State of Mobile Financial Services_Executive Summary 102711

8/3/2019 State of Mobile Financial Services_Executive Summary 102711

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State of Mobile Financial Services in the U.S.

October 27, 2011


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2 comScore, Inc. Proprietary and Confidential.

So why focus on mobile within the financial industry?

Mobile is becoming an increasingly important servicing channel toconsumers

Mobile may be a way to engage and incentivize consumers to increase theircredit card spend

As consumers begin to feel more comfortable completing more complexactions from their mobile device the channel may be an effective tool inacquiring new customers

With the introduction of NFC equipped devices mobile may now serve asthe consumers wallet


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More than one in ten mobile device owners in the U.S. accessedfinancial related information from their phone in Q2 2011

Total U.S. Mobile Universe: 234 MM

4%

3%

8%

14%

16%

0% 10% 20%

Mobile Financial User: 36.7 MM(accessed either banking, creditcard, insurance or brokerage informationfrom a mobile device in the past month*)

Mobile Banking User: 32.5 MM(accessed banking information from a mobiledevice in the past month*)

Mobile Credit Card User: 18.4 MM(accessed credit card information from a mobiledevice in the past month*)

Mobile Insurance User: 7.2 MM(accessed auto or property insurance informationfrom a mobile device*)

Mobile Brokerage User: 9.6 MM(accessed brokerage/stock information from amobile device*)

Source: MobiLens : 3-mth rolling average ending June 2011*Data also includes those who used text messaging to engage with financial institutions and as well as those who received text alerts.

% of Total U.S. Mobile Universe


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Growth in Mobile Usage within Financial Services


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28.8 30.3

33.6

36.7

25.0 26.8

29.832.5

14.6 14.916.2

18.4

5.9 6.0 6.27.2

8.7 8.7 8.99.6

0

10

20

30

40

Sept - 10 Dec - 10 Mar - 11 Jun - 11

Mobile Financial Users Mobile Banking Users

Mobile Credit Card Users Mobile Insurance Users

Mobile Brokerage Users

Mobile usage for financial services continues to grow significantlyacross four key sectors

Growth in Mobile Usage within the Financial Industry(Millions)

Source: MobiLens : 3-mth rolling averagesNote: Data includes both customers and prospects who have utilized a browser, app or SMS in the prior month.

Q/QChange

+9%

+9%

+14%

+8%

+16%

Credit Card

Banking

Brokerage

Insurance


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7.3

8.7

11.4

12.7

3.84.2

5.16.0

1.4 1.6 1.7 2.1

2.7 3.2

3.13.4

0

5

10

15

Sept - 10 Dec - 10 Mar - 11 Jun - 11

Mobile Banking Users Mobile Credit Card Users

Mobile Insurance Users Mobile Brokerage Users

Overall growth in mobile for both card and insurance is being drivenlargely by an increase in app usage

Growth in App Usage Among Mobile Financial Users(Millions)

Source: MobiLens : 3-mth rolling averagesNote: Data includes both customers and prospects who have utilized an app in the prior month.

Q/QChange

+11%

+18%

+10%

+24%


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What has influenced this significant growth in mobile withinfinancial services?

Continued adoption of the Smartphone

Growth in overall mobile media consumption

Importance placed on mobile channel availability by financial customers

Influx of mobile optimized sites, Smartphone and tablet app offerings byfinancial institutions over the past 12 months


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Smartphone ownership continues to increase, driven largely by Googleand Apple OS, with respective market share up 169% and 9% Y/Y

U.S. Smartphone Penetration Trend

by Platform

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Google Apple RIM Microsoft Symbian Palm

MarketShare

% YoYGrowth

Google 40% 169%

Apple 27% 9%

RIM 23% -42%

Microsoft 6% -54%

Symbian 2% -37%

Palm 2% -59%

Source: MobiLens

Q2 2011


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18.2

20.5

24.9

27.6

10.6 9.7 8.8 9.1

Sept - 2010 Dec - 2010 Mar - 2011 Jun - 2011

Smartphones Non Smartphones

The growth in mobile financial users over the past several quarters ishighly correlated to Smartphone ownership

Mobile Financial Users by Device(in Millions)

Source: MobiLens : 3-mth rolling averagesNote: Data includes both customers and prospects who have utilized a browser, app or SMS in the prior month.


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Not surprisingly, the importance of mobile as a servicing channel israted higher among Smartphone users vs. those with a feature phone

Feature Phone Owners Smartphone Owners

15%

14%

15%

63%

9%

8%

10%

48%

11%

9%

12%

51%

14%

12%

15%

65%

0% 20% 40% 60% 80% 100%

Access to textmessage alerts

Account access

via mobile app

Account accessvia mobile browser

Account access

via PC / laptop

Bank AccountCredit Card Account

Insurance Policy

Brokerage Account

26%

31%

30%

63%

24%

26%

26%

55%

27%

31%

32%

61%

29%

35%

38%

68%

0% 20% 40% 60% 80% 100%


Account access

via mobile app


Account access

via PC / laptop

Source: Financial Services MobiLens Re-Contact Survey (Apr Jun 2011)

Importance of Servicing Channels to Financial Services Customers(% Indicating Channel is Highly Important)


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Usage of Mobile for Financial Account Servicing


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Financial customers with a Smartphone are younger, more affluentand more often male than those with a feature phone

78%

22%

54% 46%

Less than $75K $75K+

HH Income of $75K+

Feature Phone Smartphone

24%17% 21% 19% 18%

51%

20%16%

7% 5%

18-34 35-44 45-54 55-64 65+

Age Distribution

Feature Phone Smartphone

Profile of Financial Customers with a Feature vs. Smartphone

44%56%58%

42%

Male Female

Gender

Feature Phone Smartphone 11%

12%

14%63%

Intent to Purchase Smartphone(among feature phone users)

Purchase less than 3 mths

Purchase in 3-6 mths

Purchase more than 6 mths

Do not plan to purchase



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While Smartphone owners are gravitating towards mobile as aservicing channel it is not necessarily replacing the PC

Feature Phone Owners Smartphone Owners

2%

0%

5%

53%

2%

0%

2%

35%

2%

0%

4%

58%

2%

0%

4%

64%

0% 20% 40% 60% 80% 100%

Clicked on link in textmessage

Accessed account from

a mobile app

Accesed acount from amobile browser

Accessed account from

PC/laptop

Bank AccountCredit Card Account

Insurance Policy

Brokerage Account

7%

11%

21%

55%

6%

6%

10%

46%

6%

13%

18%

61%

8%

19%

25%

72%

0% 20% 40% 60% 80% 100%

Clicked on link in textmessage

Accessed account

from a mobile app

Accesed acount from amobile browser

Accessed account

from PC/laptop


Usage of PC / Mobile Servicing Channels Among Customers(Past 12 Months)


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19% 17% 18% 22%

56%52%

41%42%

21%

19% 31% 15%

3%9% 7%

6%

Accessedaccount from

PC/laptop

Accesedacount from a

mobile browser

Accessedaccount from a

mobile app

Clicked on linkin text

message

Every Day At Least Once Per Week At Least Once Per Month

At Least Every 3 Months Every 4-6 Months Every 7-12 Months

6%15% 12%

26%28%

37%50%

46%

52%26%

26% 13%

9%16%

10% 13%3% 6% 0%

Accessedaccount from

PC/laptop

Accesedacount from a

mobile browser

Accessedaccount from a

mobile app

Clicked on linkin text

message

Financial customers who are utilizing mobile for their servicing needsare accessing their accounts frequently from their device

Frequency of Channel Usage


Bank Account Credit Card Account


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What are some of the obstacles that may be hindering mobileadoption relative to financial servicing?

No more than three in five Smartphone users with a financial account areaware of even the basic mobile servicing features offered

Satisfaction ratings for the mobile channel are typically lower than for thePC/laptop, particularly with respect to browser usage

Security continues to remain a concern in the mind of the consumer

While mobile device screens continue to get larger, some more complexactivities may not be as easy to perform on a Smartphone even with an app


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Awareness of mobile banking features is 2X greater thanutilization, except for checking my balance


6%

5%

15%

16%

16%

16%

23%

32%

27%

29%

43%

43%

45%

45%

48%

57%

Editing bank acct preferences

Depositing checks remotely

Transferring money

Paying bills

Finding nearest bank /ATM

Receiving bank alerts

Viewing transactions

Checking my balance

% Aware of MobileBanking Features

% Utilizing MobileBanking Features

Awareness and Utilization of Mobile Banking Offerings(Among Smartphone Owners)


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79%

70%66% 60%

79%

62% 69% 61%

70%

54% 52% 52%

74%

55%61%

52%

Account accessvia PC / laptop


Account accessvia mobile app


Bank Account Credit Card Account

Insurance Policy Brokerage Account

Satisfaction with mobile as a servicing channel is significantly lowerthan a PC or laptop experience

Satisfaction by Channel PC vs. Mobile

(% Highly Satisfied with Channel Experience)



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6%

8%

9%

8%

7%

27%

24%

49%

4%

6%

7%

6%

6%

33%

27%

40%

6%

5%

10%

9%

12%

24%

19%

47%

7%

11%

13%

16%

19%

14%

37%

48%

Do not want to pay for app

Takes to long to access site from my phone

Too hard to read information from phone

Not comfortable using banking app - security

Not comfortable using browser - security

Prefer to call my bank directly

I prefer to visit a local branch/office/ATM

I prefer to access accounts from PC/laptop

Banking

Credit Card

Insurance

Brokerage

Security is one of the leading reasons as to why Smartphone usersare not accessing financial accounts from their mobile device

Leading Reasons for Not Using Mobile for Financial Servicing(Smartphone Owners who Have Not Used Mobile Browser or App for Financial Servicing)



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Marketing to the Mobile Consumer


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A little more than one in ten mobile owners recalls seeing some typeof mobile ad directly from their device

Source: MobiLens 3-Month Average Ending June 2011

14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

% Who Recall Advertisement fromMobile Phone in the Previous Month

31%

28%

41%

Every day

Once a week

Several timesper month

Frequency of Ad Exposurevia Mobile Phone

(% Exposed)

Total Mobile Universe

Q/Q:+2%


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10%

26%

0% 10% 20% 30% 40%

I have searched for

information aboutfinancial servicesthrough a searchengine from mymobile device

I have searched forinformation about

products andservices through asearch engine frommy mobile device

One in ten mobile users has actively sought financial relatedinformation directly from their device

Exposure to Display Ads via Mobile(Among Financial Services Customers)

Search Activity via Mobile(Among Financial Services Customers)

4%

9%

0% 10% 20% 30%

I have seen anadvertisement(s) for

financial services directlyon my mobile device

I have seen anadvertisement(s) for aproduct or service

directly on my mobiledevice


Mobile Search and Display Activity


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Adoption of New Mobile Devices and Technology

NFC Technology & Tablets


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12%

13%

13%

14%

15%

15%

15%

To pay family / friends (i.e. P2P)

Verify your identity

Replace tickets for transportation

Replace paper tickets for air travel

Replace credit/debit/cash at retailers

Replace paper tickets for concerts

Replace paper tickets for movies

Likely to Do in the Future

39%

61%

% Aware of NFC

% Unaware of NFC

Despite the recent rollout NFC has gained very little traction in termsof consumer awareness since last quarter

Awareness of Near Field

Communication Technology(Among Current Financial Services Customers)


Future Intent Towards Use of

Mobile Waving/Tapping

Q/Q:P. Pt.+1%


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22%

17%

31%

48%

Used Apple iPadto AccessFinancialServices

Banking Credit Card

Insurance Brokerage

One in ten financial customers with a mobile device also owns an iPadof which half indicate accessing their back accounts from their tablet

Mobile Tablet Ownership(Among Current Financial Services Customers)

Accessing Financial Accounts via iPad(Among Apple iPad FS Customers)

2%

3%

3%

5%

5%

10%

10%

Other

Motorola Xoom

Nook

Samsung Galaxy Tab

Blackberry Playbook

Kindle

Apple iPad

Source: Financial Services MobiLens Re-Contact Survey (Jan Mar 2011)

Tablet Ownership and Usage within Financial Services


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In Summary

Increasing adoption of the Smartphone has allowed for greater mobilemedia consumption

As a result of importance placed on the mobile channel by customers thefinancial services industry has responded by rolling out mobile optimizedsites and apps over the past year

Generating incremental awareness of mobile servicing options and apps, inparticular, should serve not only to increase usage but make for a moresatisfactory consumer experience

Security continues to remain a leading concern for financial servicescustomers, most notably in the banking sector

As we see more and more consumers purchase tablets, we would expect tosee movement towards these device for more complex actitivities ortransactions (i.e. stock trading, opening accounts, etc.)


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Questions?

Please contact:

Stephanie Houck

[email protected]

312-775-6498
mailto:[email protected]

Documents

State of Mobile Financial Services_Executive Summary 102711