Previous Javelin research determined that smartphone owners are more likely to try mobile banking, see its value, use it daily, make stickier transactions and rarely abandon it. “Our data show that mobile banking is already a source of profitability for financial institutions, through account-switching and fraud safety. Downloadable apps for Androids, iPhones and other smart phones are creating a whole new ‘always-on user’ experience,” said James Van Dyke, President & Founder of Javelin Strategy & Research.
To capitalize on the confluence of the predominance of smartphones and on-the-go consumers who are more often using their mobile devices as their primary communication tool for conducting personal and business affairs, financial institutions need to act now to create mobile banking strategies that offer triple play modes of access: mobile browser, SMS text banking and smartphone applications.
The Mobile Banking Vendor Analysis report discusses these three modes and includes guidance for financial institutions for developing mobile banking strategies. It also evaluates 12 mobile banking vendors on the three modes of mobile banking services, the depth of their product functionality and the existence of strategic partners that can assist with sales and implementation of their mobile banking offering. ClairMail and M-Com/Fiserv, which each scored nine out of a possible 10 points, took Best in Class top honors. Other vendors that Javelin evaluated are FIS, Firethorn (Qualcomm), Fundamo, Harland Financial Solutions, Jack Henry & Associates, mFoundry, MShift, Monitise Americas, Sybase and Tyfone.
Selected Key Report Findings – 2010 Mobile Banking Vendor Analysis
Financial institutions need to move beyond treating mobile banking as an extension of online banking.
Mobile web is still the preferred way to access mobile banking data, but consumers are moving toward smartphone applications.
The top four financial institutions have implemented mobile banking initiatives and vendors now need to move down-market to mid- and small-sized FIs and credit unions.
The Hispanic and Asian populations in the U.S. – which are frequent users of mobile banking –are growing and financial institutions can tap these markets by offering multilingual mobile financial services.
Consumer adoption of mobile banking has not met market expectations.
“While mobile banking originally got off to a slow start, smartphones have ignited consumer interest and the iPad may be the next technology disrupter that catapults demand. Savvy FIs and vendors should craft or update their strategies to include mobile banking enrollment that can take place via the device without requiring an online banking registration,” said Mary Monahan, Managing Partner and Research Director. “This will position them to cater to current and new customers, who will demand mobility and 24x7 access to their accounts, whenever and wherever they are.”
Javelin’s 2010 Mobile Banking Vendor Analysis report is based on data collected online in July 2009 and March 2010 from two random-sample panels totaling more than 8,211 consumers. The data is also based on information collected during April and May 2010 from executive interviews and surveys of four financial institutions and 12 vendors.
About Javelin Strategy & Research
Javelin provides superior direction on key facts and forces that materially determine the success of customer-facing financial services, payments and security initiatives. Our advantages are rigorous process, independent position and expert people. For more information about this or other Javelin reports, please visit www.javelinstrategy.com/research or contact Liz Travers at (925) 225-9100 ext. 31 or etravers@javelinstrategy.com.
Source: Company press release.
