1. Compete Financial Services
Mobile Banking

2. What You’ll Gain From This White Paper
This white paper provides an update of mobile financial service (FS) trends that
occurred during Q2 2011. We aim to provide you with a clear sense of what is
currently going on in the Mobile Banking landscape by examining key metrics
– derived from Compete’s panel of two million consumers – to evaluate and
benchmark how the industry is performing.
This paper is complemented by four other papers: Mobile Money, which examines
the mobile wallet landscape overall, and industry-specific papers on Mobile Credit
Cards, Mobile Investing, and Mobile Auto Insurance.
The data enclosed comes from Compete’s Mobile FS Intelligence Survey, our
quarterly survey of approximately 1,200 consumers to understand qualitative
sentiment on a variety of topics related to the mobile channel.
1 Compete Financial Services Mobile Banking

3. Mobile Banking
Where Mobile Adoption in Banking Stands Today
In Q2 2011, 54% of bank account owners (checking and/or savings) were using a
mobile device (Smartphone or tablet) to manage their accounts or conduct banking
transactions. 38% of bank account owners used their phone or tablet to view their
account balance, making this service the most popular mobile banking service. The
next highest level of adoption was using a mobile device to transfer funds between
accounts or finding an ATM/banking center, which 25% of bank account owners
reported doing. Remote check cashing had the lowest adoption rate at 11%.
The high use of checking balances and making transfers suggests that consumers
are both consulting and managing their balances before making purchases as the
phone increasingly becomes part of the in-store shopping process. The services
least connected to the shopping process – making deposits and scheduling bill
payments – will likely have the slowest adoption rates since they lack the “urgency”
associated with in-store purchasing.
Current Use of Mobile Banking Services
(Bank Account Owners, Q2 2011)
Consumers are Consulting Bank
Balances and Transferring on the Go
Services most directly
connected to shopping process
have highest adoption levels
View Account Transfer Find Make Schedule Check
Balance Money ATM/Bank Bill Payment Bill Payment Deposit
38% 25% 25% 22% 16% 11%
2 Compete Financial Services Mobile Banking

4. Current Awareness of Mobile Banking Services
Of key mobile banking services available on mobile devices, financial service
consumers are most familiar with basic transactions such as viewing account
balance, which has an awareness rate of 66%. Transferring funds between
accounts, using a phone to find an ATM, and making or scheduling a bill payment
have similar awareness rates, hovering around two-thirds. However, a large share
of banking consumers remain unaware of other services, like mobile check deposit.
One out of five consumers has never heard of remote check deposit and another
36% have heard of it, but know very little about it.
Current Likelihood of Adoption of Mobile Banking Services
The vast majority of banking consumers say they aren’t likely to start banking with
their mobile device in the next three months. In fact, two-thirds of checking and
savings account owners who aren’t currently using mobile banking say they aren’t
planning to start anytime soon. Just 7% of banking consumers indicated that they
would be very or extremely likely to start using their phone or tablet to make a bill
payment. And just 5% of banking consumers said they would be likely to start using
their mobile device to make a deposit. A lot has been made of the early growth in
mobile banking. Online banking paved the way for mobile banking, contributing
to early, high levels of adoption by consumers who were already banking online.
However, adoption rates will likely taper off as mobile banking tries to entice
consumers who aren’t online bankers.
Aware of Mobile Banking Services (blue)
Likely to Use Mobile Banking in Next 3 Months (green)
(Deposit Account Owners, Q2 2011)
Consumers are Familiar With the Basics
14% 7% 7% 6%
9%
Consumers are familiar with basic
5%
mobile services like checking
balances, but less familiar with other
services like remote check cashing
View Account Transfer Find Make Schedule Check
Balance Money ATM/Bank Bill Payment Bill Payment Deposit
66% 61% 62% 60% 55% 44%
3 Compete Financial Services Mobile Banking

5. Why Aren’t Consumers Going to Start Banking on Their Mobile Device?
Key barriers to mobile service adoption in financial services in aggregate include
concern about security as well as a general feeling that there just isn’t a need to
manage money on the go. However, when product owners are asked to share their
reasons for not adopting mobile banking specifically (as opposed to mobile credit
cards, auto insurance, investing) including viewing account balances and scheduling
bill payments, the most common reason for not adopting bank account mobile
services was slow wireless connection (52%). This reason outstripped lack of need
and security concerns.
Reasons for Not Using Mobile Banking
(Bank Account Owners, Q2 2011)
Top Reason for Not Adopting Mobile
Banking: Slow Wireless Connection
What consumers say about mobile
money in general is not consistent
across sub-industries
Wireless I don’t need I don’t trust the I am concerned I use my I don’t have a
connection to do this security of my there will be fees laptop/desktop data plan that
on my mobile mobile device to access will allow me
device is too slow my accounts to do this
52% 48% 40% 18% 8% 6%
Mobile Banking Doesn’t Compete with Online Banking; it Complements it
Only 8% of bank account owners indicated use of laptop/desktop as reason for not adopting mobile
services, suggesting that mobile services complement rather than cannibalize online services.
4 Compete Financial Services Mobile Banking

6. Current Use of Apps
Checking and savings account owners download the most apps and use them
often. 36% of bank account owners have downloaded at least one bank account
mobile app; 7% have downloaded two or more apps for their bank account. 29%
of brokerage account owners have downloaded at least one deposit app on their
mobile device and 10% have downloaded two or more. Behind brokerage, 26%
of credit card consumers have downloaded at least one app. Just 13% of auto
insurance consumers have downloaded an auto insurance app.
Number of Applications Downloaded
(FS Account Owners, Q2 2011)
Mobile Banking Apps
Downloaded Most Often
36% of bank account owners have
downloaded one or more mobile apps.
72% of bank account owners who
downloaded an app, use it weekly or
more frequently, with 31% of these 16% 5% 5% 19% 9% 2% 28% 5% 3%
consumers using the banking app daily Mobile
Mobile Mobile
Credit Card Investing Banking
1 2 3 or more
Mobile Apps Have Highest Impact on Consideration, Choice, and
Recommendations within the Banking Industry
Mobile apps have a higher impact in the banking industry than in other industries. App adoption is
also higher in banking than in other industries, suggesting that as app availability and adoption grow
so will impact on consideration, choice, and recommendation of financial service companies.
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7. Mobile Banking
Key Findings:
• Banking industry has the highest rate of mobile service adoption in financial
industries, much higher than credit cards, brokerage, and auto insurance.
• Awareness of mobile banking services is high, but likelihood to adopt
in next 3 months is low.
• Top reasons for not using mobile banking are slow wireless connection
and lack of need, followed by security concerns.
• Online banking paved the way for mobile banking contributing to early, high
levels of adoption. Adoption rates will likely taper as mobile banking tries to
entice consumers who aren’t current online bankers.
• The services most connected to the in-store shopping process – consulting
balances and transferring funds – have the highest adoption levels. Services
least connected to shopping – making a mobile check deposit and scheduling
bill payments – have the lowest level of use.
• Mobile banking does not cannibalize online banking; It complements it.
6 Compete Financial Services Mobile Banking

8. The Last Word…
Implications and Recommendations for Mobile Banking Marketers
• Link mobile banking services to the shopping process whenever possible.
Services most directly connected to shopping have the highest adoption
rates, so using these touch points as a launch pad to drive awareness of
other services will fuel adoption, too.
• Continue to drive online banking awareness and adoption, since it is
complementary channel. Integrate mobile and online services in a two-screen
approach delivering a seamless consumer experience.
• Bridge the gap between awareness and adoption. Feature and promote mobile
banking services more prominently on Web properties and rollout video, ads,
and other online content to boost awareness levels for key services.
• Drive adoption by creating relevance and urgency with mobile offerings. Provide
enough incentive to get consumers to try out services. This can be done by
creating unique offers or loyalty programs in the mobile channel. Use existing
offline and online channels to promote benefits of cross-channel adoption.
• Use marketing messaging to address the number one barrier for mobile
banking adoption – slow wireless connection. To the extent possible, marketers
should develop content and partnerships to help consumers understand
causes and fixes for slow wireless. Emphasize security and the use case in
marketing messaging, as these are two of the top barriers to mobile banking
adoption.
• Link mobile ads to apps. Consumers are open to seeing relevant ads within
banking apps, which have a positive impact on consumer’s perception of FS
companies. Mobile ads have a higher clickthrough rate than desktop ads, but
they must be more noticeable.
7 Compete Financial Services Mobile Banking

9. About Compete
Founded in 2000, and part of WPP/Kantar since 2008, Compete is passionate
about understanding consumers to inspire great marketing. We draw our data
from the industry’s largest integrated online consumer behavior and survey panel,
comprised of over 2 million opt-in participants. Compete has extensive expertise in
the automotive, consumer goods, financial services, media, mobile, online, retail,
telecom and travel markets. Strategic partnerships with the WPP/Kantar family of
companies enable marketing optimization and a more holistic view of consumers.
About Kantar Media
Established in more than 50 countries, Kantar Media helps clients master the world’s
multimedia momentum through analysis of print, radio, TV, internet, cinema, mobile,
social media, and outdoor worldwide. Kantar Media offers a full range of media
insights and audience measurement services. Kantar Media expertise includes
audience measurement, advertising expenditure, media evaluation, single source
market research, online analytics and social media listening. Drawing upon the
deepest expertise in the industry, Kantar Media tracks more than 3 million brands
and delivers insight to more than 22,000 customers worldwide.
Learn More
For more information about Compete’s role in advancing the online marketing
effectiveness in financial services, please contact:
Jennifer Johnston Canfield Michael Perlman
Senior Associate, Managing Director,
Financial Services Practice Financial Services Practice
jcanfield@compete.com mperlman@compete.com
8 Compete Financial Services Mobile Banking