News

Study finds mobile and tablet banking key to customer retention

May 21, 2014

Banking via mobile device is fast becoming a preferred way for consumers to conduct their banking activities and manage financial information on the go. New research by Mercator Advisory Group reveals that nearly half of consumers perform banking activities on a mobile phone or tablet today, up from around one-third in 2012.

“Mobile and Tablet Banking: Key to Customer Retention,” a new Insight Report from Mercator Advisory Group primary data service highlights rising mobile and tablet use.

The study also analyzes the demographics of mobile users and those engaged in mobile banking; consumer confidence in the security and reliability of mobile phones for banking; methods, preference and frequency of communication with financial institutions; banking activities performed by smartphone, tablet or computer; and the impact of mobile banking on branch use. 

The study also reveals changes in the consumer-FI relationship within the mobile context:

• as they go mobile, account holders are reevaluating their FIs. Nearly one-quarter of mobile banking users surveyed said they had switched their primary FI within the past two years;
• consumers who own both smartphones and tablets are more likely than average to have opened new accounts within the previous 12 months; and
• mobile banking users not only prefer mobile banking methods, but also are more likely to use a wider variety of traditional and self-service channels, besides.

“Mobile and tablet banking use is rising rapidly and becoming a preferred banking method as consumers take advantage of multiple channels for their banking activities,” said Karen Augustine, manager of primary data services — including the CustomerMonitor survey series — at Mercator Advisory Group and author of the report. “Mobile banking users are most likely to reevaluate their financial institutions and open new accounts. Financial institutions need to continue to improve the usability and functionality for mobile and tablet banking or consumers will take their business elsewhere.“

Survey findings are based on responses from a sample of 3,001 U.S. adults with banking relationships collected in the annual online Banking and Channels survey, conducted in November 2013. 

One of 30 exhibits in the 66-page report: