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The 2013 ath Power Mobile Banking Study

Thu, Jun 27, 2013

Columbia, Maryland

Annual Meeting and Convention break-out speaker, Frank Aloi, President of ath Power Consulting, spoke about the topic of “Understanding the Ideal State of Banking and the Opportunity for the Credit Union Market.”  One area that has been of great interest for credit unions has been mobile banking.  Frank agreed to forward a press release on the matter from a recent survey that ath Power conducted.

ath Power Consulting, a leading financial services research and strategy firm, today published The 2013 ath Power Mobile Banking Study™ following the recent presentation of initial findings at CBA Live and SourceMedia's Mobile Banking Summit. Results revealed that Remote Deposit Capture continues to be the most sought-after mobile banking feature, and next generation capabilities such as Voice Authentication and Mobile Photo Bill Pay would encourage more customers to adopt mobile banking.

"Retail customers are becoming less resistant to monthly fees for mobile, with 1 in 3 now saying they would be willing to pay for mobile banking, up from 1 in 5 in last year's study," said Michael McEvoy, Managing Director, ath Power.  "With more banking capabilities available to users and its obvious convenience, mobile is quickly becoming the preferred channel for many, with 1 in 2 customers logging into their accounts at least twice weekly. This is a clear opportunity for banks to build customer loyalty and potentially drive revenue."

The ath Power study found that 'voice recognition' would motivate 1 in 3 mobile customers to use mobile banking services more, while 'voice authentication' would encourage non-users to adopt mobile banking in the first place. 

USAA, who has rolled out innovative features including a voice-based virtual agent and whose app downloads have exceeded 5 million, received the highest rating for customer satisfaction in both this and last year's study.

Other Key Findings:

  • Banks are particularly at risk of losing small business customers if their mobile offering is inadequate.  2 out of 3 small business owners (66%) say they are likely to consider leaving their current bank for one with a superior mobile offering, compared to 44% of retail customers.
  • Almost one-half of existing mobile banking customers are discouraged from using mobile services such as bill payment and funds transfers over security fears.
  • Alerts are a relatively untapped means of interacting in real-time with customers.  Currently 2 in 5 mobile users do not receive any alerts at all from their financial institution.

About The Study

Through a combination of survey research and hands-on usage audits of mobile banking apps, The ath Power Mobile Banking Study™ was conducted to determine what factors make up an "ideal mobile banking experience" as well as to understand how banking institutions can increase overall usage and adoption of their mobile offerings.