Pressroom

Mar 26, 2014

Javelin Strategy & Research Explores if the color of Money is Green...or Pink or Blue?

San Francisco, CA, March 26, 2014: Bankers and the financial services industry have much to gain analyzing ways to make digital channels more compelling, more useful, and more satisfying to the nation's 126 million women. Today, Javelin Strategy & Research released Banking with Women Customers: Strategies to Increase Digital Banking Engagement, which explores how gender plays a role in financial decision-making, the financial products women buy, what influences them as they decide whether to swipe a debit or a credit card, habits for handling essential financial chores, desire for smartphone-powered control, and need for better online and mobile personal finance management.

women debit card use javelin

Women engage in more activities that point to day-to-day, on-the-go financial management, while men play a greater role in longer-term chores such as orchestrating more complex financial affairs and financial planning. As...

Mar 19, 2014
Javelin Strategy & Research Forecasts Five Year Mobile Banking, Smartphone and Tablet Growth

San Francisco, CA, March 19, 2014: The year 2013 saw an enormous influx of consumers flocking to mobile banking, with 74,000 new users joining mobile banking each day. Today, Javelin Strategy & Research released Mobile Banking, Tablet and Smartphone Forecast 2013-2018: Smart Device Adoption Drives Mobile Banking Boom, which outlines a five-year forecast of mobile banking and mobile phone and tablet adoption factoring for key drivers and potential roadblocks. In addition, the report discusses strategies for banks and credit unions to thrive as mobile banking institutions.

Mobile Banking Adoption Forecast 2013 to 2018

Among mobile bankers, 17%-18% use their phones to check balances and review recent transactions over 20 times a month. The rate of Generation Y (18-34) mobile bankers that check their balances and transactions over 20 times a month is twice that of Baby Boomers (48-68). Given this high level of interaction, financial institutions (FIs) can drive the popularity of...

Mar 5, 2014
Javelin Strategy & Research Reveals Consumer Adoption of Alternative Payment Platforms --PayPal, Amazon Payments, Google Checkout, Bill Me Later--are Going Mainstream

San Francisco, CA, March 5, 2014: The e-commerce market is evolving at a spectacular rate, and never before has it been more competitive. In 2013, consumers spent a total of $351.9 billion online. Today, Javelin Strategy & Research released Online Retail Payments Forecast 2013-2018 report which evaluates forecast changes in the e-commerce market, tracks the payments mix, and identifies key drivers of market change. Additionally, the report evaluates online share and transaction growth of credit cards, debit cards, online alternative payments like PayPal and Amazon Payments, online credit services like Bill Me Later, prepaid cards, and gift cards.

Do not be deceived by the use of "alternative" in online alternative payments, as these payment options have clearly become mainstream for online retail payments. Over 80% of online shoppers...

Feb 20, 2014
Javelin Strategy & Research Reveals Strengths and Weaknesses of Prominent E-commerce Platforms

San Francisco, CA, February 20, 2014: E-commerce transactions constitute a growing share of the overall retail market.   Merchants and payments processors alike are expanding their platform solutions for card-not-present (CNP) payment acceptance and processing.  Today, Javelin Strategy & Research released E-Commerce Platform Review - Fueling Online Shopping for Tomorrow which compares the capabilities of seven leading e-commerce platform providers.

Consumers are relying on e-commerce platforms as reliable shopping venues with 9 out of 10 consumers having made an online purchase just last year. There are fewer consumers that have not had an online shopping experience,  with 7% have never shopped online, compared to 22% just four years ago in 2009. Today's consumers are more sophisticated online and vendor solutions need to continue to evolve.  Javelin's study evaluates e-commerce processors' platforms in five categories:  core back-end processing functions, domestic payments, international payment processing, fraud and security features, and mobile capabilities.

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Feb 12, 2014
Javelin Strategy & Research Reveals Tablet Take Over of the Mobile Purchasing Market

San Francisco, CA, February 12, 2014: 2013 marked an important mobile payment's "first," with tablet payments comprising almost half of all mobile commerce. Today, Javelin Strategy & Research released Mobile Payments Market: Tablet Payments Surge as Overall Mobile Retail Sales Top $60 Billion, an in-depth study of the mobile shopping market, including market sizing of online, app and proximity payments by device type and a five-year forecast of mobile proximity payments and strategies for merchants, vendors, and mobile payment and wallet platforms to expand in this market.

In 2013, tablets accounted for a massive $28.7 billion in mobile online commerce, or over 50% of the entire mobile online payments space. That is quintuple 2012's $5.1 billion.  The portion of commerce generated through tablets is fueled by rising device ownership, as mobile consumers ownership of the device doubled since 2012. As tablet ownership rates continue to...

Feb 5, 2014

Number of Identity Fraud Victims Rose to 13.1 Million, but Fraud Decreased to $18 Billion

Dramatic Increase in Account Takeover

Data Breaches Become Even More Damaging

Fraudsters use Stolen Information with eBay, PayPal, Amazon and other Internet Accounts

SAN FRANCISCO, February 5, 2014 – The 2014 Identity Fraud Study released today by Javelin Strategy & Research (@JavelinStrategy), reports an increase of more than 500,000 fraud victims to 13.1 million people in 2013, the second highest number since the study began. Account takeover fraud hit a new record in incidence for the second year in a row and accounted for 28 percent of all identity fraud. Additionally, fraudsters increasingly turned to eBay, PayPal and Amazon with the stolen information to make purchases. In 2013, data breaches became more damaging, with one in three people who received a data breach notification letter becoming an identity fraud victim. Encouragingly, the amount criminals stole decreased by $3 billion to $18...

Jan 23, 2014

Javelin Finds Retailers Embrace Social media to Enhance In-Store shopping Experience

San Francisco, CA, January 23, 2014: Social networks have become an additional arm of payments and retail, rather than just a virtual place for individuals to socialize.  Today, Javelin Strategy & Research (@JavelinStrategy) released the Social Media Payments: Redefining Shopping for a New Era report, which explores the growth of social networks and the changes to retail shopping, consumer behavior, and payment transactions. It also examines the demographics of social shoppers, their attitudes toward payment and alternative payment means, and brands they trust when making purchases on social networks.

Social Network Shoppers

Sixty-two million adults have purchased on a social network in the past 12 months. Surprisingly, the most likely purchase made on a social network is not a virtual or digital item but actually a physical item like clothing, shoes, electronics, etc.  Yet social networks might not be ready to fill in for Amazon or eBay in the immediate future, but social-network sites are beginning...

Jan 22, 2014
Bank of America Maintains Best in Class Status, while USAA, Wells Fargo, SunTrust and Associated Bank Earn Top Awards too

San Francisco, CA, January 22, 2014: The results of Javelin Strategy & Research (@JavelinStrategy) recent study of credit card issuers' security show that Bank of America, USAA and Wells Fargo are topping all competitors in prevention, detection and resolution.  Javelin's ninth annual credit card issuers' study scores 24 of the nation's top credit card issuers – providing credit card issuers with insight into recent fraud trends, and ways they can improve their security posture.

Card fraud is highly pervasive. Affecting 7.5 million Americans in 2012, total card fraud losses reached almost $8 billion in 2012.  Credit card accounts were the most common account takeover target, affecting 36% of consumers who experienced account takeover in 2012. The scorecard analyzes the security features of the nation's top credit card issuers using Javelin's Prevention, Detection, and Resolution Model™, which has become an important tool for issuers in thwarting fraudsters.

"Retailers, common targets for data breach crimes, scored lowest in Prevention and among the lowest overall. The three retailer issuers reviewed placed lowest in Prevention...

Dec 17, 2013
FIS tops mobile banking vendors as 'Best in Class', followed by Monitise and Fiserv earning top awards

San Francisco, CA, December 17, 2013: The results of Javelin Strategy & Research's annual Mobile Banking Vendor Scorecard show that FIS, Monitise and Fiserv are outperforming all competitors with mobile banking solutions.  Javelin's fourth annual Mobile Banking Vendor Scorecard evaluates vendors' solutions—standard out-of-the-box and customizable—to assess critical categories of features and functionality that will drive mobile banking adoption among consumers.

At long last, 100% of the top 25 retail financial institutions offer downloadable mobile banking applications, up from 84% in 2010.  With mobile banking usage on the rise, vendors have a strong case to present to financial institutions still skeptical on the value of investing in the channel. As adoption rises, financial institutions with strong mobile banking capabilities will find themselves increasingly appealing to the growing base of smartphone owners.

Financial institutions need to adopt a strategic plan for mobile banking," according to Mary Monahan, Research Director of Mobile at Javelin...

Dec 12, 2013

Javelin Strategy & Research Finds Data Breach the Primary Source of Misused Payment Cards

San Francisco, CA, December 12, 2013:  Over the past several years, criminals have proven immensely capable of compromising massive volumes of credit and debit card data by breaching the systems of organizations that store or transmit payment information. Among the most recognizable businesses to do so, merchants and processors have become high-profile targets.  Javelin identified a connection between consumers being compromised in data breaches and later actually becoming a fraud victim. Today, Javelin Strategy & Research (@JavelinStrategy) released the Payment Card Data Security Report: Combatting Breaches, Perfecting EMV and Safeguarding Mobile Payments, which found that the number of notified card-breach victims who suffered fraud increased 340% from 2010 to 2012, resulting in $4.8B in fraud losses.

Despite industry guidelines to protect payment card data, 15.8 million consumers were notified that their card information was compromised in 2012.  Criminals are motivated...

Dec 4, 2013

EZShield tops Best in Class as Identity Protection Service, while LifeLock and IdentityForce Earn Top Awards too

San Francisco, CA, December 4, 2013: The results of Javelin Strategy & Research’s annual Identity Protection Services study show that EZShield, LifeLock and IdentityForce are among the best in preventing, detecting and resolving identity fraud. Javelin’s seventh annual Identity Protection Services study examines the issues affecting consumer adoption of identity protection services and the means by which service providers can maximize their share of an increasingly consolidated market.

“The identity protection industry has historically been dominated by several core products. However, providers are beginning to leverage new technologies and relationships in order to protect consumers from a broader variety of fraud threats,” said Al Pascual, Senior Industry Analyst, Security, Risk & Fraud at Javelin Strategy & Research.

  • EZShield Earns Best in Class Identity Protection Service Provider. Javelin awarded Best in Class to EZShield with impressive prevention, detection and resolution capabilities....
Nov 21, 2013

Bank of America tops Best in Class as Mobile Banking Provider, while BBVA Compass, Chase, Citizens Bank, USAA, Wells Fargo, and others Earn Top Awards too

San Francisco, CA, November 21, 2013: The results of Javelin Strategy & Research’s annual Mobile Banking Financial Institution study show that Bank of America, Citizens Bank, USAA, BBVA Compass, Wells Fargo, Chase and others banks are topping all competitors in mobile banking. Javelin’s sixth annual Mobile Banking Financial Institution study evaluates the abilities of financial institutions (FIs) to meet consumers’ growing mobile banking needs as they evolve from mobile account monitoring to mobile money movement and beyond.

At long last 100% of the top 25 retail financial institutions offered mobile banking offerings, up from 63% in 2010. Growth in mobile banking adoption was strong in 2013, as financial institutions bolstered their offerings as consumers continued to adopt new mobile devices.

“These financial institutions are moving ahead of the competition by offering advanced features like enrolling in mobile banking using a mobile phone, mobile bill payment, actionable alerts and consistent experience across all banking channels,” according to Mary Monahan, Research Director of Mobile at...

Oct 29, 2013
Javelin Strategy & Research Outlines Mobile Billing Opportunity

San Francisco, CA, October 30, 2013: Although still in its infancy, paying bills on mobile devices is primed to grow rapidly with over 12.5 million Americans already using mobile bill pay.  Javelin Strategy & Research released How Mobile Can Open the Door to $2.1 Trillion in Bill Payments report which sizes the current flow of dollars through the bill-payment market, including the breakdown of online, mobile, and offline payments. The report provides an 11-point analysis of what consumers desire when paying their bills, identifies banks with market-leading adoption, and maps out strategies for upgrading and marketing the bill-payment process.

The first wave of consumers already is typically pulling out a smartphone or tablet to pay, and mobile bill payments are primed for rapid growth.

Javelin estimates Americans pay $2.1 trillion annually to pay seven bills that are central to a consumer's day-to-day living and form the foundation for a deeper borrowing relationship: major credit cards usable...

Oct 23, 2013
Javelin Strategy & Research Ranks Largest Contenders: Apple, Google, Facebook, Amazon and eBay's PayPal

San Francisco, CA, October 23, 2013 The stakes are high for the adoption of mobile wallets with an existing U.S. market of over $4 trillion up for grabs. Yet no single company has been able to crack the code for mobile wallets. Javelin Strategy & Research's annual 2013 Gang of Five report analyzes the current strategies of the existing contenders, Apple, Google, Amazon, Facebook, and eBay's PayPal, versus those of the major payment networks, largest financial institutions, and top mobile network operators. The report details which players are winning and losing and what needs to happen to gain consumer mobile wallet adoption.

Each member of the Gang of Five is working mightily to remain in position by providing apps, games, products, books and movies to retain eyeballs.  Javelin's TIP (Trust-Innovation-Privacy) Model analyzes the competitive space of mobile wallets from the consumer perspective.  Over the past year, PayPal moved up into the top spot as the most trusted brand surveyed and the firm with the highest ratings for privacy protection.  With one in five consumers ready to adopt a mobile wallet in the next year, PayPal is in a great position to lead in mobile wallet...

Sep 25, 2013

Javelin Strategy & Research Examines 12 Major Mobile Wallet Providers to Solve the Merchant and Consumer Equation

San Francisco, CA, September 25, 2013 With an annual U.S. retail POS market of almost $4 trillion up for grabs, the stakes are extremely high. But slow adoption, lack of merchant enthusiasm, fragmented offerings, and blocking by competitors has resulted in stalled growth for mobile wallets. Today, Javelin Strategy & Research (@JavelinStrategy) released the firm’s Mobile Wallet Game Changers: A Glimpse into 2014's Projected Winners and Losers report which provides competitive analysis of 12 major mobile wallet providers, breaking down the main changes of each provider over the last year and measuring their attractiveness in the eyes of consumers.

Mobile Wallet Technologies

More mobile wallet players competed for less space in 2013, as small and large competitors positioned themselves in anticipation of coming growth in the area. The largest movement has been in digital wallets, with growth in mobile...

Sep 12, 2013

Javelin Strategy & Research Identifies 29 Million Consumers Banks Could Convert to Paying Bills at Their Websites

San Francisco, CA, September 12, 2013: Financial institutions must take action to alter the fate of flat online banking adoption through 2018. Javelin estimates banks can increase household adoption of online banking by 22% by targeting 29 million Americans who are just one step away from paying their bills at the bank.  Today, Javelin Strategy & Research(@JavelinStrategy) released 2013 Online Banking and Bill-Payment Forecast: 29 Million Holdouts Primed for FI Bill Pay, a report that identifies a new segment of nearly 11 million consumers --Digital Drifters, who bank online and use mobile banking but do not pay bills at their bank. A majority of them pay bills online – they just do so at a biller’s websites. The report provides key recommendations to cater to these young, tech-savvy, mobile-minded consumers who crave control as they monitor and manage their growing finances.

More than half of young, savvy Digital Drifters perceive paying bills...

Sep 12, 2013

Javelin Strategy & Research Finds That Remittance Customers Are High-Tech and Mobile-Savvy Consumers

San Francisco, CA, September 12, 2013: Today, Javelin Strategy & Research (@JavelinStrategy) released International Remittance Transfers: How to Tap $2.1B in Cross-Border Revenue. The firm’s report provides revenue market sizing for remittance providers, an in-depth overview of the current users and recommendations for maximizing providers’ return on investment. Javelin estimates that remittance providers collected $1.55 billion from outbound U.S. remittance transfers in 2012. Yet, providers failed to collect over a half billion ($573 million) in revenue because consumers elected to send cash or checks through the mail, missing out on an opportunity to collect revenue on the transaction.

“Providers are leaving money on the table when consumers choose to use non-official means to send money internationally,” said Aleia...

Aug 21, 2013

Javelin Strategy & Research Assesses Emerging Bank Services of Bank of America, Citi, Wells Fargo, PNC, Chase, USAA, SunTrust, and 13 other Banks

San Francisco, CA, August 21, 2013 –Large investments in emerging services like mobile and online do not always translate into higher customer satisfaction or even high financial performance. Javelin Strategy & Research, a leading financial services analyst firm, is releasing the company’s new competitive benchmark service, Outperform, which is a result of analyzing over 20 leading financial institutions and provides insights to improve each banks’ return on investment on emerging bank services---mobile and online banking services.

Online banking adoption has been growing rapidly at many large financial institutions and rippling through to the smaller tiers. Over 70% of Wells Fargo customers frequently log in online, compared to Bank of America (65%). While online banking has been viewed as an advanced service, you would expect these banks to capture large numbers of early adopters. Yet, Wells Fargo has fewer customers who consider themselves early adopters of technology or new services, at similar levels to community banks customer technology profile. Bank of America and J.P. Morgan Chase have the...

Aug 7, 2013

Javelin Strategy & Research Identifies Virtual Currency moving from Digital Swords to Physical Goods

San Francisco, CA, August 7, 2013: Virtual currency has evolved far past its humble beginnings as an in-game currency. More than 47 million U.S. adults purchased $4.65 billion worth of virtual currency in 2012, and spend on virtual currencies is expected to more than double in 2013. Today, Javelin Strategy & Research released the firm’s Virtual Currencies 2013– Crossing the Chasm report, which assesses the transition of virtual currencies from the digital world to the physical, specifically focusing on the shift from simple, closed-loop virtual currencies to bidirectional virtual currencies used for real-world fiat exchange.

Without users, virtual currencies are nothing but an academic experiment. Two types of “real-life” purchases increased among virtual currency users: digital entertainment downloads and vouchers redeemable for physical goods. In 2011, 16% of...

Aug 6, 2013

Javelin Strategy & Research Explores the Initial Wave of Consumers Completely Opening Banking Accounts on Smartphones and Tablets

San Francisco, CA, August 6, 2013.  The fact that 88.5 million Americans attempted to open an account online or with a smartphone or tablet device in the past 12 months underscores how far digital account opening has come in a few short years. Nonetheless, its potential remains largely untapped, especially as consumers place growing importance on mobile capabilities. Today, Javelin Strategy & Research released the firm’s How to Upgrade Online and Mobile Account Opening for an Omnichannel Era report, which analyzes the state of online and mobile account opening in contrast to traditional branch applications. The return on investment from digital account opening clearly begins with acquiring customers, but its potential value also can extend to retention, cost avoidance, and revenue.

The initial wave of consumers applying online and opening account has grown to include consumers relying on smartphones and tablets for account openings....

Jul 30, 2013

Javelin Strategy & Research Analyzes Retail Payments Fraud Prevention in the Age of Data Breaches and Malware

San Francisco, CA, July 30, 2013: In 2012, online retail payments reached 7.4% ($318 billion) of all retail transactions. The thriving online market is an increasing target for fraudsters to both steal and misuse consumer data as data breaches and malware evolve as the primary means to acquire this valuable information. Today, Javelin Strategy & Research released the firm’s first Online and Mobile Retail Payments Authentication report explores a variety of authentication options as well as consumer’s willingness to adopt these processes in future online and mobile shopping.

Consumers are Familiar with A Wide Variety of Authentication Technologies

Most consumers are not familiar with authentication technologies for use during online retail payments, but that is about to change. While two-thirds of consumers say they are well-acquainted with...

Jul 8, 2013

Javelin Strategy & Research Identifies Mobile Deposit Changing the Role for Branch Interactions

San Francisco, CA, July 9, 2013: Mobile bankers are valuable bank customers; rich, young, and flush with profitable bank products and services. And the service is saving institutions money; as the number of mobile bankers has grown, branch visitation has decreased considerably. Today, Javelin Strategy & Research released Leveraging an Omnichannel Approach Financial Institutions Fight for $1.5 B in Mobile Banking Profits, which provides best practices and recommendations to encourage consumers to maximize the potential of their mobile devices – and save financial institutions money in the process.

 

The evidence is growing that the rising consumer adoption of digital technologies alters the branch-based distribution model. Since 2010 branch visits have dropped dramatically by 10 percentage points, while mobile banking has risen by same amount. For the typical FI, an in-person transaction costs $4.25 while...

Jun 5, 2013

Javelin Strategy & Research Examines the Very Real Connection between Data Breaches and Identity Fraud

San Francisco, CA, June 5, 2013. Contemporary research on the financial impact of data breach events has focused on costs to businesses and institutions, but largely ignored their effect on the consumers whose personally identifiable information (PII) is compromised. Today, Javelin Strategy & Research (@JavelinStrategy) released the firm’s first ever “2013 Data Breach Fraud Impact Report: Mitigating a Rapidly Emerging Driver of Fraud,” which demonstrates the real connection between data breach and consumer fraud. A single massive data breach can result in billions of dollars in consumer fraud losses.

Data breach victimization has been increasingly correlated with fraud incidence over the past three years. Over 50% of fraud victims in 2012 were also data breach victims. Fraudsters are improving at mining large data sets at the same time as businesses and institutions of all types are facing an...

May 9, 2013

Javelin Analyzes Prepaid Card Market Momentum and Opportunity for Issuers

San Francisco, CA, May 8, 2013. The dynamics of the card-issuing business and those of the banking industry have changed dramatically in recent years as an array of economic, regulatory, and governmental factors and initiatives have combined to drive expansion in the use of prepaid products. Today, Javelin Strategy & Research released the firm's Checking vs. Prepaid: Threat or Opportunity? report, which evaluates selected prepaid cards in the market today to determine how fees for prepaid products compare to those of basic checking accounts, as well as differences between bank and non-bank prepaid products.

From an estimated $150 billion this year, prepaid purchase volume is expected to grow by almost $45 billion over the next five years. Over the last three years,...

Apr 29, 2013

Third Party Analyst Firm Releases First 2013 Mobile Point of Sale (POS) Business and Market Impact Report

San Francisco, CA, April 29, 2013 – Mobile POS (point of sale) acceptance is attracting small merchants to big-box retailers, posing a growing threat to traditional terminal-based solutions and vendors. Javelin Strategy & Research released the firm's first "Mobile Point of Sale (POS) Business and Market Impact 2013" report, which provides an actionable market sizing of the merchant marketplace and feature comparisons among 14 selected leading solution providers in the POS space. In addition, the report explores provider strategies, best practices and recommendations to capture and expand market share.

Mobile POS expands the existing market for the card payment networks, as Javelin estimates that mobile POS could expand current payment card acceptance by as much as 20 million firms if eligible firms started accepting payments. This impact could account for up to $1.1 trillion in annual new‐card payments.

“The new mobile POS players pose a threat to the traditional POS terminal and acquiring businesses,...

Apr 4, 2013
Analyst Firm Finds Mobile the Undeniable Game Changer to the POS Environment

San Francisco, CA, April 4, 2013 – At 93% of total U.S. retail dollar volume, the point of sale (POS) retail market towers above the online market and will continue to do so for years to come. But the growing popularity of thedigital realm has fundamentally altered the nature of the POS, as brick-and-mortar retailers have had to embrace elements of mobile and online channels in order to remain competitive. Today, Javelin Strategy & Research releases the firm's annual POS 2013-2018 Forecast, which evaluates the actual and forecast changes in the retail POS market, tracking payments mix data and identifying key drivers of market change.

Mobile POS Proximity Payments Will Increase 11-Fold
(percent of payment volume)

 


Although mobile POS proximity payments made up just 0.01% of total retail POS volume in 2012, mobile devices (i.e., smartphones and...

Mar 14, 2013

Javelin Strategy & Research Awards Bank of America and JPMorgan Chase for Top Rankings in Identity Fraud Security

San Francisco, CA, March 14, 2013 – In 2012, the total losses resulting from account takeover and new account fraud each rose by approximately 50% over the previous year. These two fraud types impact consumers most severely, and are historically more difficult for FIs to prevent and detect than any other major fraud type. Today, Javelin Strategy & Research releases the firm’s 2013 Banking Identity Safety Scorecard. For eight years, Javelin has evaluated the top 25 FIs by deposit size based on their consumer‐facing security features in the three fraud stages of Javelin’s Protection, Detection, and Resolution Model™.

Javelin’s research found that 5 of the top 25 FIs prohibit the use of the Social Security number (SSN) to authenticate a user’s identity, up from none in 2011. While this represents a major improvement, 20% adoption is still distressingly low, especially with account takeover fraud at a seven‐year high. Yet, a promising consumer empowerment trend is finally gaining momentum among FIs – 40% of FIs are leveraging customers’ unique knowledge of their own financial...

Mar 6, 2013

Javelin Strategy & Research Uncovers How the Underbanked “Bank” Outside of the Bank

San Francisco, CA, March 6, 2013– When it comes to paying bills, too often the nation’s 37 million underbanked American’s do it using hard and costly ways: in cash, and in person, by mail, or by phoning call center’s. Javelin Strategy & Research’s latest report outlines opportunities for financial institutions, billers, mobile carriers, and bill-pay innovators to enhance the online and mobile options with electronic payments for this underserved population. This report provides a four-part profile of underbanked Americans—those without a checking account. The report also includes an analysis of how they typically pay seven of the most common bills and recommendations for motivating them to increase the use of online and mobile bill payments.

“The underbanked are not a homogenous group that can be easily targeted with a one-size fits all approach,” said

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Feb 28, 2013

Mobile-On-the-Go Personal Finance Management (PFM) is Needed to Shop, Spend and Save, according to Third Party Bank

San Francisco, CA, February 28, 2013 – In the six years since Apple launched its first iPhone, smartphones have imbued consumers with always-on, always-with-me, real-time expectations. This creates an urgent need for the financial services industry to break free of 1980s thinking about personal finance management (PFM) and redefine it for the mobile mass market in the 21st century. Javelin Strategy & Research’s latest report evaluates four tiers of 17 specific PFM features that underscore Americans’ strong desire for help as they shop, spend and save.

Selected Features Consumers Want in 21st Century PFM Tool

Javelin estimates only 21% of U.S. consumers -- or more than 49 million adults -- mix and match current PFM features from software like Quicken, online banking, and various websites. But PFM is primed to evolve from niche products for do-it-yourself...

Feb 21, 2013

Javelin Strategy & Research Identifies the Present and Future of the Mobile Imaging

San Francisco, CA, February 21, 2012 – As the smartphone-toting population crosses the 50% barrier, there are new opportunities and challenges to rethink and re-engineer the consumer transaction experience using new imaging technologies. Javelin Strategy & Research’s latest report provides key information from selecting which mobile imaging services FIs should offer, to successfully rolling-out and targeting the services to reach broad adoption, to vendor coverage. Currently, 64% of the top 25 retail banks by deposit offer mobile deposit, with many of the largest banks in the U.S. rolling out mobile remote deposit capture (RDC) services in the past year.

Two out of Three Top FIs offer Mobile RDC

As of 2012, the two largest smartphone operating systems were Android and iOS at 48% and 32% marketshare, respectively. With the influx of customers...

Feb 20, 2013

1 in 4 Data Breach Letter Recipients Became Identity Fraud Victims

Fraudsters Misuse Information For Fewer Days

Small Online Retailers Being Impacted Disproportionately

SAN FRANCISCO, February 20, 2013 – The 2013 Identity Fraud Report released today by Javelin Strategy & Research, reports that in 2012 identity fraud incidents increased by more than one million victims and fraudsters stole nearly $21 billion, the highest amount since 2009. The study found 12.6 million victims of identity fraud in the United States in the past year, which equates to 1 victim every 3 seconds. The report also found that nearly 1 in 4 data breach letter recipients became a victim of identity fraud, with breaches involving Social Security numbers to be the most damaging. Over the past year, companies are responding more quickly which means a consumer’s information is being misused for fewer days than ever before, and the mean cost per victim has been flattening.

Identity Fraud Rate Rose in 2012

Jan 22, 2013

Javelin Identifies Gen Y Banking Needs and Recommends Relationship-Building Strategies

San Francisco, CA, January 22, 2013 – Slow economic recovery, soaring student debt, and unprecedented unemployment have created two distinct Gen Y consumer segments with very different financial behaviors--Y.1 consumers (ages 18-24) and Y.2 consumers (ages 25-34). Javelin Strategy & Research’s latest report explores the differences between the Y.1 and Y.2, examines key trends and their impact on revenue and costs to financial institutions (FIs), and makes specific recommendations on how FIs can develop long-term profitable relationships with both Gen Y groups.

“By 2025, Gen Y will account for 46% of the nation’s income, making them a critically important consumer segment for FIs, “said Javelin analyst Aleia Van Dyke. “But FIs can’t afford for wait to influence Gen Y financial behavior.”

Like previous generations of young adults, Y.2 consumers are in the stage of life when they establish financial behaviors and relationships. What’s different about Gen Y consumers is they were raised in a digital era and their financial outlook has been framed the recession. Gen Y.2 consumers are more...

Jan 3, 2013

Javelin Strategy & Research’s Top Ten Trend Report Spotlights Changes and Innovations Expected in the Financial Services Industry for 2013

San Francisco, CA, January 3, 2013 –Javelin Strategy & Research’s analysts lay out a roadmap for readers by identifying the top 10 transformational trends in 2013. The report highlights the steps providers need to take to bring order to the rapidly changing arena for banking, payments, mobile and security. These trends depict a constantly evolving financial services arena, in which tools like mobile and social media are rejuvenating financial services delivery through multiple channels, which are proving to be both an asset and a challenge for financial institutions (FIs).

Javelin Strategy & Research’s renowned analysts identified the following as a representation of the changing industry:

Many FIs will lose their positions of trust. Trust in FIs is under assault by a seemingly endless list of players, including Apple, Google, mobile carriers and scores of innovative PFM players. While FIs still have consumer trust on their side, the winners will be defined by who does the best job of developing an intimate financial snapshot of the customers, without crossing the line of being too...

Dec 19, 2012

San Francisco, CA, December 19, 2012 – With the holiday shopping season expected to boost the growing $20 billion mobile payments market, businesses and consumers need to understand and address the security risks associated with mobile devices. Market leader Android, with over 50 million smartphone users, is especially vulnerable to malware and other attacks, given its large and growing user base and open source platform. However, the 33 million iPhone users are attractive targets, as they spend more on average and shop more frequently with their smartphones than Android users. Javelin Strategy & Research’s latest report analyzes risks by mobile platform and channel and recommends mitigation strategies that issuers, merchants, financial institutions, and consumers can utilize for more secure mobile transactions.

More Mobile Purchases Made through Browser than App

Javelin found that iPhone users spend 49% more shopping through the mobile browser than through the mobile app. Likewise, Android users spent 38% more, and users of other operating systems spent 107% more. Shopping through the mobile browser presents greater security...

Dec 6, 2012

Javelin Tracks Mobile Banking Offerings and Adoption By Type of Financial Institution

San Francisco, CA, December 10, 2012 – Credit unions are outperforming community banks in mobile banking, with nine out of ten credit unions offering web-based mobile banking. Meanwhile, three out of ten community banks reviewed do not offer a single form of mobile banking. Javelin Strategy & Research’s latest report analyzes the mobile banking offerings of the four largest banks, top ten large regional banks, top ten community banks, and top ten credit unions, by deposit size, enabling financial institutions (FIs) to benchmark themselves against the top performers in their respective banking category. The report analyzes the impact of increased mobile usage by device and operating system on mobile banking adoption at each type of FI.

Mobile banking offerings vary by size of FI, and consumer adoption varies accordingly. Among top 10 credit unions, 50% offer the triple play, that is, mobile web, app, and text banking. The percentage of consumers using mobile banking at credit unions is only 19%. There is still room for credit unions to grow, as 80% of the largest regional banks provide all three services and adoption increased to 28%. Consumer mobile banking growth follows...

Dec 5, 2012

Javelin’s Online Retail Payments Forecast Analyzes Mix of Traditional and Alternative Payments: 2012-2017

San Francisco, CA, December 5, 2012 – Buoyed by consumer optimism and a rebounding economy, the domestic online retail market grew by 13% this year and is expected to reach $318 billion by the end of 2012. E-commerce merchants saw a number of significant and positive changes including increases in average order value across all payment types. Javelin Strategy & Research’s latest report found increasing reliance on online alternative payments methods, especially credit services such as Bill Me Later, as well as increasing reliance on the mobile device.

Close to one out of every fifteen online purchases now originate from a mobile device, as this channel has experienced rapid adoption throughout the online retail sector. Use of alternative payments methods is also continuing to evolve and is being propelled by the online credit service Bill Me Later, which jumped from just 1% of consumers using the service in 2010 to 21%of consumers in 2012. While credit cards are still the go-to payment option for larger transactions, the average purchase amount using online credit service Bill Me Later...

Dec 3, 2012

San Francisco, December 3, 2012Greenwich Associates, the leading global financial services consultancy, announced today that it has reached an agreement in principle to acquire Javelin Strategy & Research.

Javelin Strategy & Research, based in Pleasanton, CA, provides strategic insights and research in retail financial services, with deep expertise in mobile and multichannel banking, payments, security and fraud. Javelin’s clients include leading financial institutions, government agencies, payments companies, merchants, and other technology providers.

The transaction is expected to be complete by the end of 2012.

“Javelin provides exceptionally high quality research and insights in areas of critical importance in financial services,” says Greenwich Associates CEO Steve Busby. “Clients of both Javelin and Greenwich Associates will benefit from the combined expertise of the two organizations in terms of better insights, faster access to data, product expansion, and an integrated view across both retail and commercial segments.”

Benefits to the Marketplace
The integration of Javelin Strategy & Research’s...

Nov 28, 2012

Javelin Ranks Chase, Bank of America, and USAA as Top Mobile Banking Providers

San Francisco, CA, November 28, 2012 – Mobile banking is on the rise, now used by 33% of mobile consumers, up from 24% in 2011. Of the top 25 US financial institutions by deposit, about half are offering mobile person-to-person (P2P) transfers and mobile remote deposit capabilities, a figure that has more than doubled since 2011. Javelin Strategy & Research’s latest report examines and evaluates the 25 leading U.S. retail financial institutions (FIs) mobile banking offerings by comparing features, mobile access, app, web and text banking, and mobile alerts.

Javelin awarded Best-in-Class to Chase for the second year in a row, citing such advanced offerings as P2P transfers, mobile deposit, and near real-time, actionable alerts. Bank of America came in second place and scored highest for providing the widest mobile accessibility both through device and mode. USAA, a perennial mobile banking powerhouse, placed third. FIs can use the benchmarks in the report to evaluate themselves against top performers, identify specific areas for improvement, and bring their mobile banking...

Oct 24, 2012

Javelin Evaluates Customers’ Preferences and Functionalities of Authentication Methods

San Francisco, CA, October 24, 2012 – Financial institutions (FIs) are challenged to determine the best authentication strategies that meet both consumer preferences and the recent FFIEC regulatory requirements for internet banking security. Javelin Strategy & Research’s latest authentication report examines the experience and perceptions of customers with a range of authentication methods. Of business bank account owners, 50% are more likely to consider robust identity verification methods to be very compelling or extremely compelling factors in choosing a new FI. Robust authentication can be an acquisition strategy for FIs to attract business customers, who increase their online banking activities when presented with strong and effective authentication solutions.

Despite limited mention of biometrics in the recent FFIEC Supplement to Authentication in an Internet Banking Environment ,Javelin predicts that FIs will begin deploying biometric technology in 2013 to authenticate their internet banking customers. Javelin’s report examines the relative effectiveness, ease of use, and costs of authentication solutions to help FIs determine the...

Oct 17, 2012

Javelin Guides Financial Institutions to “Push” Effective Alerts to Users

San Francisco, CA, October 17, 2012 – Financial alerts are an increasingly important component of interactive personal finance management. However, a new report by Javelin Research & Strategy identified a significant gap between usefulness and adoption of alerts. We would expect the most tech-savvy and heaviest users to find alerts invaluable. But Javelin’s research actually found that 1 in 2 mobile bankers do not consider current alerts to be very or extremely useful.

Financial institutions (FIs) need to focus on creating more value through alerts and leveraging the latest alert technology – push notification alerts – to deliver compelling alerts to consumers and transform interactive finance in the process. Javelin’s comprehensive alerts  report highlights the steps and key investments that FIs need to make to boost alert adoption. The report also presents an interview with Bank of America about its emphasis on push notifications within its new mobile banking app.

Push notification alerts – which are delivered within mobile apps rather than via email or SMS text –...

Oct 11, 2012

Javelin Presents Business Strategy and Requirements for EMV Rollout in the United States

San Francisco, CA, October 11, 2012 – EMV standards - in use in all other industrialized countries around the world - are finally coming to the United States. A new report by Javelin Strategy & Research forecasts 60% of terminals in the U.S. will be EMV-capable by October 2015. As a follow-on to its Battle for Control of Mobile Wallet report, Javelin examines key market forces that will drive EMV adoption, including mobile payments, EMV’s support of near field communication (NFC) technology, and the potential to incorporate mobile technology to reduce card-not-present (CNP) fraud.

Globally, an estimated 76% of terminals and 45% of cards are EMV‐enabled, yet the U.S. has lagged behind with only 10% of terminals deployed and less than 1% EMV card adoption. But the development of mobile payments technologies has provided the impetus to drive EMV. The potential of mobile payments based on NFC - Javelin’s pick as the likely most successful mobile payments technology for the long-term - provides a powerful justification for merchants to invest in dual‐interface EMV terminals that support contactless NFC transactions and NFC-based mobile...

Sep 26, 2012

Javelin Advises Retailers and Vendors to Rethink Mobile Shopping Strategies in Time for the Holidays

San Francisco, CA, September 26, 2012 – Mobile purchasing is revolutionizing all aspects of shopping, both online and in store shopping. A new report by Javelin Strategy & Research found consumers spent more than $20.7 billion shopping using mobile devices- especially tablets. Approximately $5 billion of mobile purchases were made through tablets last year. With holiday shopping just around the corner and other driving forces, the number of people owning tablets is expected to more than double within the next three years. This dramatic adoption will lead to an explosion in retail purchasing using tablet devices. The increase in purchasing further solidifies mobile as the channel to watch.

Javelin found striking differences between mobile phone purchases and tablet purchases. Consumers spend an average of $10 more per purchase using a tablet compared to the average purchase made through a mobile device. Even within the tablet world, there are noticeable differences between amount, type, and frequency of purchases made by Kindle Fire and Apple iPad owners.

“With large-screen real estate and mobile...

Sep 12, 2012

Javelin’s Strategic Report Identifies Three Key Investments to Jolt Flat-Lining Bill-Payment Growth

San Francisco, CA, September 12, 2012 – The banking industry can jolt online banking and online bill pay back to life by converting 22 million Americans who already pay bills online at biller websites, according to a report released by Javelin Strategy & Research. Javelin’s “how-to” report recommends three top-priority investments and five marketing messages that will best tempt consumers to break their habit of paying bills at biller websites, and assesses the return on investment for FIs.

FIs can Spur Adoption by Converting Consumers

Building on Javelin’s 2012 Online Banking and Bill-Payment Forecast report last month, Javelin’s current report details how FIs can reposition their bill pay offerings as part of a broader -- and smarter -- money management set of tools. Consumer preference for paying bills online at their FIs outweighs their preference for paying bills at biller sites, with consumers opting to pay...

Sep 10, 2012

Financial Services Analyst Firm Portray the Future of NFC and Cloud-based Mobile Wallet

San Francisco, CA, September 10, 2012 – A new report from Javelin Strategy & Research defines the mobile wallet industry in its initial stages, with many players like Apple IPhone5 and others entering the field, jostling to grab early market leadership, and technologies to increase use and adoption. Visa and PayPal top the list of consumers’ preferred mobile wallet providers at 15% and 13%, while mobile network operators Verizon and AT&T (with the Isis wallet), and Apple, are close behind. To become a valued mobile wallet provider, consumers consider three important factors---trust, innovation, and privacy. A balanced approach of the three is more important to consumers, as PayPal and Visa have demonstrated with high scores in all three categories. FIs are well positioned to leverage their customers’ high perceptions of FI privacy protection, trustworthiness, and even innovation to become mobile wallet market leaders.

While mobile payments and mobile POS purchasing experienced little adoption, there is a growing pent up demand from consumers as new...

Aug 22, 2012

Javelin’s 10th Annual Online Banking and Bill Pay Forecast Reveals Key Strategies and Consumer Segments for Banks

San Francisco, CA, August 22, 2012 – A new report from Javelin Strategy & Research reveals how financial institutions (FIs) can reinvigorate online banking and bill pay, boosting online banking and FI-bill pay usage. Adoption of online banking, bill pay and bill view at FIs has maxed out, with minimal growth projected over the next five years. However, FIs can revitalize their online banking and bill pay offerings by shifting from a traditional transactional role to a more consultative one, making online banking the cornerstone of interactive financial management, and pursuing new consumer segments.

Millions of Americans are evaluating banking relationships based on the expectation that FIs should help them be smarter with their money and that paying bills online should be a snap. Half of consumers who switched or considered switching in the past 12 months, felt online banking helps to manage their personal finances effectively. For consumers looking forward in the coming year of possibly switching banks, this number climbs to 72%. Online banking and bill pay needs to deliver on its promise to make them effective...

Aug 8, 2012

PayPal Reigns But Faces Threats From Contenders ­Popmoney and clearXchange

San Francisco, CA, August 8, 2012 – A new report from Javelin Strategy & Research estimates that consumers transferred over $195 billion in 2011 using online, mobile, and other electronic channels. Person-to-person transfers accounted for $21.6 billion of the transfer market, while the bulk of transfers were made between individuals’ own accounts.  Three primary contenders are vying for the top position supporting these transfers: PayPal reigns as the current market leader, but Fiserv’s Popmoney and the clearXchange consortium pose serious threats with networks linking thousands of financial institutions (FIs) and consumers.

Popmoney connects 1,400 FIs and a potential 16% of U.S. banking customers through their existing online and mobile banking relationships.  Similarly, clearXchange - a partnership among Bank of America, JPMorgan Chase, and Wells Fargo - represents 37% of the total U.S. banking market. In the past year, one-third of consumers made an online P2P transfer, while fewer than one-in-ten completed a mobile transfer, but the potential for both channels is continuing to grow.

A True Winner Has Yet to Emerge Within the P2P Ecosystem

...
Jul 16, 2012

Javelin Outlines a Path for 2D Bar Codes from Mobile Marketing and Advertising to Payments

San Francisco, CA, July 16, 2012 – A new report from Javelin Strategy & Research provides an in-depth look at QR (quick-response) codes and other 2D bar codes. Javelin identifies key consumer segments that frequently scan them and best practices from merchants, retailers, (such as Apple, Starbucks, and Groupon) and financial services industry (e.g, FIS-Paydiant) on how to leverage QR codes. Javelin analyzes how QR codes enhance mobile marketing, advertising and payments strategies and examines how Apple’s Passbook will change the market.

By incorporating social media and geolocation into QR and other 2D bar codes, merchants can move beyond mobile advertising and marketing and provide consumers with robust and “right now” experiences. Starbucks Mobile Pay 2D bar code application allows consumers to link their Starbucks prepaid card to their smartphones to transact. Similarly, Groupon uses QR codes to allow consumers to use their mobile phones as tickets or coupons. Apple’s Passbook will enhance the consumer experience by allowing consumers to aggregate a variety of merchant applications that use 2D bar codes, including QR codes, into a wallet on their iPhones and providing easy “top of phone” access...

Jul 11, 2012

How FIs and Alternative Payment Vendors can Mitigate Credit Card Fraud

San Francisco, CA, July 11, 2012 – A new report from Javelin Strategy & Research reveals that small business owners (SMBO) experience a fraud rate almost double that of non-business owners and over 83% is credit card fraud. SMBOs are more open to using alternative payments methods, such as PayPal and Google Checkout, than non-business owners.

Small businesses tend to engage in risky behavior, which contribute to a higher incidence rate of fraud. They intermingle their personal and business accounts, potentially compromising personal information during business transactions and vice versa.

Almost three-quarters of SMBOs have used alternative payments for online purchasing and bill pay, which is almost double the average consumer. PayPal and other alternative payment providers have an opportunity to gain market share from this vulnerable - and receptive -SMBO segment. In fact, SMBOs rate PayPal second only to Visa as best in protecting their personal information.

"Small business owners need to be aware that their own behavior makes them vulnerable to fraud," said Victor Wheatman, Director of Security, Risk, and Fraud at Javelin....

Jun 21, 2012
Citi, Bank of America and Other Giant Banks are Highly Vulnerable, According to Javelin Bankographic Benchmark™

San Francisco, CA, June 21, 2012 – A new report from Javelin Strategy & Research indicates 11% of consumers are likely to switch primary financial institutions (FIs) in 2012. Giant banks face even larger defections, with Citibank and Bank of America at risk of losing twice as many customers.

The Javelin FI Vulnerability Index™ estimates huge potential losses for FIs because switchers manage $675 billion in deposits, and manage deposits that are 30% higher than customers who are unlikely to switch. Likely switchers also are willing to pay an estimated $92 million in fees for just four value-added services: money orders, cashier's checks, safe-deposit box rentals, and mobile deposit. The report examines the factors behind why customers stay - or leave - their primary FI and recommends specific strategies that giant banks, regional banks, community banks and credit unions can use to compete and capture these switchers -- and their billions in deposits.

"Bank...

Jun 14, 2012

Javelin Identifies the “Mobile Underbanked Consumer” as Strategic Market Segments

San Francisco, CA, June 14, 2012Javelin Strategy & Research’s latest report - “Reaching the Underbanked and Unbanked Consumers in 2012: Strategies for Connecting with Mobile Financial Services” - delves into the world of the underbanked and unbanked, identifying future profitable consumers and revenue opportunities for financial institutions (FIs). Javelin defines the underbanked as U.S. adults without a checking account, while unbanked consumers do not have a banking account. Comprising an estimated 35 million US adults (or 15% of the US population), underbanked are typically young, ethnically diverse, and more likely to use the “computer in their pocket” (i.e. their mobile phones) to conduct their banking. Javelin’s report provides key recommendations on the specific types of mobile financial services FIs need to offer the underbanked in order to connect with this underserved market segment.

 

FIs can engage the...

Jun 12, 2012

Javelin Awards Top Honors to Bank of America, American Express, BB&T, Capital One and Discover

San Francisco, CA, June 12, 2012Javelin Strategy & Research’s Eighth Annual Card Issuers’ Safety Scorecard reveals that fraud prevention declined for the third year in a row, while fraud detection increased dramatically. Javelin evaluated the customer-facing security measures of 23 of the top U.S. credit card issuers, by cards outstanding, using its Prevention, Detection, and ResolutionTM (PDR) model. Javelin found that issuers met 44% of fraud prevention criteria in 2012, declining from 54% in 2011. This decline in prevention activities correlates with Javelin’s recent consumer research showing that credit card identity fraud increased by 87% in 2011. But there is good news. Fraud detection tools have been increasing. Issuers met 61% of the detection criteria in 2012, up from 49% in 2011. This increased effort in detection, even with more challenging fraudster’s strategies, has resulted in total cost of fraud rising marginally, signaling that card issuers are investing in processes to detect fraud earlier.

Issuers were scored on a base of 100 points for meeting 60 different criteria in prevention, detection and resolution processes. Javelin awarded top...

Jun 6, 2012

Javelin’s 2012-2017 Retail Point of Sale Forecast Reveals Mobile and Prepaid Cards Are the Fastest Growing Payment Options

San Francisco, CA, June 6, 2012 – Javelin Strategy & Research’s latest report - “2012-2017: Retail Point of Sale Forecast: Cash is No Longer King; Cards and Mobile Payments Likely to Rise” - identifies the key drivers influencing consumer top-of-wallet payment choices and reveals that traditional credit and debit cards have knocked cash from its pedestal as consumers’ traditionally favored payment method. Although cash is the most widely used method of payment, debit cards have the largest share of the retail point of sale (POS) market by purchase volume, followed closely by credit cards. Debit and credit cards will continue to dominate market share and will further pull dollar volume from traditional paper-based payment options; specifically, cash and paper checks. Javelin’s Retail Point of Sale Forecast report examines the current state of the retail POS market and predicts the shift in consumer use of credit cards, debit cards, cash, paper checks, prepaid cards, gift cards, and mobile phone payments through 2017 Mobile and prepaid cards are two of the fastest growing payments options.

Mobile phone...

Jun 5, 2012

Javelin’s 2012 Annual Security Report Shows Banks How To “Move the Needle” on Security Usage and Boost Gen Y Retention

San Francisco, CA, June 4, 2012Javelin Strategy & Research’s latest report - “2012 Antivirus Software and Browser Security Report” - shows that offering superior security drives bank loyalty, as one-third of household financial managers indicate that security is one of the top three factors they take into consideration when choosing a new financial institution (FI). However, Gen Y (born between 1979 and 1999), the most “plugged in” generation, demonstrates a false sense of security. Almost one in ten Gen Y consumers do not use antivirus software because they use a Mac. Yet last month, more than 600,000 Macs - perceived as the most impenetrable computer - were infected with “Flashback” malware.

Javelin provides key recommendations to FIs on how to connect with Gen Y consumers, a lucrative and attractive banking target market, and turning these security risk-takers into loyal and profitable customers. This report also explores how security software suppliers and potential distributors (including financial institutions, billers and issuers) have the opportunity to...

May 8, 2012

San Francisco, CA, May 8, 2012Javelin Strategy & Research’s latest report -- “Customer-Driven Architecture 2012” -- reveals that while consumers are beginning to embrace digital financial management, they remain hesitant to dive in completely. One indication today: More consumers receive their statements online than through the mail, but more than 25% of consumers double dip -- receiving both paper and electronic statements.

Digital financial management offers both financial institutions (FIs) and billers a gateway to deeper customer engagement and increased profitability, while consumers can gain greater control, access, and security of their finances. Javelin’s Customer-Driven Architecture TM provides a blueprint for converting consumers to a digital lifestyle and outlines the seven sequential steps that will enable FIs and billers to transform customers into digital financial managers. Digital financial management is still in its infancy. To date, the financial services industry has focused on turning off paper statements as a practical first step with tangible, measurable results. But, paper suppression has not led to a fully digital management lifestyle, as evidenced by the surprisingly high...

Apr 18, 2012

Tablet Adoption growing to 40% by 2016--Javelin Provides Winning Strategies for Tablet Banking

San Francisco, CA, April 18, 2012Javelin Strategy & Research’s latest report - “2012 Tablet and Banking Report” - assesses the booming tablet banking market, as mobile banking by tablet owners is now growing at twice the rate of non-tablet owners (49% vs. 22%). This growth will continue as overall tablet adoption is forecasted to grow to 40% by 2016. While the majority of top banks have iPad and Android apps, three financial institutions (FIs) - Bank of America, Citi and USAA - have emerged as tablet banking market leaders. FIs can use Javelin’s analysis of market data on tablets, consumer’s behaviors and preferences, changing market share of operating platforms, and key recommendations to develop winning strategies for the tablet banking market.

Bank of America, Citi and USAA have each pursued a different strategy in tablet banking. Bank of America leads with native - or tablet-optimized - apps. While a majority of the top 25 banks have iPad and Android apps, less than 20% have native tablet apps specifically designed for the iPad, Android or Kindle Fire (Android-based platform) versus ported over smartphone apps. Bank of America is...

Apr 11, 2012

Javelin Investigates Growing Prepaid Card Use Among Underserved Consumer Segments

San Francisco, CA, April 11, 2012 – Javelin Strategy & Research’s latest report - “Prepaid Cards and Products in 2012” – identifies that prepaid cards are particularly attractive to underserved segments—young consumers (notably Gen Y) and underbanked consumers (those who are not actively engaged in the use of traditional banking products) who want to build financial independence.  Prepaid cards are held by one in six underbanked consumers and young consumers, respectively.

The use of prepaid cards has increased, while ownership of other traditional financial products –including checking accounts, savings accounts, credit cards, and debit cards – has noticeably decreased.  The growth of prepaid products has been propelled by a flurry of innovative features such as advanced online and mobile account management, rewards programs, and credit history development. Financial institutions (FIs) can leverage prepaid cards to establish relationships with young and underbanked consumers, transforming them into loyal customers who can become more profitable as they engage with additional banking products such as checking...

Apr 3, 2012

Javelin’s Evaluates New Bill-Pay Offerings and Profiles 10 Up-and-Coming Vendors

San Francisco, CA, April 3, 2012 – In “Bill-Pay Innovators,” a two-part series, Javelin Strategy & Research investigates new players in the arena of bill payment that are providing more choices and flexibility for consumers to pay their bills, as well as examining the challenges and opportunities they present for financial institutions (FIs) and biller-direct models. More than 14% of consumers and 17% of the profitable Gen Y segment are not managing their finances. Consumers’ lack of financial awareness translates into customers that incur penalties and fees. These types of bill payment services could help consumers increase their financial control. Innovators have the potential to cloud the market by offering more compelling bill-pay packages than those currently available from FIs and billers.

Javelin’s first report, What Challengers Must Do To Reshape How Americans Pay Bills, reveals that while innovators are raising the stakes for bill pay, they still lack the essential four-part combination that fully meets consumers’ needs for...

Mar 8, 2012
Javelin's TIP Model™ Identifies Brand Influence on Mobile Purchasing

San Francisco, CA, March 8, 2012 Javelin Strategy & Research's latest report examines the convergence of the latest mobile-social media technology cycle with mobile payments.  The report explored consumers' perception of brands and mobile banking and identifies the likely companies that will be leaders in mobile commerce. With almost $200 billion in combined 2011 revenues, Apple, Google, Facebook, and Amazon are well positioned to take the lead in mobile payments landscape. However, the top mobile payments spot is still up for grabs, as consumers trust PayPal, Visa, and their own banks for making financial transactions compared to mobile networks, social media, and online retailers.

The report reveals the shift in consumer mobile behaviors over the past two years and spotlights emerging market opportunities for mobile wallets. In 2011, consumers' mobile purchases of physical goods skyrocketed to 41% from 14% in 2009, while those of ringtones, which once dominated the market, decreased significantly. This shift from "nice to have" to "needs" indicates how consumers are beginning to find more value in purchasing via mobile devices.

Using its TIP (Trust-Innovation-Privacy) Model™, Javelin...

Feb 29, 2012

Javelin’s 2012 Bank Fees Report Analyzes Checking Account Fees and Scenarios Over the Past Decade Among Top, Midsized, and Community Banks

San Francisco, CA, February 29, 2012Javelin Strategy & Research’s latest report uncovers the upward trend in checking account and banking transaction fees over the past ten years across banks of all sizes. Today, bank consumers pay 26% more in basic demand deposit account (DDA) fees and 53% more for returns of deposited items than they would have in 2002. Javelin’s analysis of three checking account scenarios reveals that the most common DDA fee components - monthly account fees, in-network ATM fees, and out-of-network ATM fees - increased scenario costs more than 20% over the past five years.

Large banks typically charge higher fees for basic checking, while midsized banks charge less than two-thirds of the rate charged by the top ten banks. Consumers can evaluate FIs’ offerings, weighing fees for basic checking against access to the latest mobile and online banking technologies, which can help consumers reduce overall banking expenses.

While financial institutions (FIs) are charging higher fees to recoup lost revenue due to Durbin and other regulations, they are also offering value-added and technology-based services such as...

Feb 22, 2012

Consumers’ Social and Mobile Behaviors May Be Putting Them at Greater Risk

Data Breach Victims 9.5 Times More Likely To Be Fraud Victims


SAN FRANCISCO, February 22, 2012 – The 2012 Identity Fraud Report: Social Media and Mobile Forming the New Fraud Frontier, released today by Javelin Strategy & Research (www.javelinstrategy.com), reports that in 2011 identity fraud increased by 13 percent.   More than 11.6 million adults became a victim of identity fraud in the United States, while the dollar amount stolen held steady. The report also took the nation’s most comprehensive quantitative look at consumer behavior and fraud and found consumers’ social media and mobile behaviors may be putting them at greater risk.

Identity Fraud Rate Rose in 2011


Javelin Strategy & Research, Made Possible by Fiserv, Intersections Inc., Wells Fargo

Now in its ninth consecutive year, the...

Feb 6, 2012

San Francisco, CA, February 6, 2012 Javelin Strategy & Research’s latest report uncovers a widening gap between mobile banking adoption rates at smaller banks and credit unions compared to larger financial institutions (FIs). Only 21% of consumers at regional and community banks and 15% of consumers at credit unions use mobile banking versus 37% of consumers at giant banks.  Mobile banking is growing rapidly, and smaller FIs will continue to fall behind, unless they change their strategies to improve their offerings and capture a solid customer base of mobile bankers. Javelin’s latest mobile channel forecast addresses how banks and credit unions can position themselves to succeed as mobile banking institutions and keep pace with larger FIs.

More than 50% of consumers are expected to become mobile bankers by 2016.  With 92% of the top 25 banks now offering mobile banking, smaller banks and credit unions risk losing valuable customers to these institutions and must focus on building out their mobile banking capabilities in order to compete.

“The key challenge for smaller FIs is attracting the right demographics,” said Mary Monahan, Executive Vice President and Research Director, Mobile at Javelin. “The typical mobile banking customer is young (ages...

Jan 24, 2012

Javelin’s 2011 Consumer Payments Behavior Report Examines How Financial Institutions Lost the Initial Public Relations Battle Related to the Durbin Amendment

San Francisco, CA, January 24, 2012Javelin Strategy & Research’s latest report examines how recent debit card regulations have transformed market incentives for payments, creating a confusing environment for consumers. For years, banks and merchants have actively encouraged debit card use, and 73% of consumers report that they are satisfied with the debit card option. Now, debit card issuers are facing a combined $12.2 billion loss due to revenue-pinching regulations. On the one hand, many FIs are reacting by steering consumers toward more profitable credit cards. On the other hand, most merchants will benefit from Durbin-driven reductions in interchange fees and are encouraging debit card use. However, small-ticket merchants have seen their costs for debit acceptance rise significantly, and these merchants often encourage the use of cash or other payment options rather than more costly debit cards. As a result, consumers are facing a bewildering onslaught of mixed messages about...

Jan 10, 2012

Javelin’s Report Delves into How Financial Institutions Can Use Twitter as a Successful Customer
Service Channel

San Francisco, CA, January 10, 2012 – Javelin Strategy & Research’s (www.javelinstrategy.com) latest report investigates consumer personal finance behaviors toward social media, including two groundbreaking case studies of three trail-blazing financial institutions (FIs) that are taking the conversation to the consumer on Twitter. While most Americans are resistant to mixing social media and personal finances, a new trend is emerging: one in ten consumers are comfortable using social media sites to review or check account balances. Javelin presents key recommendations on how FIs can develop effective strategies to engage consumers through social media, while addressing privacy and security concerns.

Throughout the weeks of vocal protest spanning Bank of America’s announcement and retraction of $5 debit card
fees, Bank Transfer Day, and Occupy Wall Street protests, Twitter volume jumped threefold at the customer service “handles” at these three banks: Citi, Bank of America, and Wells Fargo. Citi appeared to be doing the best job of providing direct answers to consumers’ questions via Twitter and was able to resolve 36% of its...

Dec 16, 2011

Javelin’s 2011 Mobile Security Report Evaluates Mobile Banking Security By Channel and Offers a Checklist of Solutions

San Francisco, CA, December 16, 2011Javelin Strategy & Research’s latest Mobile Banking Security report evaluates the specific security issues mobile bankers face when using three mobile banking channels: web browser, application, and SMS texting. With 44% of banking consumers, the mobile browser is the most widely used of the three channels and is perceived by the consumer to be the most secure. Mobile bankers with smartphones view the browser as an extension of online banking. However, banking using a downloaded app is the second most widely used channel and actually the safest for mobile bankers, with 25% of consumers using this channel. This channel is. App banking has the potential to replace online banking altogether and serve as the consumer’s primary access to the FI.

SMS banking, used by 19% of mobile bakers, is declining in popularity and is the least secure channel. Consumers are using both their smartphones and feature phones primarily to check account balances and receive text message alerts.

“Like the great land rush, some FIs are hurrying in to carve out their territory in the...

Dec 15, 2011

Javelin’s Top Ten Trend Report Spotlights Changes Expected in 2012 in Banking, Payments, Mobile, and Security

San Francisco, CA, December 15, 2011 –Javelin Strategy & Research’s latest report identifies and evaluates the leading trends that will transform banking, payments, mobile and security in 2012. These trends highlight a rapidly evolving arena in which tools like mobile and social media, events like social protest, and even the actions of government regulators have a hand in guiding change. Key trends identified by Javelin include:

Visa makes its EMV push, and issuers and merchants must contend with security, liability, and infrastructure repercussions. EMV offers protection against card present fraud, but requires a complete overhaul of POS payments technology infrastructure. Stakeholders must still address card-not-present (CNP) fraud, with merchants potentially assuming liability. New competing technologies offer similar security for both card present and CNP transactions and still work within the existing payments infrastructure, while the up and coming near-field communication (NFC) for contactless transactions utilizes the same terminals as EMV.

“It’s decision time for issuers and merchants as to whether and how they will support EMV or modified magnetic stripe technology,” said

Read More

Dec 6, 2011

Javelin’s Seventh Annual Banking Identity Safety Scorecard Highlights Trends, Crowns Bank of America, Citibank, Navy Federal Credit Union, Huntington, U.S. Bank as Winners

San Francisco, CA, December 6, 2011 Javelin Strategy & Research’s latest banking identity safety scorecard found financial institutions (FIs) aren’t keeping up with growing security demands. As fraud is growing more troublesome, Javelin has had to strengthen the criteria it uses to evaluate FIs and found that prevention, detection, and resolution scores have all eroded. Most importantly, prevention - which offers the greatest ROI to both consumers and FIs - has fallen precipitously, from 2009 with 79% of FIs meeting Javelin’s criteria to only 54% of FIs in 2011. To improve prevention capabilities, Javelin recommends that FIs prioritize authentication and diversify their authentication offerings.

A key form of lapses in authentication stem from using partial or full social security numbers (SSN), which have become synonymous with the consumer’s identity. None of the FIs included in this scorecard prohibited the use of SSN for phone, mail or Internet authentication. Instead they focused other areas of increasing authentication security measures such as 40% of FIs provided...

Dec 1, 2011

Javelin’s 2011 Personal Finance Management Report Introduces a Revolutionary PFM Model that Boosts Both Bank Profitability and Consumer Confidence with Money Management

San Francisco, CA, December 2, 2011 – Javelin Strategy & Research’s latest report radically redefines Personal Finance Management (PFM) for both financial institutions (FIs) and consumers. Consumers seek PFM solutions to monitor and manage their money more effectively from multiple accounts and multiple FIs. Javelin’s report guides FIs on how to provide consumers with a “view + do” PFM model right from the moment they log into their online accounts-not from a tab. This one-stop view offers aggregation of outside accounts, easily view and pay all bills, and categorize spending.

More than 14% of consumers - and 17% of the profitable Gen Y segment - are not managing or monitoring their finances. This creates a ripple effect of problems not only for those consumers, but also for the FIs that service them. Consumers’ lack of financial awareness translates into customers that incur penalties and fees and creates risky lending prospects for FIs. Javelin also found that while consumers do have concerns about security, privacy, and information clutter around PFM, consumer needs for practicality,...

Nov 27, 2011

San Francisco, CA, November 28, 2011 – Javelin Strategy & Research’s latest Online Retail Payments Forecast report identifies a significant shift in the balance between credit and debit use for online purchases. With changing market conditions and new regulations causing credit cards to regain transaction share, credit cards are increasing their share of the consumer’s wallet for online purchases. The study shows a robust 16% increase in the U.S. online market as retail e-commerce sales continue to rise to $309 billion in 2011 and are further forecast to climb to an estimated $444 billion by 2016.

“After several years of declining use, credit cards are poised for resurgence,” said Beth Robertson, Director of Payments Research at Javelin. “Despite the nation’s very rocky economic recovery, consumers appear to have halted their belt-tightening and bank incentives to use credit cards rather than debit are gaining appeal.” In the five-year period from 2011 to 2016, assuming that the Durbin Amendment regulating debit card interchange stands, Javelin projects that total payments volume (TPV) for the online use of credit cards by U.S. consumers will climb 63%, while the TPV for debit cards is expected to rise just 2% during that same period.

Javelin’s 4th Annual Online Retail...

Nov 9, 2011

Javelin’s Third Annual Report Reveals the Mobile Offerings of Winners JPMorgan Chase, Wells Fargo, Bank of America, and Others

San Francisco, CA, November 9, 2011 – Javelin Strategy & Research’s latest report —2011 Mobile Banking Scorecard: Money Begins to Move —evaluates the abilities of financial institutions (FIs) to meet consumers’ growing mobile banking needs as they evolve from mobile account monitoring to mobile money movement and beyond. Javelin’s third Mobile Banking Scorecard examines the 23 mobile banking offerings of the 25 largest retail banking FIs and identifies the best performers in the areas of mobile access, general features, SMS text features, marketing and security. The report spotlights emerging mobile banking trends and outlines the strategies that FIs must deploy to stay ahead of - and satisfy - customer demands.

Javelin announces the winners of its third annual scorecard of mobile bank offerings. JPMorgan Chase was awarded Javelin’s Best in Class Mobile Banking for 2011 by providing a broad range of features and specialty apps to complement its mobile offering, including person‐to‐person transfers (P2P), account rewards, and mobile remote deposit capture. Rounding out the Gold award winners (FIs scoring 70% or above on key criteria) included...

Oct 19, 2011
Javelin’s Online Account Opening (OAO) Report Reveals Banks Are Unnecessarily Losing Over $873 million of Potential Revenue, As Consumers Walk Away Frustrated

San Francisco, CA, October 19, 2011 – On the heels of banks charging fees on debit card usage due to declining revenue, Javelin Strategy & Research’s latest research report — “2011 Online Account Opening (OAO): Faulty Process Hobbles FIs in the Battle for Customer Acquisition, Profitability and Retention” —  reveals that financial institutions (FIs) lost at least $873 million dollar, conservatively, in potential revenue, as 5.8 million customers attempted - and failed - to open accounts online (OAO). Encountering failure, consumers engaged in an application process that was more costly for FIs or abandoned their efforts and took their business elsewhere. The report is based on data collected from more than 5,000 consumers, as well as examination of online account offerings at the 10 largest U.S. FIs and five technologically oriented smaller banks and credit unions. Javelin identifies the obstacles consumers experience when opening accounts online, analyzes the success and failure rates of different consumer segments, and recommends specific actions FIs can take to fix the process.

First impressions are everything, and FIs...
Oct 11, 2011

Javelin’s 2011 Online Retail Payments Scorecard Names L.L.Bean as Best Overall Website for Consumer-Facing Payments Features

San Francisco, CA, October 11, 2011 –– Javelin Strategy & Research’s latest research report — “2011 Online Retail Payments Scorecard: New Options to Maximize Online Shopping Revenue” — evaluates the consumer-facing payments features of 20 top online merchants in four major categories: payments information, payments options, payments security, and customer support. The report identifies the best practices of the highest scoring online retailers and offers specific recommendations on how e-commerce merchants can improve their websites to capture larger shares of growing online retail revenues.

Javelin’s top-ranked merchants for consumer-facing payments criteria are:

  • Best in class/Best overall: L.L.Bean
  • Best in payments information: HSN
  • Best in payments options: Amazon
  • Best in payments security: Overstock.com
  • Best in customer support: Best Buy and Buy.com

With total transaction volume for online retail purchases expected to reach approximately $443 billion by 2015, Javelin’s report identifies best practices that merchants can use to boost their online...

Oct 4, 2011

Javelin’s Third Annual Review Scores the Vendor Offerings FIs Need Now - and Consumers Demand -  for Effective and Secure Mobile Banking

San Francisco, CA, October 3, 2011 –– Javelin Strategy & Research’s latest research report — “2011 – 2012 Mobile Banking Vendor Scorecard: Mobile Banking Has Moved from a “Nice-to-Have” to a “Must-Have” Channel” —  analyzes best practices and top trends in this rapidly shifting industry and reveals the best mobile banking solutions available today. Javelin scored the offerings of 15 major vendors, using data from surveys conducted with more than 10,000 consumers and executive interviews with six financial institutions (FI). The report provides strategic guidance to FIs for development of their mobile banking strategies and selection of vendors and key insights on critical features and functionality for vendors when designing the next versions of their solutions.

Javelin highlights a number of trends which will significantly affect mobile banking for FIs, vendors, and consumers. After two years of flat growth, consumer mobile banking jumped from 19% to 30% in 2011, corresponding to a rise in FIs offering mobile banking and an increase in consumer smartphone ownership. The triple play - mobile banking via SMS text, mobile...

Sep 27, 2011

Javelin’s 7th Annual Authentication Report Identifies Key Market Opportunities and Drivers for Successful Deployment of Authentication Technologies

San Francisco, CA, September 27, 2011 –– Javelin Strategy & Research’s latest research report — “7th Annual Authentication Report: Weakening of Knowledge-Based Authentication Provides New Opportunities for Customer Acquisition and Retention” —  presents details of the authentication methods that financial institutions (FIs) can use to secure remote banking channels for online, telephone, and mobile customers and assesses consumers’ comfort level using these technologies. Javelin conducted online surveys with almost 4,300 consumers and interviews with authentication technology vendors to compile key recommendations on how FIs can leverage authentication methods to acquire and retain customers who currently use or are interested in using remote banking channels.


“Authentication is not just a first-line defense against fraud, which last year totaled $37 billion,” notes Phil Blank, Managing Director, Security, Risk, and Fraud at Javelin.  “It’s also a way to increase an FI’s customer base. Almost half of consumers in 2011 indicated that robust identity verification methods are compelling...

Sep 13, 2011

Javelin’s 9th Annual Five-Year Forecast Reveals Trends and Opportunities in Online Banking and Bill Pay

San Francisco, CA, September 13, 2011 –– Javelin Strategy & Research’s latest research report — “9th Annual Online Banking and Bill Pay Forecast: Megabanks Dominate Moneyhawks™ While Paperless Adoption and Online Bill Pay Stall” — evaluates online banking and bill pay trends by key consumer segments and analyzes transaction behavior, attitudes, and preferences of customers at large, regional banks,  community banks, and credit unions. The Javelin report, based on longitudinal surveys conducted with a total of more than 10,000 consumers, provides specific recommendations on how financial institutions (FIs) can address consumer concerns and reinvigorate online banking and bill pay.

FIs must take steps to help online banking and bill pay regain momentum thereby increasing revenue and reducing costs. Javelin’s forecast indicates that online banking has hit its saturation point among consumers, but consumers are more active, as weekly use has nearly doubled since 2005. Online bill pay has weakened for both FIs and billers. However, Javelin forecasts that FIs’ bill-pay sites will overtake the biller-direct model in 2015 and cautions FIs...

Aug 30, 2011

Javelin’s Fifth Annual Identity Protection Report Announces Winners in Identity Fraud Prevention, Detection, and Resolution, Explores Trends in Rapidly Changing Industry

San Francisco, CA, August 30, 2011 –– Javelin Strategy & Research’s report, “Fifth Annual ID Protection Services Scorecard: Increased Focus on Antivirus, Social Media, Child and Medical Identity Theft, Yet Prevention Still Lags” - presents a comprehensive overview of the ID protection services industry, analyzing industry trends and rating vendor offerings from independent ID protection vendors, credit bureaus, and financial institutions (FIs). The Javelin report scores 24 major identity protection vendors using data from surveys conducted with more than 25,000 consumers, identifying the ID protection services winners.

Javelin discovered significant variations among ID protection service offerings. For example, while many vendors authenticate, charge consumers, and begin services at the time of enrollment, more than one in five evaluated vendors accept payment but do not start providing services until consumers take additional enrollment steps.

“Antivirus software, social media, and child and medical identity fraud create challenges for all vendors,” said

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Aug 16, 2011

Javelin Recommendations Enable Financial Institutions, Other Stakeholders to Address and Respond to Durbin-Based Regulations

San Francisco, CA, August 16, 2011 –– Javelin Strategy & Research’s latest research report — “The Durbin Amendment: Planning for $ix Billion in Change to Banks, Networks, Merchants and Consumers” — addresses the mostly final Durbin-based regulations affecting debit interchange rates, network exclusivity, routing, and interim fraud provisions that the Federal Reserve announced this past June. Based on final Durbin rulings, Javelin forecasts that revenue at affected institutions will decline an estimated total of $6.6 billion per year. As financial institutions (FIs) consider the magnitude of debit card revenue shortfall and the loss of fees that traditionally subsidized free checking, many institutions are re-evaluating DDA economics.

“Seven of the top 10 banks have recently announced plans to eliminate free checking,” notes Beth Robertson, Director of Payments Research at Javelin. “Durbin is forcing a shift in how FIs structure DDA offerings, but institutions have an opportunity to repackage value-added...

Jul 19, 2011

Financial Institutions Need to Address Consumers’ Security Concerns to Get Mobile Bankers Online

San Francisco, CA, July 19, 2011 –– Javelin Strategy & Research announces its latest research report — Smartphone Mobile Banking Security: Mobile Banking Utilization Stalls As Consumers React To Security Issues”. With the explosive growth of smartphone ownership, zooming upwards of 40% since 2010, and constant buzz about such hot new technologies as mobile wallets for payments, financial institutions (FIs) expected that mobile banking growth would continue to skyrocket as well. However, Javelin’s data reveals that mobile banking has actually plateaued. The Javelin report, based on surveys conducted with more than 13,000 consumers, examines this surprising trend, identifies the real reasons why more consumers aren’t using mobile banking, and presents the steps FIs must take if they want to engage more mobile consumers.

Tech-savvy consumers are increasing their use of smartphones to do almost everything these days – everything, that is, except mobile banking and purchasing. Javelin found that the rate of adoption of mobile banking barely budged between 2010 and 2011, despite FIs’ aggressive promotion, and rates of mobile purchasing...

Jul 12, 2011

Weaker Economy and New Regulations Diminish Revenue and Customer Loyalty Benefits of Traditional Rewards Programs

San Francisco, CA, July 12, 2011 –– Javelin Strategy & Research announces its latest research report — Evolving Rewards Strategies: How Merchant-Funded Programs Will Usher in a New Era of Loyalty for FIs.” In the wake of a weaker economy and the recent passing of revenue-squeezing regulations, financial institutions (FIs) should jettison their traditional payment card-based rewards programs in favor of merchant-funded rewards that reduce costs, generate revenue, and build customer loyalty. By joining forces with FIs, merchants gain access to FIs’ transactional data to develop highly targeted marketing campaigns. The report, based on data from three surveys totaling more than 15,000 consumers, examines today’s changing payments and rewards environments, presents the key strategic ways merchant-funded rewards programs can be a win-win for both FIs and merchants, and recommends how FIs should evaluate, implement, and promote these programs.

With decreased consumer discretionary spending, FIs face revenue reductions that are only compounded by  new revenue-restricting regulations. Javelin predicts that...

Jul 5, 2011

Javelin’s Second Annual Report Outlines How Financial Institutions Can Increase Revenues While Combating Online and Mobile Fraud

San Francisco, CA, July 5, 2011 –– Javelin Strategy & Research issued today its 2011 Second Annual Antivirus, Browser, and Mobile Security report which presents a comprehensive overview of the threats —and opportunities — in the current online and mobile security environment. Data shows that financial institutions (FIs) are in an enviable position to sell security solutions to consumers to combat fraud, as almost four out of ten consumers have no identity protection services. The report, based on data from surveys with almost 25,000 consumers, presents year-to-year comparisons of consumer behaviors, evaluations of antivirus and mobile and browser security products, and highlights revenue opportunities for FIs.

Javelin identified revenue generating opportunities for FIs targeting those consumer groups where the levels of Internet device ownership are high and adoption rates of antivirus software are low. Javelin found that, overall, while consumers are using Internet devices at exploding rates - smartphone ownership alone increased 42% from 2010 to 2011, slightly more than half of consumers do not have any antivirus software....

Jun 28, 2011

Javelin’s Seventh Annual Card Issuer’s Safety Scorecard Shows How Top Card Issuers Measure Up in the Hot Seat of Protecting Consumers while Empowering them to Actively Participate in the fight against Identity Theft.

San Francisco, CA, June 28, 2011
– Javelin Strategy & Research today released its Seventh Annual Card Issuer’s Safety Scorecard, which rates the top 23 card issuers against a benchmark of Javelin’s Prevention, Detection and Resolution™ fraud model. According to Javelin, opening credit card accounts is the number one most common new account fraud, but only one of eight issuers evaluated offer alerts for new account setup. As a result, the report delves into the ways in which card issuers should provide a broader range of detection alerts, ultimately enabling consumers to customize their own protection to suit their individual needs.

This report also identifies several revenue opportunities for issuers in addition to pointing out opportunities for fraud reduction.  Areas examined include UDLAPS™ (User Defined Limits & Prohibitions), two-way actionable alerts, consumer education and fee protective services all of which fight risky transactions.

Bank of America finished “Best in Class”...

Jun 22, 2011
Javelin Identifies Opportunities as Social Media Players Bring Change to Traditional Transactions and Payments

San Francisco, CA, June 21, 2011 – A new Javelin Strategy & Research report issued today —“Virtual Currency and Social Network Payments – The New Gold Rush” focuses on the growth of virtual currencies, predicting change in traditional payments methods as U.S. revenue from virtual goods is projected to quadruple between 2009 and 2012, from $0.6 billion to $2.4 billion. The increased use of virtual currencies and socially networked payments present new challenges to traditional payments services providers, regulatory bodies, and even cross-border economies. The report, based on data from surveys with 10,000 consumers, cautions financial, Telco and online providers to monitor closely this virtual trend, as social media players create new ways to transact – and claim market share from FIs in the payments space.


Virtual currency, first used by the online gaming industry, has extended into the exploding social media market. Virtual currency can be exchanged for digital, virtual and physical goods, as well as traditional currency, and has the potential to...
Jun 14, 2011

Financial Services: Data Mining and Privacy Landmines

San Francisco, CA, June 14, 2011 ––Javelin Strategy & Research announces its latest research report —Data Mining and Predictive Analytics for the Financial Sector: Banks Hold Trust Advantage When Tracking Consumers in a Privacy Minefield”. Javelin urges FIs and third- party “affiliates” to pursue personal finance management (PFM) data mining, while avoiding potential pitfalls. Javelin’s latest report, based on data from surveys totaling more than 8,200 consumers, describes how FIs, Google, Apple and Facebook can avoid privacy issues while mining data to better serve consumers.

FIs are well positioned to access their PFM data and incorporate search and location data to provide their mobile and ready-to-buy customers with personalized financial services and offers. By doing so, FIs can establish an advantage in data mining and reap the benefits of closer customer relationships and new revenue opportunities.

“FIs that combine transaction, search, and location data create a marketer’s dream: consumers who are nearby and ready to buy,” said Mark Schwanhausser, Javelin. “As FIs...

May 24, 2011

Consumer Demand for Mobile Remote Deposit Capture Are FIs Able (and Willing) to Provide the Latest in Mobile Banking Technology?

San Francisco, CA, May 24, 2011 –– A new Javelin Strategy & Research report issued today —2011 Mobile Remote Deposit Capturereveals one in every four consumers and one in every two mobile bankers want mobile remote deposit capture (RDC) to bypass ATMs and bank branches and deposit checks using cell phones.  However, only three of the top 10 largest U.S. financial institutions— JPMorgan Chase, PNC, and U.S. Bank — currently offer this service, highlighting a huge market gap for mobile RDC. Javelin takes an in-depth look at the market for mobile RDC and answers such questions as how ready are consumers to adopt mobile RDC, how can banks meet this need, and what are the security and fraud risks of this timesaving technology? Javelin’s latest fact-based research-backed report, using data from surveys of more than 13,000 consumers and interviews with 25 bankers, examines consumer demand and bank offerings and explores the impact of mobile RDC.

Javelin data shows that over half of financial institutions (FIs) will roll out mobile RDC in the next 12 months. The report pinpoints ideal...

May 5, 2011
Javelin: How Banks and Vendors can Protect SMBOs from Identity Theft and Fraud

San Francisco, CA, May 5, 2011 – A new Javelin Strategy & Research report issued today —“2011 Small Business Owners (SMBO) Identity Fraud Report: How SMBO Fraud Rates Impact FI Revenues and Retention” describes the higher rates of fraud faced by small business owners (SMBOs) today, including unique online security challenges.  By sharing effective anti-fraud solutions with SMBOs, FIs and credit card issuers can also create revenue opportunities and reduce client churn. The report outlines the steps SMBOs can take in partnership with financial institutions (FIs) and credit card issuers to combat and prevent online fraud.

SMBOs are an attractive target for fraudsters because they conduct a myriad of transactions that often span both business and personal accounts. As small businesses, they are vulnerable in areas that fraudsters can exploit, namely, the lack of a dedicated IT staff to monitor and protect online operations and less formalized processes around security practices and credit card transactions. This creates opportunities for security breaches...
Mar 8, 2011

Javelin: How to Best Manage the Profound Changes Ahead

San Francisco, CA, March 8, 2011 – A new Javelin Strategy & Research report issued today —Payments Regulation and Consumer Expectations: How to Best Manage the Changes Aheadexplores the effects of payments regulation fostered by the Durbin Amendment, FinCEN, Consumer Financial Protection Bureau, and other regulatory bodies on payment services and consumer perception of financial institutions and merchants.

Javelin forecasts a decrease of $16.4 billion annually due to both Durbin and recent modifications to Regulation E, with a loss of approximately $10.8 billion in FI revenue specifically associated with proposed Durbin Amendment revisions. To counteract these revenue losses, FIs are planning to add or increase existing fees, restructure account offerings, and eliminate or reduce debit card rewards programs. The Javelin report presents consumer reactions to these changes and proposes strategies that financial institutions can consider to manage consumer expectations.

“While Congress touts a pro-consumer and pro-merchant message for Durbin and other regulations, our research shows that consumers are skeptical,” said Beth Robertson, Director of...

Feb 23, 2011

Javelin: Could Open Platforms and Third-Party Developers Unleash Profitable Innovation?

San Francisco, CA, February 23, 2011 – A new Javelin Strategy & Research report issued today —Envisioning an App Store Inside Online Banking: Could Open Platforms and Third-Party Developers Unleash Profitable Innovation?explores how app stores could transform online banking for consumers by creating highly personalized online banking experiences and yielding huge benefits for financial institutions, platform vendors, and developers in terms of new revenue models and opportunities for innovation.

Javelin research shows that an app store within online banking could build on consumers’ rapidly growing comfort with mobile apps. Javelin research shows that the number of consumers who downloaded mobile apps jumped 39% during the six-month period ending Q3 2010. About 19% of consumers said in November 2010 that they had downloaded a mobile app, making it a mainstream activity. Javelin forecasts that 31% of mobile phone owners — or 45 million adults — will download an app in 2011.

“Javelin has long advocated that banks and financial institutions make online banking a priority and focus on personal...

Sep 28, 2010
Javelin Report Reveals Down Economy Spurred Sharp 42% Decline in Adoption of ID Fraud Protection Services Despite 12.5% Increase in Number of Fraud Victims

San Francisco, CA, September 28, 2010 – According to a new Javelin Strategy & Research report issued today, the $2.4 billion Direct‐to‐Consumer U.S. Identity Protection Market saw a sharp 42% decline in Identity Fraud Protection Services adoption, despite a 12.5% increase in the number of U.S. adults who became victims of identity fraud in 2009.  The report also reveals Javelin’s “Best in Class” vendors for 2010, to help consumers find the best identity theft protection services for them when battling this pervasive threat.  

Javelin’s fourth annual report, “2010 Annual Identity Protection Services Scorecard: Market Challenges, Consolidations and the Move Toward ‘Whole Identity’,” found that although consumers who detected fraud using a credit report or credit‐monitoring service enjoyed a dramatic decrease in losses for average fraud amounts, fewer Americans are turning to identity fraud protection services due to the down economy and a decline in reported data breaches. “We believe that providers of identity protection services will achieve the greatest long-term success with...
Sep 23, 2010
Javelin: Mobile Banking Poised for Steady Growth over the Next Five Years

San Francisco, CA, September 23, 2010 – A new Javelin Strategy & Research report issued today – “2010 Mobile Banking and Smartphone Forecast: Fast Growing Smartphone Market Will Offset Lost Momentum in Mobile Banking” – finds that the exponential adoption of smartphones has helped stabilize mobile banking rates, which slowed in 2010 due to the dramatic drop in U.S. mobile phone penetration. Javelin predicts that mobile banking growth is poised to begin a steady and upward growth trend in 2011.

“The sharp decline in the economy and in the number of mobile phones is creating an ever-widening landscape of the ‘haves’ – who are becoming smartphone owners – and the ‘have nots,’ – who are giving up their mobile phones because they can’t afford them,” said James Van Dyke, President and Founder. “While it may take several years for the overall number of mobile phones to recover to 2009 levels, the swift increase in smartphones will drive mobile banking growth.” More than a third of smartphone owners – and well over half of iPhone owners – use mobile banking, which is over double that of all consumers.

Javelin...
Mar 17, 2010
Javelin: To build successful social networks, financial institutions must overcome consumer wariness about mixing social media and banking

San Francisco, CA, March 17, 2010 –
In a new report issued today, Javelin Strategy & Research  states that leading financial institutions are blazing a social media path by interacting with consumers in the increasingly popular social networks where they congregate and communicate – Facebook, MySpace, LinkedIn, Twitter, YouTube, blogs and other forums. Rapid adoption of social networks in 2009 led to 52% of all U.S. adults who have online access now spending time on social networks. Despite the popularity of such sites, 47% of consumers consider social networks to be unsafe and considerably fewer consumers would use them for banking.

The Social Media and Banking report, which examined consumer data about the use of and concerns about mixing social networks and banking, advises financial institutions to devise a social media security strategy now in order to protect their brand, mitigate fraud losses and retain customers. Initial efforts should target younger consumers, Asians and Latinos, who are significantly more likely to interact with their financial institutions...
Mar 12, 2010
Javelin study shows that financial institutions are missing mobile marketing opportunities and losing ground to wireless companies, retailers and ISPs

San Francisco, CA, March 12, 2010 – In 2009, wireless companies, retailers and ISPs took the lead in marketing directly to consumers through their cell phones while financial institutions lost ground. In a new report issued this week, Javelin Strategy & Research (www.javelinstrategy.com) states that financial institutions are losing revenue opportunities due to their lack of mobile marketing and advertising to a captive and willing audience.

“Our study found that mobile bankers are open to receiving mobile marketing and that twice as many mobile bankers received mobile marketing messages compared to all consumers with mobile phones. Mobile bankers are also 25% more likely than typical consumers to take action on a mobile marketing or advertising message. Financial institutions need to get on board and reach out to on-the-go, technology-savvy consumers,” said James Van Dyke, President and Founder.

According to the 2010 Mobile Marketing and Advertising report, only 23% of consumers have received mobile marketing in the past 90 days. The report defines and gives examples of...
Feb 23, 2010
Financial alerts currently lack the timeliness, convenience and control required to deliver a win-win between consumers and financial providers, according to Javelin study

San Francisco, CA, February 23, 2010 – The latest report from Javelin Strategy & Research finds that financial alerts have the potential to enable convenient, safe and profit-generating interaction between financial institutions and their customers, but changes must first be made. New mobile and online money-management technologies are available to deliver unprecedented control over how individuals monitor and manage their money in this time of distressed financial solvency, safety, and trust in banks. Today’s financial-alert services fall short, failing to provide specific timely, simple and interactive features that consumers now expect when managing content through electronic channels. Javelin’s position is based on expert assessment of over 10,000 consumer research responses collected over seven years, mystery-shop comparisons of leading banks’ features, and in-depth interviews with technology vendors.

The failure of alerts to fulfill their potential is documented in a new Javelin Strategy & Research report— Financial Alerts in 2010: Addressing Seven Critical...
Feb 17, 2010
Javelin Study Reveals That Percentage Of Retail Sales Transacted Online Also Continues To Rise

San Francisco, CA, February 17, 2010 – Despite the sluggishness of the global economy during the past two years, U.S. online transactions grew by 11 percent in 2009. At the same time, the share of total retail sales represented by online transactions continued to rise, reaching 5.5 percent in 2009. Javelin’s latest report pinpoints the opportunities and threats.

These were two of the key findings in the Online Retail Payments Forecast 2010 – 2014 report issued today by Javelin Strategy & Research. The report evaluates actual and forecasted changes in the online payment market as well as the payment mix from 2008 to 2014. The report also identifies the drivers of market change and contains forecasts for total online payment volumes and market share. Other aspects covered by the report include a breakdown of the payment volume and market share for credit cards (network and private label), debit cards, alternative payments, and prepaid/gift cards.

"As Americans purchase more online, payment habits are changing," said James Van Dyke, President and Founder. "While credit cards remain the payment method of choice, many new payment alternatives - and even more...