Credit unions are outperforming community banks in mobile banking, with nine out of ten credit unions offering web-based mobile banking, according to Javelin Strategy & Research.

Meanwhile, three out of ten community banks reviewed do not offer a single form of mobile banking. Javelin's 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 to benchmark themselves against the top performers in their respective banking category.

Mobile banking offerings vary by size of financial institution, and consumer adoption varies accordingly. Among the top ten 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 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 financial institution type

"Rising tablet adoption is giving mobile banking its biggest boost. Over the next five years, tablet adoption rates will more than double," says 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 financial institutions, 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 financial institutions. It was a wake-up call for credit unions and community banks to beef up their offerings," says Jim Van Dyke, president, Javelin. "Our report shows that the top ten 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."

https://www.javelinstrategy.com/news/1376/92/Mobile-Banking-Leaders-Credit-Unions-Surpass-Community-Banks/d,pressRoomDetail

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