Mobile transaction network mBlox has released the results of consumer research that found mobile banking to have gained a foothold in the UK and US markets. The survey found that 37% of UK mobile phone users and 25% of US mobile phone users have adopted mobile banking services. The study was carried out by research firm OnePoll between 15 - 18 March 2010, among nationally representative samples of 1,798 US and 1,000 UK mobile phone users aged 16 and above.
When asked which banking method users preferred, respondents found mobile banking more convenient and easier to use than telephone banking (voice and touchtone) by a margin of three to one in the US, and by a 1% margin in the UK. Conversely, when asked about branch banking, fewer respondents selected it as their favorite method of banking, with only 2% in the US and 3% in the UK choosing it as their preferred method.
The research revealed that the greatest benefits of mobile banking for consumers (52% in the US and 46% in the UK) are the ability to “access banking services anywhere, at any time,” as well as “convenience” and “time-saving.”
“It’s clear from the findings of this survey that consumer behavior is shifting to adopt the capabilities afforded by mobile banking,” says mBlox CEO, Andrew Dark. “We are seeing strong interest in the mobile sector from a wide variety of industries, including transportation, retail, marketing and entertainment, which shows there is an opportunity for financial services to benefit from this increasingly popular channel.”
The research also identified the services consumers are most interested in using on their mobile phones. In both countries, respondents rated as their top four services: daily balance notifications; suspicious activity notifications; fraud alert notifications; and low balance, overdraft, and credit limit notifications. US respondents also cited as a key service, the ability to transfer funds between accounts, while UK respondents favoured the ability to view statements and transaction history.
“Consumers today want real-time, round-the-clock access to their finances and are demanding a higher level of convenience for managing such information,” says Soren Bested, Managing Director of Monitise Americas, an mBlox partner providing mobile banking and payment services to N. American financial institutions. “It’s no surprise that the ‘anywhere, anytime’ aspect of mobile banking was one of the greatest benefits found in the mBlox research, and we see SMS as a key ingredient in providing that convenience factor. Whether it be requesting an account balance or receiving a text alert notifying consumers of activity on their account, SMS provides a method of financial control.”
The research also highlighted two factors, however, that may be slowing down the growth of mobile banking services. These top two reservations were identified by respondents as “security” (33% in the US, 49% in the UK and “cost” (31% in both the US and the UK.).
“We understand that security will be a consumer concern with any banking service. For this reason, mBlox continues to invest significant sums in its data centers, processes and networks to ensure that it is on par with the latest financial security standards,” says Dark. “With regards to cost, SMS is an inherently cost-effective solution for the transmission of information, with minimal or no cost to the end user. Our ability to facilitate the safety and integrity of consumer’s financial information is paramount and is what sets us apart from our competitors. The industry needs to work together to educate users to the secure and cost-effective nature of mobile banking services and we at mBlox intend to lead in this respect.”
When asked which banking method users preferred, respondents found mobile banking more convenient and easier to use than telephone banking (voice and touchtone) by a margin of three to one in the US, and by a 1% margin in the UK. Conversely, when asked about branch banking, fewer respondents selected it as their favorite method of banking, with only 2% in the US and 3% in the UK choosing it as their preferred method.
The research revealed that the greatest benefits of mobile banking for consumers (52% in the US and 46% in the UK) are the ability to “access banking services anywhere, at any time,” as well as “convenience” and “time-saving.”
“It’s clear from the findings of this survey that consumer behavior is shifting to adopt the capabilities afforded by mobile banking,” says mBlox CEO, Andrew Dark. “We are seeing strong interest in the mobile sector from a wide variety of industries, including transportation, retail, marketing and entertainment, which shows there is an opportunity for financial services to benefit from this increasingly popular channel.”
The research also identified the services consumers are most interested in using on their mobile phones. In both countries, respondents rated as their top four services: daily balance notifications; suspicious activity notifications; fraud alert notifications; and low balance, overdraft, and credit limit notifications. US respondents also cited as a key service, the ability to transfer funds between accounts, while UK respondents favoured the ability to view statements and transaction history.
“Consumers today want real-time, round-the-clock access to their finances and are demanding a higher level of convenience for managing such information,” says Soren Bested, Managing Director of Monitise Americas, an mBlox partner providing mobile banking and payment services to N. American financial institutions. “It’s no surprise that the ‘anywhere, anytime’ aspect of mobile banking was one of the greatest benefits found in the mBlox research, and we see SMS as a key ingredient in providing that convenience factor. Whether it be requesting an account balance or receiving a text alert notifying consumers of activity on their account, SMS provides a method of financial control.”
The research also highlighted two factors, however, that may be slowing down the growth of mobile banking services. These top two reservations were identified by respondents as “security” (33% in the US, 49% in the UK and “cost” (31% in both the US and the UK.).
“We understand that security will be a consumer concern with any banking service. For this reason, mBlox continues to invest significant sums in its data centers, processes and networks to ensure that it is on par with the latest financial security standards,” says Dark. “With regards to cost, SMS is an inherently cost-effective solution for the transmission of information, with minimal or no cost to the end user. Our ability to facilitate the safety and integrity of consumer’s financial information is paramount and is what sets us apart from our competitors. The industry needs to work together to educate users to the secure and cost-effective nature of mobile banking services and we at mBlox intend to lead in this respect.”
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