consumer behavior, forecasts and what this means for your mobile roadmap

Michael J. McEvoyManaging Director, ath Power Consulting

www.athpower.com

• 240 banks and credit unions

• 1,527 mobile banking users

• Audited actual mobile banking offerings

Ads 5%

Other 11%What prompted you to use your mobile banking application?

Big Opportunity for Banks to Improve Adoption

Wanted to Try it74%

My Bank Told Me10%

More Interaction / More Engaged

Customer

Engaged Customers are

More Loyal

Improving Retention and

Share of Wallet

Retaining the Customer

• 3 in 4 mobile banking users surveyed indicate no quantifiable risk of switching their accounts to another bank within the next 2 years

Engaging the Customer

• 72% of mobile banking customers ‘check-in’ at least once a week

Acquiring the Customer

• 7 in 10 mobile banking customers place high importance on mobile offering in choice of bank

Why Mobile Banking Adoption and Usage Matter

5%

16%

32%

19%

20%

8%

Multiple times a day

Daily

2-3 times a week

Once a week

1 to 2 times a month

Less than once a month

How often do you use mobile banking

with your bank?

72%

Mobile Customers Are More Engaged, Loyal

74%

58%

49%44%

41% 40% 40% 40%37% 37% 36% 35% 34% 32% 31%

26%22%

0%

20%

40%

60%

80%

100%

% High Satisfaction with Mobile Banking Relationship

Few Institutions Have Distinguished Themselves in Mobile Banking

3%0%

14%

6%

38%

7%

23%

14%

0%

25%

50%

Text interaction with abanking agent

Video interaction with abanking agent

A tutorial on mobilebanking features

Banking advice

Available Feature Would Like

Gap in User Support Needs Addressing

12%

16%

17%

19%

56%

61%

62%

Apply for a mortgage

Purchase a CD

Apply for an auto or other loan

Invest money in stocks or bonds

Conduct debit transactions at a store orrestaurant

Receive special offers, promotions,coupons

Store and maintain rewards points

Percent Who Would Use Feature

Improving Value-Added to Consumers Will Help Adoption

81%

0%

0%

1%

1%

4%

13%

0% 20% 40% 60% 80% 100%

Not willing to pay for service

> $15

$12-15

$9-11

$6-8

$3-5

$1-2

1 in 5 Users Willing to Pay for Today’s Mobile Banking

Improve Customer Experience to Help Adoption and Generate Revenue Potential

• Determine what the gaps are in your customers’ mobile banking experience

• Enable personalization

• Address support issues

• Focus on value-added functionality – ones unique or best suited to mobile

• Finally, communicate your mobile offering to your customers… how are you currently selling mobile banking!?

Michael J. McEvoy617-243 9500mmcevoy@athpower.com