee in a conversation yesterday. “Financial institutions must be prepared to deliver financial information and insights across multiple devices (PC, phone, tablet), optimized to the merits of each device it they are going to meet customer’s needs. If they don’t, someone else will . . . probably displacing a bank’s relationship.”

The desire for ‘anywhere app access’ is also supported by a just released study from Oracle entitled, Opportunity Calling: The Future of Mobile Communications – Part Two which found that while there was a stronger preference to use a tablet for mobile banking (34%) compared to a mobile phone (11%), the majority of consumers (55%) would prefer to use both devices. This is important to prepare for since the same study found that almost 30% of the U.S. mobile customers that do not already have a tablet device plan to purchase one in the next 12 months. These findings were also reinforced in last April’s, Intuit 2020 Report: The Future of Financial Services.

As customers continue to use multiple channels to connect with their bank, it will be increasingly important to have a 360-degree view of customer device touch points and to leverage the advantages of each device to provide an optimum customer experience. The current anxiety over online and mobile security needs to be addressed at the same time as innovations such as near field communication (NFC) and location based services get integrated into online and mobile solutions. Bankers will need to get ahead of the payments innovation curve and prepare for major distribution channel disruption. In short, banks will need to do a paradigm shift by becoming nimble at a time of increased regulation and consumer scrutiny.

Are today’s banks prepared for the massive changes ahead? Or will new online organizations such as Ally, BankSimple, Movenbank and others steal the hearts and wallets of Gen Y and device savvy consumers?

Leave us a comment below, or Tweet at the author @JimMarous.

Online Banking Ranks #1 With Consumers

An increasingly digital lifestyle has left most consumers conducting banking tasks outside of the traditional brick and mortar branch, whether via a mobile device or online banking. Intuit Financial Services’ 4th Annual Financial Management Survey echoed this sentiment as 27 percent of respondents said they only physically go into their bank or credit union once a month, excluding ATM visits.

Correlating with fewer branch visits, the percentage of consumers using online services provided by their bank or credit union continues to increase year-over-year; up 11 percentage points since 2009 to 38 percent in 2011. Not only are consumers utilizing online banking at a faster rate, they are placing a stronger emphasis on these tools. One-third of respondents said they would switch financial institutions for better online banking tools, showing the growing need for financial intuitions to provide a strong online suite of tools to customers and members.

Are you seeing a decrease in branch visits at your FI? Are your customers and members beginning to utilize online banking tools at a faster rate? Let us know in the comments section below, or Tweet @Bankingdotcom.

Nearly One Quarter of Americans Utilize Mobile Banking

Mobile continues to grow in popularity as consumers embrace a lifestyle that allows them to be connected on-the-go. For consumers using a smartphone with Internet browsing capabilities and apps, the possibilities to connect are endless. You can now pay bills, shop, peruse apartment listings and apply for jobs from the palm of your hand.

Intuit Financial Services’ 4th Annual Financial Management Survey found nearly one quarter (23 percent) of consumers are using a mobile device for banking needs and an additional 17 percent plan to try mobile banking in 2012. Of the respondents who use mobile banking, 65 percent access their bank or credit union account through the Web/Internet, while a little more than one quarter (28 percent) use a mobile application.

Similar to findings reported earlier this week from comScore, it is clear mobile banking adoption is directly linked to Smartphone adoption. Analyst firm IDC mentioned they have been predicting that smart phone growth in 2012 would exceed the feature phone, noting “in addition to more people having smart phones, banks’ awareness campaigns have also helped drive mobile banking adoption.”

Do you use a smartphone to access mobile banking? If so, do you use the Web/Internet or an app provided by your bank or credit union? If you’re an FI, how have you been driving mobile banking adoption? Let us know in the comments section below, or Tweet @bankingdotcom.

Will Bank Transfer Day Prevail?

As news rolls in regarding rising debit fees, numerous consumers across the country are voicing their opinions and putting their money where their mouth is. Encouraged by movements such as Occupy Wall Street and Bank Transfer Day on November 5th, bank customers are re-evaluating how and where they manage their money. So how are consumers really reacting? Intuit Financial Services’ 4th Annual Financial Management Survey polled 1,000 consumers in October to get a pulse on consumer’s attitudes. Below is a graphic outlining the findings:

Are you a loyal FI member, or do you plan to switch due to new fees? If you work at an FI, what are you doing to deepen relationships? Are you planning to charge new service fees?  Let us know by Tweeting @bankingdotcom or leaving a comment below.

Mobile Takes on the Desktop for Remote Deposit

Remote deposit capture solutions create a lot of buzz, but do consumers really crave the technology? With the help of Affinity Federal Credit Union, we hosted a poll earlier this month asking our readers and the customers of their respective financial institutions, “Would you prefer to deposit checks via a mobile phone, or desktop computer?” Affinity Federal Credit Union provided the question to ascertain for themselves and the larger industry whether there’s a need for both solutions at one financial institution.

The winner? Mobile remote deposit capture. Poll respondents overwhelmingly preferred the mobile technology, corresponding with the widespread adoption of smartphones. Below is a visual breakdown of the results.

The poll results didn’t surprise Affinity Federal Credit Union, New Jersey’s largest credit union with 21 branches throughout northern and central New Jersey. Nancy Chen, Assistant Vice President of eCommerce at Affinity Federal Credit Union said, “We suspected that most consumers would want to just use their mobile phone to take a quick snap shot as opposed to having to turn on the computer, turn on the scanner, and wait for it to scan. It just seems more convenient to just take a photo than to scan, so we weren’t too surprised by the results, and were glad to see that the poll validated our suspicions.”

Are your customers and members asking for remote deposit solutions? Let us know in the comments section below or Tweet @bankingdotcom.

Would you like to contribute to the next Banking.com survey? Feel free to contact us at info@Banking2020.com.

Banking.com to Host Twitter Town Hall on November 3rd

In conjunction with Intuit Financial Services’ 4th Annual Financial Management Survey, which will be released next week, we’re hosting a Twitter Town Hall on Thursday, November 3rd. The Twitter Town Hall will discuss the survey results and how they tie into current banking trends, including mobile banking adoption, consumer attitudes, what consumers are looking for in online banking tools, customer loyalty and more.

The Twitter Town Hall is open for all our readers to join and participate in the conversation. To join us and/or learn more about the event, see below

Steps to Join:

  • Twitter Town Hall: Go to www.tweetchat.com. Log in using your Twitter ID.
  • Enter the hashtag to join the conversation: #IFSsurvey

Details:

  • Date: Thursday, November 3rd
  • Time: 10:00 am PST/1:00 pm EST
  • Hosted by: Banking.com Staff (@bankingdotcom) and Al Ko, Senior Vice President of Consumer Solutions for Intuit Financial Services (@financeworks)

If you are planning on attending the Twitter Town Hall and interested in receiving the key findings of the survey in advance, please email the Banking.com editors at info@banking2020.com. Additionally, if you are interested in submitting a question prior to the Twitter Town Hall, DM us on Twitter.

We hope to “Tweet” with you on November 3rd!

Banking.com Turns 1

One year ago, we launched Banking.com and kicked off Intuit Financial Services’ Third Annual Online Financial Management Survey. Over the past year, we’ve gotten the opportunity to connect with a variety of industry thought leaders via our blog and Twitter channel.

Some key highlights for our staff included when we hosted the report on the Future of Financial Services, and held a corresponding Twitter Town Hall to discuss the findings with our readers and followers. Over the past year we’ve delved into many areas, covering topics from mobile banking, to banking regulation, social media and more; and we’re looking forward to expanding our coverage in the next year.

For our readers who joined us later in the year, and for our readers from day-one, we will be hosting Intuit Financial Services’ Fourth Annual Financial Management Survey in early November, along with a corresponding Twitter Town Hall. Stay tuned for dates and times, and interesting stats on the banking industry you have come to know and enjoy from the Banking.com Staff.

Happy Birthday Banking.com!

 

 

 

 

 

 

 

 

 

 

 

Image: Salvatore Vuono / FreeDigitalPhotos.net

Poll: Remote Deposit Capture: Would you prefer to deposit checks via a mobile phone, or desktop computer?

Thank you to Affinity Federal Credit Union for submitting this month’s question!

If you could only choose one, which would you prefer: depositing a check via a remote deposit capture application on a mobile phone or via a desktop computer with a scanner?

 

Interested in submitting a poll question on Banking.com? Email us at info@banking2020.com or DM @bankingdotcom on Twitter.

American Bankers Association Survey: Online Banking on the Rise

The American Bankers Association released its annual survey last week, revealing that online banking is on the rise, while mobile banking has slowed in the last year. The most surprising statistic from this year’s survey is rise of online banking amongst baby boomers. For the first time, 57 percent of banking customers 55 and older said they prefer to bank online versus at a bank branch or via an ATM. This is up from 20 percent 2010, a significant gain amongst the baby boomer population.

Other interesting survey statistics include:

  • Among all adults, 62 percent said that they like online banking best, up from 36 percent last year
  • Only 1 percent of adults said that they liked mobile banking best, down from 3 percent last year
  • With younger consumers, ages 16 to 34, only 4 percent said that they preferred mobile banking to other methods
  • Telephone and banking by mail are losing popularity. Only 3 percent said that they prefer telephone banking, and only 6 percent said that they prefer mail banking

Are these statistics in-line with your customer/member base? Do you think the popularity of mobile banking is on the decline? Let us know in the comments section below, or Tweet @Bankingdotcom.

Recent American Banker Polls Show Backlash Against Banking Regulation

After our recent survey and interview with Greg  Jacobi of WebsterBank, the Banking.com staff has become increasingly interested in polls that other banking publications are hosting.

American Banker, which frequently surveys visitors on the publication’s homepage, has extensively covered the recent federal financial laws, particularly concerning the Consumer Financial Protection Bureau and the Dodd-Frank Act. One poll focused on President Obama’s choice of Richard Cordray to lead the Consumer Financial Protection Bureau over Elizabeth Warren. The results displayed an overwhelmingly negative response, with 62 percent of participants indicating they believe Cordray is a “greater threat to bankers than Elizabeth Warren.”

The publication took a more lighthearted look at the Durbin ruling in the Dodd-Frank Act, posing the question: “Which movie title best represents the Dodd-Frank Act?” Readers were incensed by the Federal Reserve Board’s decision, and it was a close race, with One Flew Over the Cuckoo’s Nest narrowly beating out The Good, the Bad and the Ugly.

You can read American Banker’s full list of polls here.

Do you agree with the results of these polls? What questions would you like answered in the next Banking.com survey? Tweet @bankingdotcom or let us know in the comments below.