results from a mobile finance survey. 2 2 second survey sponsored by checkfree with fieldwork in...
TRANSCRIPT
Results from a Mobile Finance Survey
2
2
Second survey sponsored by CheckFree with fieldwork in April 2008; First survey completed in March 2006
1,007 U.S. consumers at least 18 years old each using a cell phone at least once a week completed the survey
• 30% of respondents aged 21-34 years: Gen Y respondents
• 70% of respondents aged 35+ years: Older respondents
The results represent the US online population of consumers using a cell phone and a PC using each at least once a week
Presentation consists of two chapters:
• Findings for all respondents
• Findings specific to Gen Y
The Survey
Mobile Finance among Cell Phone Users
4
4
Mobile Finance Conducted by about One Quarter of Cell Phone Users
Yes23%
No77%
Do you currently do any of these activities now
using your cell phone or other mobile device?
5%
18%
21%
24%
38%
55%
72%
0% 20% 40% 60% 80% 100%
Send/receive money individuals
Receive/pay household bills
Transfer money betweenaccounts
Locate ATM or branch
Check credit card balance/available credit
Contact customer care at FI
Check bank account balance
% of Mobile Finance Users
Which of the following activities did you do using your cell phone or other mobile device in the past month?
5
5
Interest Levels in Mobile Finance Have Increased Considerably Since 2006
35%
18%
51%
25%
31%
40%
0%
20%
40%
60%
80%
100%
2008 2006YesMaybeNo
Survey Definition of Mobile Finance
Consider that a service was offered that allowed you to do the following activities via your cell phone:
Check your bank account balancesCheck your credit card balances and/or credit available for purchaseReceive and pay your billsSend money to or receive money from friends and family Transfer money between bank accountsLocate a nearby ATM or bank branchContact customer care of your financial institution
If these financial services were available to you through your cell phone or other mobile device, do
you think you would use one of more of them in a typical month?
6
6
Checking Bank and Credit Card Account Balances Features Most Likely to be Used
9%
34%
38%
39%
39%
55%
84%
0% 20% 40% 60% 80% 100%
Send/receive money individuals
Contact customer care at FI
Receive/pay household bills
Transfer money betweenaccounts
Locate ATM or branch
Check credit card balance/available credit
Check bank account balance
% of Respondents Who Would Consider Mobile Finance
During a typical month, please indicate which of the following mobile financial services features you think you would use through your cell phone or other mobile device. Select all that apply.
7
7
Significant Benefits: 24/7 Access to Account Balance; Access Services Anytime without Computer/Branch
4%
17%
33%
44%
48%
66%
71%
76%
0% 20% 40% 60% 80% 100%
Don't see any benefi ts
Spend less time managing fi nances
Less paperwork to manage
Will help manage and control my fi nances
Check for fraudulent account activity
Access fi nancial services without a
computer or branch
Access fi nancial services anytime I want
24/ 7 access to account balance
Among respondents who would consider using Mobile Finance during a typical month: What benefits do you see from accessing financial services through your cell phone or other mobile device?
8
8
Significant Barrier: Concern about the Security of Accessing Finances Using a Cell Phone
16%
16%
17%
27%
44%
47%
48%
72%
0% 20% 40% 60% 80% 100%
Afraid network would go down, losing access
to fi nances
Would lose paper trail
Worried about access outside cell phone
coverage area
Don't know enough about how it works
Size of the screen is too small
Worried about losing phone and impact that
could have on my fi nances
Afraid of cost
Concern about the security of accessing
fi nancial information using a cell phone
Among all respondents: What are your concerns about accessing financial services through your cell phone or other mobile device?
9
9
High Acceptance of Alerts May Mitigate Concerns
57%
65%
79%
82%
0% 20% 40% 60% 80% 100%
Scheduled alerts (e.g., Regularly
scheduled updates on balances for your
accounts)
Bill pay alerts (e.g., You have a bill that is
due)
Account alerts (e.g., Your balance has
fallen below your defi ned amount)
Security alerts (e.g., Your online banking
password has been changed or revoked)
Would you sign up for the following text alerts if they were offered to you by your financial institution? These messages would be sent directly to your mobile device by your financial institution.
Having bank or credit union sponsor Mobile Finance is preferred provider by 3/4s of those who would consider using it. Would alleviate concerns as well.
10
10
Bank Overwhelming Favorite to be the Provider of a Mobile Finance Service
Bank, 79%
Cell phone service
provider, 7%
No preference,
14%
Whom would you prefer to offer the financial services listed above on your cell phone or other mobile device?
11
11
What Groups to Target for Mobile Finance: Gen Y Aged 18-34 Who Already Pay for a Monthly Text Messaging or Mobile Data Plan
52%
48%
32%
43%
35%
0% 10% 20% 30% 40% 50% 60%
Pay for a mobile
data plan
Pay for monthly
text messaging plan
Age 35+
Age 18-34
Overall
If these services were available through your cell phone or mobile device, do you think you would use one or more of them during a typical month? (% of each group saying yes shown below)
Focus of rest of presentation due to greater interest
Why the Focus on Gen Y
If these financial services were available to you through your cell phone or other mobile device, do you think you would use one of more of them in a typical month?
40%
40%
17%28%
32%43%
0%
20%
40%
60%
80%
100%
Gen Y Older Households
Yes
May beNo
13
13
Gen Y Much More Likely to Use Non-Voice Features of their Cell Phones
45%
5%
7%
11%
14%
15%
48%
11%
12%
15%
20%
22%
34%
86%
0% 20% 40% 60% 80% 100%
None of the above
Downloaded games
Sent mobile emails using email svc
provider
Sent instant messages
Downloaded ring tones
Accessed the internet
Sent text messages
Gen Y
Older households
Which of the following features of your cell phone service did you use last month?
14
14
Gen Y Much Heavier Cell Phone Messagers regardless of Method
3.4
2.4
14.3
14.9
37.5
67.8
1.9
2.0
17.8
54.1
76.7
214.2
0 20 40 60 80 10
0
12
0
14
0
16
0
18
0
20
0
22
0
Downloaded games
Downloaded ring tones
Accessed the internet
Sent mobile emails using email svc
provider
Sent instant messages
Sent text messages
Gen Y
Older households
EACH FEATURE SELECTED, how often did you use <FEATURE> last month?
15
15
Gen Y Higher Participation in Text Messaging and Mobile Data Plans
44%
68%
32%
56%
0%
20%
40%
60%
80%
100%
Gen Y Older Households
Yes
No
Do you currently pay for a monthly text messaging plan with your mobile provider that allows you to send and receive a certain number of text messages each month?
69%82%
18%31%
0%
20%
40%
60%
80%
100%
Gen Y Older Households
Yes
No
Do you currently pay for a monthly mobile data plan that allows you to access the wireless internet or other
music / video services using your mobile device?
16
16
Gen Y More Likely to Want to Check Credit Card Balance, Locate an ATM and Receive/Pay Household Bills Using Cell
9%
36%
39%
36%
36%
52%
83%
11%
31%
39%
43%
46%
61%
85%
0% 20% 40% 60% 80% 100%
Send/receive money individuals
Contact customer care at FI
Transfer money between accounts
Receive/pay household bills
Locate ATM or branch
Check credit card balance/available credit
Check bank account balance
% of Respondents Who Would Consider Mobile Finance
Gen Y
Older households
During a typical month, please indicate which of the following mobile financial services features you think you would use through your cell phone or other mobile device. Select all that apply.
17
17
Among Users of Each Feature, Gen Y Thinks They Would Use Most Features More Often
1.9
1.6
2.6
2.7
5.3
4.9
7.9
1.8
2.2
2.9
3.3
4.5
5.6
8.7
0 2 4 6 8 10
Send/receive money individuals
Contact customer care at FI
Transfer money between accounts
Locate ATM or branch
Receive/pay household bills*
Check credit card balance/available credit
Check bank account balance
% of Respondents Who Would Consider Mobile Finance
Gen Y
Older households
Potential users only: How often do you think you would use <feature> during a typical month?
Previous surveys show that Gen Y households pay fewer bills on average than older households
18
18
Gen Y More Likely to Use Mobile Finances to Help Manage and Control their Finances
5%
16%
32%
41%
50%
66%
69%
76%
2%
18%
35%
51%
45%
68%
74%
78%
0% 20% 40% 60% 80% 100%
Don't see any benefi ts
Spend less time managing fi nances
Less paperwork to manage
Help me manage and control fi nances
Check for fraudulent account
activity
Access fi nancial services without a
computer or branch
Access fi nancial services anytime I
want
24/ 7 access to account balance
Gen Y
Older households
Among respondents who would consider using Mobile Finance during a typical month: What benefits do you see from accessing financial services through your cell phone or other mobile device?
19
19
Gen Y Less Worried about Lack of Knowledge How MFinance Would Work, Coverage outside Area and Loss of Paper Trail
17%
18%
19%
31%
44%
46%
49%
72%
13%
12%
12%
19%
44%
49%
47%
72%
0% 20% 40% 60% 80% 100%
Afraid network would go down, losing
access to fi nances
Would lose paper trail
Worried about access outside cell phone
coverage area
Don't know enough about how it works
Size of the screen is too small
Worried about losing phone and impact
that could have on my fi nances
Afraid of cost
Concern about the security of accessing
fi nancial information using a cell phone
Gen Y
Older households
Among all respondents: What are your concerns about accessing financial services through your cell phone or other mobile device?
20
20
Gen Y More Interested in Receiving Account and Bill Pay Alerts
56%
62%
75%
84%
59%
72%
87%
76%
0% 20% 40% 60% 80% 100%
Scheduled alerts (e.g.,
Regularly scheduled updates on
balances for your accounts)
Bill pay alerts (e.g., You have a
bill that is due)
Account alerts (e.g., Your
balance has fallen below your
defi ned amount)
Security alerts (e.g., Your
online banking password has
been changed or revoked)
Gen Y
Older households
Would you sign up for the following text alerts if they were offered to you by your financial institution? These messages would be sent directly to your mobile device by your financial institution.
Having bank or credit union sponsor Mobile Finance is preferred provider by 84% of Gen Y respondents who would consider using it. Would alleviate security concerns.
21
21
Gen Y Easier to Reach with Cell Phone Promotions; Willingness to Pay for MFinance about the Same as Older Households
29%
7%
9%
20%
26%
12%
15%
33%
0% 10% 20% 30% 40% 50%
Willing to pay a
small
surcharge for
MFinance
Respond to
targeted ad
Marketing
promotion thru
cell
Likely to
partic ipate in a
sweepstakes
Gen Y
Older households
Please tell us how likely your would be to do each of the following activities on a 0 to 10 scale where 0 is not likely at all and 10 is extremely likely? %s Providing a 7-10 rating shown.
Would you be willing to pay a small monthly surcharge (less than $5) to your bank or cell phone service provider to access and use mobile financial services?
22
22
Gen Y Make Significant Use of Selected Banking Services that Could Be Performed Using a Mobile Phone
30%
62%
84%
74%
27%
57%
78%
87%
0% 20% 40% 60% 80% 100%
Access bank's
services by
phone
Use online bill
pay
Visit a branch
Use online
banking
Gen Y
Older households
Check balances 11.8 times
39% 3 or more branch visits last month
55 % pay 4+ bills using online bill pay
32% 3+ times access bank’s svcs using phone
23
23
Summary
Almost a quarter of cell phone users are already conducting some form of Mobile Finance
This familiarity is translating into more interest in a prospective Mobile Finance service (3/4s of respondents would consider it, up from 49% two years ago)
Security is a definite concern, but having Mobile Finance sponsored by a bank and providing security related alerts would help mitigate this concern
Geny Y respondents more interested in Mobile Finance:
• More likely to have a mobile texting or data plan
• Less concerned about some barriers (e.g., losing paper trail)
• More likely to respond to promotions