29 July 2016
Find out more

US mobile finance approaches tipping point - research

03 December 2009  |  8838 views  |  0 Wells Fargo M-banking

Mobile phone-based financial services are approaching a tipping point in the US and banks that fail to act risk losing customers to more aggressive competitors, according to research from Mercatus.

Mercatus surveyed over 1400 US adults for the Visa-sponsored research, finding that nearly a third of consumers are using, or considering using, mobile financial services in the next year.

Additionally, responses indicate that consumer adoption will grow significantly during the next five years, exceeding the use of online banking by 2015. The current pace of mobile adoption exceeds past innovations including ATMs, debit cards and Web banking, says the research house.

The study indicates that a bank's ability to offer mobile services is becoming more important for customers when opening an account than the availability of online banking, access to ATMs, or nearby branches.

The consultancy claims that a massive 60% increase in sales could be anticipated for first-mover banks.

This is in part because mobile services are most attractive to younger people with higher incomes and those that hold bigger balances, use more banking and card products, and display lower rates of attrition.

Bob Hedges, managing partner, Mercatus, says: "Owing to its rapid pace of adoption, mobile is a market that offers a clear first-mover advantage. Banks that act soon, and aggressively deploy mobile financial services, will capture a clear market opportunity. Banks that delay will risk losing their best customers to the competition."

The research chimes with a report from TowerGroup earlier this year that predicted a breakthrough for mobile banking in the US, as it moves from niche to mainstream in 2009, attracting 10 million active users.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Cgap examines the future of mobile banking

Cgap examines the future of mobile banking

20 November 2009  |  9678 views  |  1 comments
M-banking services should target offline customers - survey

M-banking services should target offline customers - survey

07 October 2009  |  9816 views  |  2 comments
BofA to close 10% of branches as customers go online and mobile - WSJ

BofA to close 10% of branches as customers go online and mobile - WSJ

28 July 2009  |  7737 views  |  1 comments
US mobile banking goes mainstream - TowerGroup

US mobile banking goes mainstream - TowerGroup

26 May 2009  |  7404 views  |  0 comments
M-banking users to hit 900 million by 2014 - study

M-banking users to hit 900 million by 2014 - study

13 March 2009  |  8644 views  |  0 comments
Mobile banking numbers to hit 150m by 2011 - report

Mobile banking numbers to hit 150m by 2011 - report

14 January 2009  |  7374 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit www.abe-eba.euFind out more

Top topics

Most viewed Most shared
Groupe BPCE agrees to buy FidorGroupe BPCE agrees to buy Fidor
7018 views comments | 31 tweets | 47 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6970 views comments | 16 tweets | 22 linkedin
hands typing furiouslyManaging Big Data After Brexit
6381 views 0 | 6 tweets | 8 linkedin
hands typing furiouslyBank of Pikachu? What does Pokemon Go mean...
5572 views 0 | 10 tweets | 9 linkedin

Featured job

Find your next job