Abstract
Overview
Javelin' s 2008 US Mobile Banking Benchmark Study examines banks and credit unions on consumer mobile banking offerings within three categories: Access, Security and Features. Top US financial institutions (FIs), asset-ranked were mystery-shopped for their mobile banking service offerings, using Web and phone data collection methods. Of the 135 FIs searched in early 2008, 23 provided mobile banking solutions widely accessible to consumers. Offerings were reviewed for twenty functions in all: three forms of Access - Wireless Application Protocol (WAP)/browserbased, SMS/Text, and downloadable/embedded applications; four security formats and thirteen banking features.
Primary Questions
- What is the value proposition for mobile banking?
- What will motivate consumers to adopt mobile banking?
- How are consumers utilizing mobile banking currently?
- What are financial institutions offering now in mobile banking, and how do these offerings benchmark to Javelin' s three criteria for mobile banking: Access, Features and Security?
- What are the strengths and weaknesses of the main operating systems for access: SMS/text, WAP/browserbased and downloadable/embedded applications?
- What vendor solutions currently exist?
- Who are the key vendors and partners in the mobile solutions space and what platforms/features are they offering?
Financial institutions: Online banking, mobile banking, marketing, mobile banking platform providers, mobile payment vendors, mobile network operators, and new entrants
Methodology
This report uses phone-based mystery shopper investigations, as well as Javelin' s review of Web sites from the financial institutions included in the survey. Javelin chose these methods specifically because the lack of full availability on Web sites or awareness for specific product offerings among trained branch personnel can render them effectively unavailable to account holders. The data were collected during January to March of 2008.
The initial rounds of research were performed over the phone with customer service representatives and using each individual FI' s Web site. One hundred thirty-five of the top US banks, sorted according to asset holdings from Q4 of 2007, were surveyed using the above methods to determine whether or not they offered mobile banking services. Twenty-three FIs offered consumer-facing, full-function mobile banking services as of January 20, 2008.
For these 23 financial institutions, researchers called each bank' s or credit union' s senior customer service representatives in general customer service multiple times, requesting an experienced specialist using mystery shopper techniques. The total quantity of required CSRs (on a per FI basis) was recorded, along with the CSR' s name or employee number, when available, as well as the date and time of the call. The required number of calls on a per FI basis ranged from four to eight, with the average being six to assure high-quality results.
To receive credit, the service must fit specific criteria. In cases where a service is not provided to all the FI' s customers, credit is awarded if the service is provided to the majority of the customer base.
FIs were benchmarked according to their services' basic Access (4), Security (4 - or 3 combined), and Features (13) capabilities for 20 functions in all. Future versions of this report will build upon this research incorporating new capabilities as they become available.
This report also includes research from Javelin' s Mobile Update 2008; Interactive Financial Messaging 2007; Mobile Banking 2007; 2007 and 2008 Annual Household Finance Study, and the February, March, and October 2007 and March 2008 Consumer Surveys.
Access:
Financial institutions were reviewed for the Access section of the landscape based on allowing access along each of these three operating systems:
- 1) WAP/Browser-based,
- 2) SMS/Text message banking,
- 3) downloadable/embedded application/SIM card.
Security:
Financial institutions were reviewed for four separate (or three combined) security criteria including:
- 1) multifactor authentication, either
- 2) automatic time-out procedures or
- 3) remote deactivation, and
- 4) encryption.
Features:
Financial institutions were reviewed for thirteen features of most immediate marketing value to the FIs within mobile banking.
These features included the ability to
- 1) check balances and
- 2) account history for savings and checking accounts,
- 3) check balances and
- 4) account history for credit cards,
- 5) the ability to view other accounts,
- 6) bill pay,
- 7) funds transfer between personal accounts,
- 8) funds transfer between customers at the same FI,
- 9) funds transfer between two different FIs,
- 10) ATM/Branch locator functions,
- 11) opening of new accounts via the mobile device,
- 12) text message alerts, and
- 13) the ability to view an FI' s current rates.
Table of Contents
- Overview
- Primary Questions
- Findings And Analysis
- Methodology
- Executive Summary
- Value Proposition
- Expand Access Via Multiple Platforms To Draw In Consumer Groups
- How Setup Affects Access
- Utilize The Mobile Phone Channel For Setup
- Tech Savvy And Unbanked Show Increased Likelihood To Use Mobile Banking
- Security Is The Sticking Point For Consumers Adoption
- How Consumer' s Risk Changes By The Channel
- What Transactions Are Showing Up Now On The Mobile Banker' s Screen
- Access, Security And Features-What Banks Are Offering Now
- Access: What Banks Are Offering Now
- The Big Ten FIs And What They Are Offering
- Security: What Banks Are Offering Now
- Features: What Banks Are Offering Now
- Basic Functions
- Intermediate And Advanced Functions
- Opportunities For Improvement
- Unique Features
- Access: What Banks Are Offering Now
- How To Assess The Three Access Platforms
- Penetration Rates
- Cost Differences
- Partnerships With Wireless Carriers
- Ease Of Setup And Use
- Mobile Browsers
- Security Levels
- Tracking Usage Patterns Of Current Mobile Bankers
- Best Functions For Each Application
- Mobile Service Platform Providers
- Appendices
- Related Research
- Companies Mentioned
Table of Figures
- Figure 1: Screenshot from Kiwibank' s Mobile Banking Demo
- Figure 2: Mobile Phone Features Used by Mobile Bankers vs. All Consumers with Mobile Phones
- Figure 3: Online Bankers vs. Non-Online Bankers Likelihood to Conduct Mobile Banking
- Figure 4: Likelihood to Use Mobile Banking by Consumer Groups
- Figure 5: Top Consumer Security Concerns about Mobile Banking
- Figure 6: How the Availability of New Channels of Banking Affects Consumer Risk Behavior
- Figure 7: Tech CU' s Multifactor Authentication Log-In Process
- Figure 8: Mobile Banking Activities by Mobile Bankers Last 30 Days vs. Last 12 Mos.
- Figure 9: Mobile Offerings-Functions to Be Reviewed
- Figure 10: Percentage of Financial Institutions Providing Access by Platform
- Figure 11: Chase Mobile' s Text Message-based Mobile Banking Solution
- Figure 12: Top Ten Financial Institutions and their Planned Mobile Operating Systems
- Figure 13: Percentage of Financial Institutions Meeting Security Criteria
- Figure 14: Percentage of Financial Institutions Meeting Mobile Banking Service Features Criteria
- Figure 15: Bank of Stockton' s Mobile Banking Demo
- Figure 16: Platform Access Comparison
- Figure 17: Types of Mobile Activity by Availability, Enablement of Data Plan, and Usage
- Figure 18: Mobile Wireless Carriers by Market Share
- Figure 19: Platform Security Comparison
- Figure 20: Platform Features Comparison
- Figure 21: Mobile Services Platform Providers
- Figure 22: Forecast of Availability, Use and Adoption of Mobile Channel for Banking, 2007-2012
- Figure 23: Methods of Mobile Access by Financial Institution, Alphabetically
- Figure 24: Security Factors Adopted by Institution
- Figure 25: Total Features, by Institution, Alphabetically
