Mobile Banking 3
Research Paper New Research Reveals Untapped Market for Mobile Banking Among Offline Consumers
Mobile Channel Addresses Offline Consumers’ Needs for Frequent Transactions While Reducing Bank Channel Costs
In the face of turbulent economic conditions and significant cost pressures, U.S. financial institutions, like their counterparts around the world, are focusing on improving the profitability of their customer relationships, lowering channel costs and enabling more self-service electronic banking. In recent years, the rise of mobile banking has opened a new path for financial institutions to lower the cost to serve their customers, improve their competitive position and increase customer acquisition and loyalty. At the same time, mobile banking establishes a foundation for delivering future products and services that can be monetized, such as mobile payments and remittances. Despite this new ROI opportunity, most institutions have primarily utilized this new channel to drive mobile banking adoption among current online banking customers. Therein lies the opportunity.
Many institutions have implemented mobile banking merely as an extension of their online channel. In fact, customers must be enrolled in online banking before they can even gain access to the mobile channel. This approach overlooks an important segment of the banking public: The estimated 55 million non-online-banking households in the U.S. who choose not to bank online regularly or at all.1 Similar metrics are in place in other geographies outside of the U.S. New survey findings suggest that financial institutions should pay more attention to this non-online-banking consumer segment as a potential target audience for their mobile banking services. The survey was commissioned by VeriSign, Inc. and conducted by Palmer Research in collaboration with VeriSign, Fiserv and M-Com. The research shows these non-online-banking consumers have clear interest in using mobile banking services. Sixty-percent
Mobile Channel Addresses Offline Consumers’ Needs for Frequent Transactions While Reducing Bank Channel Costs
In the face of turbulent economic conditions and significant cost pressures, U.S. financial institutions, like their counterparts around the world, are focusing on improving the profitability of their customer relationships, lowering channel costs and enabling more self-service electronic banking. In recent years, the rise of mobile banking has opened a new path for financial institutions to lower the cost to serve their customers, improve their competitive position and increase customer acquisition and loyalty. At the same time, mobile banking establishes a foundation for delivering future products and services that can be monetized, such as mobile payments and remittances. Despite this new ROI opportunity, most institutions have primarily utilized this new channel to drive mobile banking adoption among current online banking customers. Therein lies the opportunity.
Many institutions have implemented mobile banking merely as an extension of their online channel. In fact, customers must be enrolled in online banking before they can even gain access to the mobile channel. This approach overlooks an important segment of the banking public: The estimated 55 million non-online-banking households in the U.S. who choose not to bank online regularly or at all.1 Similar metrics are in place in other geographies outside of the U.S. New survey findings suggest that financial institutions should pay more attention to this non-online-banking consumer segment as a potential target audience for their mobile banking services. The survey was commissioned by VeriSign, Inc. and conducted by Palmer Research in collaboration with VeriSign, Fiserv and M-Com. The research shows these non-online-banking consumers have clear interest in using mobile banking services. Sixty-percent