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The Future Of Mobile Banking Fueled By Smartphone Cameras

The impetus for financial institutions to provide mobile remote deposit capture and mobile photo bill pay is growing. A full 58% of iPhone users finding mobile deposit desirable, and 42% of mobile bankers say they’d like to use photo bill pay.

Mobile remote deposit has created a buzz and it is a surprisingly popular service among consumers. For many consumers looking for a reason to try mobile banking, remote deposit seems to fit the bill.

Consumer desire for and use of mobile remote deposit capture (RDC) is strong. Currently, 40% of all consumers and 66% of mobile bankers find mobile RDC desirable. 25% of all consumers and 48% of mobile bankers say they have used mobile deposit in the past 90 days. Another 15% want it but their financial institution doesn’t offer it.

This according to a report from Javelin Strategy & Research, who also says that 64% of the top 25 retail banks in the U.S. are now offering mobile deposit. Many of them rolled it out in the past year.

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As of 2012, the two largest smartphone operating systems were Android and iOS at 48% and 32% market share, respectively.

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New mobile banking imaging services will also have good uptake. Javelin predicts that one in every five consumers will use mobile photo bill pay.

javelin_mobile_photo_bill_pay_consumer_adoption

This is Just the Beginning: More Opportunities, More Work Ahead

As the number of those toting smartphones surpasses the 50% threshold, there are new opportunities and challenges for financial institutions to re-engineer the mobile banking experience around the phones’ camera technology.

“With consumer mobile ownership and adoption on the rise, financial institutions cannot wait to implement and offer key mobile services to their broad customer base,” said Mary Monahan, EVP and Research Director for Mobile at Javelin. “We are finding usage of mobile remote deposit capture growing, with one in four smartphone or tablet owners using this service in the past 90 days.”

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But Monahan says banks and credit unions can’t rest on their laurels. Financial institutions that think simply providing mobile banking is enough will be sorely mistaken.

“To maintain a solid relationship with their customers, financial institutions need to hurry before consumers come expect the service, rather than delight in its offering,” Monahan cautions.

Javelin says mobile imaging solutions (those built around the cameras that come standard in all smartphones) can help bridge the gap. Typing in a credit card number in a mobile environment, for instance, is an impediment to sales conversions.

Javelin strongly encourages all retail financial institutions to make mobile apps upgrades with mobile imaging technologies a top priority.

Javelin Strategy & Research’s “2013 Mobile Imaging” report outlines which new mobile banking technologies retail banks and credit unions should offer to reach broad adoption. The study evaluates consumers’ preferences and issues with mobile RDC, mobile photo bill pay, and provides financial institutions with insight into how to effectively develop and implement mobile imaging services.

The report is based on the analysis of the top 25 financial institutions by deposit size and three online surveys of more than 11,000 consumers. The report contains 36 pages and 18 graphs.

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