Banks Offering Mobile Banking But Consumers Slow to Adapt
Financial institutions are offering mobile banking faster than consumers are adapting to it, according to a recently published survey from the Federal Reserve Bank of Boston. Banks and credit unions are using this as a tool to attract and retain customers, even though it appears that customers are not taking advantage of the opportunities.
Four out of five banks and credit unions said less than 20% of their users had adopted mobile banking for their accounts. Only 4% of financial institutions reported that more than half of their account holders actively used their mobile banking platforms.
More than three out of four banks surveyed said they had mobile banking options for their customers, and 16% said they planned to established a mobile platform in the next two years. The most common features for mobile banking apps include balance transfers, account histories, balance checks and ATM/branch locators.
While mobile technology does open the doors for “banking on the go,” 59% of banks said their consumers already had their banking needs met through other means. It appears that traditional banking methods are still popular, even in a world of smartphones and tablets.
In an effort to improve adoption rates in the future, the Federal Reserve Bank of Boston suggested banks diversify their mobile banking platforms to accommodate businesses and their unique needs. Currently, most financial institutions offer the same programs for individual and business accounts, even though they may serve vastly different purposes.
The rapid growth of Apple Pay has caused some banks and credit unions to reassess their mobile banking platform. With Samsung Pay and Google Pay quickly taking shape, there may be even more for bank owners to assess in the months to follow.
“Banking executives unfamiliar with NFC 18 months ago are now closely watching how mobile payments are taking shape at the point-of-sale,” the report stated.
This survey was completed in 2014, even though the results were just published this week.