Abstract
Overview
The Apple iPhone and the T-Mobile' s G1 phone, the first Google-powered Android
phone, are fueling interest in smartphones among users who are young, affluent
and increasingly mobile - creating an enticing market segment as banks
wrestle with whether to build a mobile-banking platform around SMS texting, a
browser or a downloadable application. This report analyzes Javelin consumer
data to profile the mobile behaviors of smartphone owners, high-income
Americans, college-age customers, and other consumers who are most likely to
become first adopters and spread the word to friends, family and co-workers.
It explores how to best build a platform using one or more of the
mobile-banking platforms to suit different types of consumers. And the report
includes a Q&A with Bank of America executive Douglas Brown, who discusses the
strategies that have led to the banking giant' s immensely successful program,
including how the firm recently reached a new milestone of 1.3 million
mobile-banking customers, why it added a downloadable application to its mix,
and why wireless carriers are a “critical component” to the
success of mobile banking.
Primary Questions
- Which consumer segments are most likely to be first adopters and heavy
users of mobile banking?
- Which platform - SMS texting, a browser or a downloadable application -
has the edge with first adopters?
- How frequently do likely adopter consumer segments conduct mobile-banking
transactions on each platform, and what are their most common transactions?
- Should banks and credit unions initially cater to smartphone owners? Who
buys smartphones - and why are they “stickier” mobile-banking
customers?
- Which platform appeals to smartphone owners the most?
- Which platform is most likely to clear the three main hurdles of mobile
banking?
Methodology
This report is mainly based on data collected online from a random-sample
panel of 2,714 respondents in March 2008. The survey targeted respondents
based on representative proportions of gender, age and income compared to the
overall U.S. online population. Overall margin of sampling error is
±1.88 percentage points at the 95% confidence level.
This report is also based on data collected online from a random-sample panel
of 2,350 households in March 2008. The survey targeted respondents based on
representative proportions of gender, age and income compared to the overall
U.S. online population. The overall margin of sampling error is ±2.02%
percentage points at the 95% confidence level. Secondary data from public
sources, such as the US Census Bureau and the Bureau of Labor Statistics,
forms part of the projections.
This report is also based on data collected online from a random-sample panel
of 2,339 respondents in September 2008. The survey targeted respondents based
on representative proportions of gender, age and income compared to the
overall U.S. online population. The overall margin of sampling error is
±2.03 percentage points at the 95% confidence level.
Table of Contents
- Overview
- Primary Questions
- Findings and Analysis
- Methodology
- Executive Summary / Recommendations
- Mobile Banking is Ready to Take Off
- Mobile Banking: Where Do You Start?
- Bank of America Q&A
- An Argument for Targeting Smartphone Users
- Smartphone Owners Are ' Sticky' Customers
- Who Buys Smartphones - And How Do They Use Them?
- Which Mobile-Banking Platform Has an Edge?
- Chase Mobile: Ahead of the Curve
- Which Platform Is Most Likely to Clear the Hurdles of Mobile Banking?
- Appendices
Table of Figures:
- Figure 1: More Americans Have Cell Phones Than Internet Access
- Figure 2: Bank of America Browser vs
- Figure 3: One in Seven Consumers Owns a Smartphone - So Far
- Figure 4: Smartphone Owners Are More Likely to Try Mobile Banking
- Figure 5: Smartphone Owners Use Mobile Banking Daily - and Rarely
Abandon It
- Figure 6: Smartphone Owners Are More Likely to Make Stickier
Transactions
- Figure 7: Smartphone Owners Are More Likely to See Value of Mobile
Banking
- Figure 8: Smartphones Ownership by Age
- Figure 9: Smartphone Ownership by Income
- Figure 10: Smartphone Owners Treat Devices Much Like a PC
- Figure 11: Smartphone Owners Buy Unlimited Data or Text Plans
- Figure 12: Mobile-Banking Usage by Demographic Segment
- Figure 13: Texting Is Not Just For Young Consumers Any More
- Figure 14: Which Application Do Active Mobile-Banking Customers Use
Most?
- Figure 15: The Most Common Transactions For Each Platform
- Figure 16: Which Application Do Mobile Bankers Use Most Frequently?
- Figure 17: Why Consumers Don' t Mobile Bank (By Age)
- Figure 18: Which Technology Do Consumers Believe Is Most Secure?
- Figure 19: How Many Consumers Carry Text or Data Plans?
- Figure 20: Downloading Content by Age
- Figure 21: Smartphone Usage by Age
- Figure 22: Mobile-Phone Activities by Age
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