MOBILE BANKING – Getting It Right This Time

Overview:
  Mobile channel adoption will depend on more than just market timing. Financial institutions must implement their programs based on 1) an understanding of what factors distinguish the mobile channel from existing ones and 2) consumer segmentation criteria that juxtapose consumer preferences with attributes and benefits of particular platforms. While US banks engaged in mobile banking are focusing on making several capabilities available through one platform, in-depth data indicates that consumer demands center on a select few capabilities that can lead to increased interaction between customer and institution. Quantitative data analysis coupled with interviews from top US and international FIs and mobile technology vendors provide the basis for segmentation and the resulting platform and feature strategies, as well as address lessons to be learned from more mature mobile markets and the role carriers play in this new channel.

Primary Questions

Overview:
  With the introduction of any new channel or technology such as the use of mobile devices for banking activity, financial institutions (FIs) must ensure that the perceptions and the realities surrounding security are successfully managed, both to ensure adoption and protect customers and the institution from emerging threats. The key emphasis of this study focuses on the approach that FIs should take toward consumer security education, as well as the need for strong collaboration among vendors, banks and carriers for effective implementation. This report provides a comprehensive analysis of the key security aspects surrounding mobile banking: the security perceptions, preferences and behaviors of consumers; actions that financial institutions are taking to secure the mobile channel; and an assessment of potential threats. Javelin also delves into the mobile security issues of FIs and insights of vendors, extracting valuable insight from in depth interviews with leading US banks and platform suppliers.

Primary Questions

  Mobile banking initiatives combined with the proliferation of contactless payments will lead to convergence of payment services through mobile handsets. To realize this convergence, financial institutions and payment networks must understand the roles and needs of additional players in the value chain—most notably wireless carriers and merchants. Javelin has gathered extensive, quantitative, longitudinal consumer data on attitudes toward mobile payments, and has created a forecast model for the adoption of contactless payments. Javelin has undertaken an extensive analysis of the value propositions of all players to provide an understanding of the critical factors that will make contactless and other mobile payments adoption more probable.