What Would it Take to Use Mobile Banking?

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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:

  1. Their needs are already met
  2. They don’t see a reason to use it
  3. 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.

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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.



Revealing Modern Truths About Fantasy Football


By Greg Deinzer, Research Director

(With input from Chris Winkler)

I love watching football, but haven’t been involved in a fantasy league for 25 years. Back then, there was no online assistance to research or draft players, or to keep track of everyone’s weekly stats.

After all, that was the job of your league’s ‘commissioner’ who conscientiously entered data into a Lotus 1-2-3 spreadsheet and then kept all the important information to himself. That’s why he always won the $100 money pool year after year.

Nowadays, it seems everyone and their mother is in a fantasy football league. So, being the good market researcher that I am, I was curious to find out more about why fantasy football is still so popular. Findings from Morpace’s September 2015 Omnibus survey of 1,001 U.S. respondents help reveal some interesting truths about fantasy football leagues.

It turns out that only 13% of all respondents are involved in one or more season-long NFL Fantasy Football leagues this year. Of those currently participating, one-half are playing in one league, over one-fourth in two leagues, and 1-in-5 is in three or more leagues.

One-in-seven people who are currently in a league are participating for the first time. (Welcome…to the jungle!) And, about one-fourth have been involved for seven or more years. (Watch it bring you to your knnn knne knees, knees.) (Guns N’ Roses ca. 1987).

More women are joining season-long fantasy football leagues than when I participated. According to our Omnibus, over one-third (36%) of those currently playing in a league are female, and one-half of them are in their first or second year.

Surprising to me is that the top reason for joining a fantasy football league isn’t to win the prize pool. Three-out-of-five play because they like the competition and one-fifth want to do something together with their spouse/partner (which defeats the whole purpose in my opinion. Maybe that’s why I’m divorced).

There are fewer musty basements to meet in anymore. All of the fantasy football leagues are now hosted online, and well more than one-half of the participants draft their team online from various locations. Bars and restaurants even advertise each summer the reasons why your fantasy football draft should be held at their establishment.

Fantasy football leagues are also not as costly as I remember. The median total spent, according to our Omnibus, is $50 including entry fees, reference books, magazines, advice, parties, etc. However, close to one-third of fantasy managers subscribe to DirecTV’s NFL ticket, and if you’re like me and also subscribe, you know that this package can sometimes require a second mortgage. That may be why the mean total spent is $196 and $347 for first and second year participants.

In total, players admit to spending an average of 5.5 hours per week managing their team(s). Combine this with the two-thirds of fantasy managers who watch 3 or more games per week (at least one-half’s worth of the game) and we have a lot of time spent (or wasted) per week.

Three-fourths of those employed admit to checking on their fantasy football team at work, averaging 3.5 hours per week ‘managing’ their teams. I think we can double that average and add a few more hours and still not be close to reality.

Like me, 7% are not currently in any fantasy leagues, but have been in the past. Unlike me, about one-half of those people ‘Have other things to do’. Five percent even admitted that they quit because it interfered with their job. Hey, whatever happened to multi-tasking?

With the barrage of commercials for “one week” fantasy games and the amount of money you can win, the 5% of all respondents and one-third of current season-long participants who report playing the weekly contests seems low. But, because of illegal use of insider information, weekly games are probably only fun and profitable for the people who work at the websites who host them.

Oh, and if you are wondering who is going to win Super Bowl 50, 12% of all respondents predict the New England Patriots will repeat as champs. Seven percent pick the Green Bay Packers. Another 7% feel that the Seahawks will come through, barring a last second interception. And a whopping 47% chose a team that I’ve never heard of – ‘Don’t know/Don’t care’.

This likely isn’t information that you will use to help your company become more profitable, but the data from this Morpace Omnibus may help you to sound smarter than your fellow fantasy football league owner. And if anything, it tells us that America’s love for football is not going anywhere (that is, if you disregard the one-half who ‘Don’t know/Don’t care’).