Mobile Banking Leaders: Credit Unions Surpass Community Banks

Dec 6, 2012

Mobile Banking Leaders: Credit Unions Surpass Community Banks

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 smartphone adoption which is now at 52%. Javelin research reported that mobile banking added 10 million more U.S. adults in the past year, as smartphone usage surpassed feature phones and tablet adoption surged to 21%.

Mobile Banking—Triple Play—by FI Type

“Rising tablet adoption is giving mobile banking its biggest boost. Over the next five years, tablet adoption rates will more than double,” said Mary Monahan, Executive Vice President and Research Director, Mobile at Javelin. “Despite a slow start, we expect Windows tablets will take market share over the next few years from Android and Apple. All FIs, regardless of size, will need to consider device use among customers and adjust their strategies to offer the right type of mobile phone and tablet mobile banking solutions.”

“Last year’s Bank Transfer Day saw over 600,000 U.S. adults move their accounts from large banks to small FIs. It was a wake-up call for credit unions and community banks to beef up their offerings,” said Jim Van Dyke, President, Javelin. “Our report shows that the top 10 credit unions took a big bite out of big banks in mobile banking this year. If credit unions continue in this direction and stay ahead of community banks, there is even more opportunity for them to take a bigger chunk out of the market.”

Javelin Strategy & Research’s 2012 Mobile Banking, Smartphone and Tablet Forecast compares mobile banking offerings by mode and by device type of the 4 largest banks, top 10 large regional banks, top 10 community banks, and top 10 credit unions based on deposit size. The report forecasts mobile phone, smartphone, and tablet adoption by device and operating system. This report is based on data collected online in six surveys of more than 20,000 respondents. The report is 44 pages long and contains 31 figures and graphs.

This report references: Alliant Credit Union, Amazon, American Airlines Federal Credit Union, Bank of America Corp., BB&T Corp., BMO Financial Corp., Boeing Employees' Credit Union, BOK Financial Corp., Capital One Financial Corp., Citigroup Inc., City National Corp., Fifth Third Bancorp, First Niagara Financial Group Inc., First Republic Bank, Golden 1 Credit Union, Google, Google, HSBC North America Holdings Inc., Hudson City Bancorp Inc., JPMorgan Chase & Co., Microsoft, Navy Federal Credit Union, New York Community Bancorp Inc., Pentagon Federal Credit Union, People's United Financial Inc., PNC Financial Services Group Inc., Popular Inc., Regions Financial Corp., RIM, San Diego County Credit Union, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees' Credit Union, SunTrust Banks Inc., SVB Financial Group, Synovus Financial Corp., TD Bank US Holding Co., and U.S. Bancorp.

Learn More: 2012 Mobile Banking, Smartphone and Tablet Forecast: Mobile Banking Gains 10 Million Users as Smartphone and Tablet Adoption Soars

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About Javelin Strategy & Research
Javelin Strategy & Research provides strategic insights into customer transactions, increasing sustainable profits for financial institutions, government, payments companies, merchants and other technology providers. Javelin’s independent insights result from a uniquely rigorous three-dimensional research process that assesses customers, providers, and the transactions ecosystem.

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