22 May 2018

Mobile banking finding favour with younger consumers

10 May 2010  |  2763 views  |  0 Source: Auriemma Consulting Group

Mobile banking has been widely predicted to become a mainstream technology, but current usage is very much a youth phenomenon, according to Cardbeat®, a syndicated market research report published by Auriemma Consulting Group (ACG). While it's not surprising that early adopters of most technologies tend to be under 45 years of age, the split in mobile banking is particularly marked, with the majority of users in the 18-25 group.

Mobile banking is still in its infancy, with 13% of the population claiming to use it at least occasionally.

"While instant feedback and convenience are the predominant reasons for using this service, incentives are becoming more of a motivator than in the past," says Nancy Stahl, editor of Cardbeat. "Four out of ten consumers under 45 years old said they signed up for mobile banking because they received an incentive." Meanwhile, skepticism is particularly widespread among respondents who are 45 or older, who do not see the added value of mobile banking and voice concerns about security.

Are incentives a good idea? They are probably a waste of time for consumers who are 45 or older. However, they may be effective with younger consumers, who are already predisposed toward mobile banking, Stahl said. "Offering them a modest incentive, such as bonus rewards for using the service or a $5 statement credit at the time of enrollment, may be the push they need to sign up."

The youthful consumers who are drawn to mobile banking are not yet a very profitable segment for bankers. However, as a long-term investment, mobile banking may be a way to create loyalty among this group, which will be much more profitable in 10 years, when they are making more money, investing, buying houses, and so on, Stahl noted.

The information in this release includes data from a survey of 535 cardholders conducted in March 2010.

Comments: (0)

Comment on this story (membership required)

Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comVisit http://go.jumio.com/finextraAdVisit aciworldwide.webex.com

Top topics

Most viewed Most shared
PayPal agrees $2.2 billion deal for iZettlePayPal agrees $2.2 billion deal for iZettl...
9126 views comments | 15 tweets | 28 linkedin
BBVA begins global roll-out of unified mobile appBBVA begins global roll-out of unified mob...
8045 views comments | 6 tweets | 5 linkedin
Former JPMorgan blockchain leads unveil new startupFormer JPMorgan blockchain leads unveil ne...
7879 views comments | 2 tweets | 2 linkedin
Worldline to acquire SIX Payment ServicesWorldline to acquire SIX Payment Services
7414 views comments | 14 tweets | 25 linkedin
Deutsche Bank acquires Indian Open Banking software house Quantiguous SolutionsDeutsche Bank acquires Indian Open Banking...
6950 views comments | 10 tweets | 8 linkedin

Featured job

Find your next job