By: Steven Welling, Project Director
With mobile banking continuing to rise in popularity, the financial services team here at Morpace wanted to look a bit further into mobile banking usage and understand what features consumers would most like to see added.
In our monthly Omnibus, we found that increased mobile banking usage among consumers is associated with higher satisfaction with their primary bank, suggesting that introducing customers to mobile banking and/or providing additional tools within mobile banking may have a positive effect on overall satisfaction.
The Federal Reserve Board’s Division of Consumer and Community Affairs (DCCA) conducts a yearly study about consumer and mobile financial services. (You can find the most current study—released in March 2015— on the Federal Reserve Board’s website here.)
Many of the findings from this survey confirm the understanding we have about mobile phones and banking, including the top reasons why some consumers do not use mobile banking. These include:
- Their needs are already met
- They don’t see a reason to use it
- They are concerned about security
We investigated this further and looked at not only consumer interest in mobile banking, but also their concerns. We considered if all consumer concerns were alleviated, what exactly would create the most interest in using mobile banking? We created an exercise to rank the importance of various enhancements to determine the relative magnitude of the impact when it comes to encouraging mobile banking usage.
We asked consumers: For those who currently use mobile banking, what would increase their usage? For those who do not use mobile banking, what would increase their likelihood of using mobile banking?
We found that not only were some form of incentives the top choice, but the relative magnitude was quite substantial. In fact, those already using mobile banking are over four-times as likely to increase their usage due to some form of an incentive as the second most important, fingerprint authentication.
While incentives are still the most important for those who have never used mobile banking, they are not as strong of a motivator for increasing the use of mobile banking. Two-factor authentication (using two separate security verifications to login), fingerprint authentication, and live 24/7 support are also strong influencers when it comes to introducing consumers to mobile banking.
These findings show us that the motivation for mobile banking is not as simple as just introducing them to the app. Individuals have various reasons as to what would make them consider mobile banking or increase their usage. These factors need to be taken into consideration when a financial institution is trying to promote their mobile banking capabilities.
While these findings provide more insight into understanding mobile banking usage, we plan to explore this further by examining how the results would change if incentives were not an option. If a financial institution is unable to offer incentives, how much do the rankings change and how does the relative magnitude of each change as well?
As we continue to monitor and analyze these results we will make sure to keep you up to date on our findings. If you would like to learn more about this research and hear about what our future results tell us, make sure to follow our blog or contact our financial services team here at Morpace.