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Mobile Banking Now Vital To Customer Acquisition

Mobile banking used to be a value-added service that differentiated one bank from another. Now mobile banking drives consumer demand.

By Rob Rubin, Managing Director, Novantas

Since the third quarter of 2010, interest in mobile banking as a “must have” feature among those consumers actively shopping for new checking accounts has grown by a whopping 63%. In January 2013, over 18% of all shoppers that used the comparison tool on FindABetterBank.com indicated mobile banking is a “must have” feature.

A survey recently fielded on FindABetterBank uncovered that 88% of shoppers who said mobile banking is a “must have” feature are already mobile banking users. Therefore, as more consumers download their bank’s mobile apps and begin using them, you can expect the number of consumers demanding mobile banking when they’re shopping for a new institution to increase steadily. Few people, however, defect from an institution simply because mobile banking isn’t offered.

Banks and credit unions have raced to catch up with demand. In Q3 2010, fewer than 30% of the institutions listed on FindABetterBank offered a mobile banking app versus over 82% of institutions on the site today.

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Insights from Rob RubinRob Rubin is Managing Director of Novantas Data Services. His research leverages insights captured from thousands of bank shoppers every day while they are actually thinking about- and in the process of shopping for a new bank.

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Comments

  1. Only a few short years ago Forrester Research predicted that “one in five US adults will be using mobile banking” by 2015. The astonishing rate of consumer adoption of smartphones and mobile banking has left many community banks and credit unions in the all-too-familiar place of playing catch up. Survey results released last November by the Independent Community Bankers of America (ICBA) showed only 37% of community banks offered mobile service, with another 44% planning to offer it in the next 24 months. As this article points out, mobile banking has become a driver of consumer demand. It is time to move beyond concerns over regulatory compliance – mobile is a ‘must have.’

  2. Jeremy Hamilton says:

    I would agree, it is a “must have”! With a small child and not a lot of time, it makes life a little easier having those numbers in my hand. Traditional bank hours don’t fit my schedule anymore.

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