Mobile Banking: The New American Addiction

INSPIRED TO HELP YOU SUCCEED

www.carlisleandgallagher.com │

Mobile Banking: The New American Addiction

January 2015

U.S. Mobile Banking Lifestyle Study

#CGDigital I @InspiredbyCG

© 2015 Carlisle & Gallagher Consulting Group. Proprietary and Confidential. INSPIRED TO HELP YOU SUCCEED2

1. How quickly is mobile banking accelerating?

2. What devices do consumers prefer for mobile banking? Is that changing?

3. How many devices will people own in the future?

4. What are the implications of mobile banking’s growth to financial institutions?

5. What investments must financial institutions make in the current environment?


Living a Mobile Banking Lifestyle:

Key Questions Driving CG’s

Research


“Consumers are driving and banks are just the passengers .

If you don’t get it right, they’ll delete

your app.”

“Consumers expect more from a mobile

device than a laptop.”

“Start anywhere, finish anywhere – Consumers are

looking for the same experiences across

many devices.”

“Larger screen size provides more opportunity for

content.”

“We will consider our mobile app successful when consumers can

open an account, have picture capability, be

able to upload documents, etc.”

“The most important real estate is on a

consumer’s phone. Different form factors

present targeting opportunities for

marketing.”

#CGDigital I @InspiredbyCG What Financial Institutions Are Saying…

- Leading Online U.S. Bank - Top 20 Credit Card Issuer - Top 6 U.S. Bank

- Top 6 U.S. Bank - Top 5 Global Bank - Leading Online U.S. Bank


29%

47%

25%

18-34

35-50

Over 50

Survey Snapshot

• 1,005 survey responses

• All respondents live in the U.S. or are U.S. citizens

• The survey was conducted online

• Participants were recruited from an online research panel

• Participants were required to be over 18 years of age

• Survey gender was representative of the U.S. population (48% male, 52% female)

Household Income

14%

26%57%

3% Less than $49,999

$50,000 to $99,999

$100,000 to $249,999

$250,000 or more

Overall mix of respondents reflects a higher income base

Distribution of respondents across age segments

Age Distribution

64% own three or more device types

Device Types Owned#CGDigital I @InspiredbyCG

Device Types: Laptop, Tablet, Phablet, Smartphone

Four or more

device types

Three device types

Two device types

One device types

5% 2%

59%

34%


52%of consumers are

doing more mobile banking than two years

ago

Mobile Banking is Hyper-Accelerating

26% access mobile banking habitually, 4 or more times a week

55% access mobile banking 2-3 times per week or more

Q16. How frequently do you use your mobile device for banking?


Q18. Compared to two years ago, how would you describe the amount of banking activities you conduct on your mobile devices?


72%of consumers are more

likely to do mobile banking if it is easy to use

Ease of Use and Features Are Driving Mobile Banking

Q19. Compared to two years ago, do the following factors make you more or less likely to use mobile banking? (1-much less likely, 5-neutral,10-much more likely)


Do the following factors make you more or less likely to use mobile banking? Less Likely Neutral More Likely

Ease of Use 4% 26% 72%

Easier to Make Payments 7% 30% 65%

Better Features 4% 32% 65%

Understanding of Features 5% 36% 59%

Confidence in Mobile Use 8% 41% 53%

Security 17% 38% 50%

Larger Mobile Devices 11% 43% 46%


In the Future…

Consumers Will Use More Devices for

Banking, Not Less

100%growth in phablet use for mobile banking over

the next 24 months, across all demographics


Phablet growth in the 25-34 (126%) & 55-70 (129%) demographic segments

is very high

Q24. Which of the following devices do you expect to be using for banking in 24 months? (2016)


Despite the Increasing Number

of Devices…

Consumers Would Prefer a Two-Device

Lifestyle

57%of respondents would strongly

prefer a two-device lifestyle

“I Would Prefer a Two-Device Lifestyle”


VERY LIMITED Less than once a

week

MODERATE 2-3 times a week

FREQUENT – 4 or more times

a week

HABITUAL– Part of my daily

routineQ22. I would prefer to have just two devices if they could fit all of my needs? Rated on a scale of 1-10. Reponses indicate percentage of respondents for 8 and above.

52%

61% 61%

67%


The typical phablet user….… is male (65%)… is younger, more than a third are 25-34 years old… uses mobile banking more than other demographics (40%)… owns more devices, on average (3 or more)… purchased their phablet with mobile banking in mind… is concerned with device attractiveness (69%)… is more likely to buy a wearable (33%)

The Phablet Phenomenon


40%of phablet owners are

habitual mobile banking users

(4 or more times a week)


84%expect to buy a

smartphone in the next 24 months

Smartphone Remains the Dominant New Purchase

Phablet

Tablet

Laptop

Smartphone

14%

25%

26%

84%

% of Total Respondents

Expected Device Purchases


Q22. What devices do you plan on purchasing?.


11%

Mobile Device Growth Will Dominate Banking During the Next Two Years


Laptop Smartphone Tablet Phablet

84%81%

52%

62%

32%

44%

5%

Q24. Which of the following devices do you expect to be using for banking in 24 months? (2016)

Q10. Which of these devices do you use for banking? (2014)

Do not use their tablet for mobile banking

today

68%Tablets are toys


There’s a Device For That

Today’s banking

customers want to do

everything on every

device that they own –

expectations are for

feature and functions to be

integrated


Laptop Tablet Phablet Smartphone


Pursue a Digital Omni-ChannelPlan for Larger DevicesMaintain a High Focus on

Online Banking

Financial institutions must give consumers seamless features and functions across all of their mobile devices. As devices continue to evolve, they will offer new opportunities and the case for Digital Omni-Channel.

Financial institutions need to have a strategy that depicts how larger devices will change customer experience. Larger devices, like the phablet, give consumers features that were undesirable on smaller smartphones, enhance online sales and enable more effective marketing.

Financial institutions must adopt a “mobile-first” approach. However, consumers still have a strong preference to use browser-based online banking on their laptops and it is imperative that financial institutions maintain, and even expand, their legacy online banking platforms.

CG’s Recommendations


Carlisle & Gallagher Consulting Group Contact Us

Carlisle & Gallagher Consulting Group 212 South Tryon Street, Suite 800, Charlotte, NC 28281O: 704.936.1600 | [email protected] | @InspiredbyCG

Byl Cameron │ Digital Practice Lead704.390.6960 │ [email protected]@bylcameron

mailto:[email protected]

http://www.carlisleandgallagher.com/

https://twitter.com/InspiredbyCG

https://twitter.com/InspiredbyCG

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Mobile Banking: The New American Addiction

Economy & Finance

Transcript of Mobile Banking: The New American Addiction