|Consumers increasingly open to banking by smartphones and tablets|
American consumers are rapidly becoming comfortable with conducting an extensive range of banking functions and transactions through the use of mobile and wireless devices, according to a 30-month study of application traffic sources recently completed by Andera.
"Up to now, what we've called ‘mobile banking' has largely meant using mobile phones to check account balances and transfer funds between accounts. That's changing," says Charles Kroll, president of Andera.
Kroll pointed out that the Federal Reserve Bank's study, Consumers and Mobile Financial Services, released in March 2012, stated that the most common use of mobile banking-by 90% of mobile banking users-is to check account balances or recent transactions. Transferring money between accounts is the second most common use (by 42% of users) of mobile banking.
"The Fed's report is well documented and covers the full spectrum of mobile and online banking behaviors. I believe that Andera's data show a developing trend on the leading edge of that spectrum. Our applications enable our client institutions' customers to open new accounts and apply for loans.
"In the two years since we began tracking and analyzing the sources of visits to our company's platforms, we have seen a 70.3% growth in total number of online visits. But within that total number of online visits, the portion that comes from mobile phones and tablet devices has grown dramatically-by 269%," says Kroll.
The Andera study covered five six-month segments, beginning with Jan. 1, 2010 and ending on June 30, 2012. Andera used Google Analytics to track applicant device types for the company's 15 largest client institutions. During the initial period, just 2.59% of applicants used smartphones. In the period ending June 30, 2012, 9.55% of applicants used smartphones or tablets.
"This tells me two things," says Kroll. "First, more and more consumers are getting used to dealing with their financial institutions online. But more importantly, they are feeling confident about establishing new banking relationships or expanding existing ones on a mobile, paperless platform. They are no longer using their smartphones or tablets solely to check balances or move funds.
"And the message to banks and credit unions is unmistakable: Your customers will be expecting you to deliver through this channel. Build that capability now, before they look elsewhere."
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