Compete Financial Services: Mobile Money


Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Compete Financial Services: Mobile Money

  1. 1. Compete Financial ServicesMobile Money
  2. 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 money 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 on financial service sub-industries: Mobile Banking, 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 Money
  3. 3. Mobile Money Where Mobile Adoption in Financial Services Stands Today In Q2 2011, 36% of financial service account owners (bank, credit card, brokerage, or auto insurance) were using a mobile device (Smartphone or tablet) to manage their accounts or conduct financial transactions. Mobile money adoption is most prevalent in banking (checking and/or savings) and least prevalent in auto insurance. 54% of bank account owners used their phone or tablet to manage their checking or savings account and make transactions. The next highest adoption rate in financial services is among credit card owners with 36% of card owners using their mobile device to manage their account or make transactions. In brokerage, 28% of account owners use investment mobile services and just 17% of auto insurance consumers manage their policy with their mobile device. Looking at the mobile clickstream data, we see this same pattern across sub-industries. In June 2011, Bank of America and Chase both saw 1.8 million unique visitors access their websites making them the highest-trafficked financial services sites on mobile devices. Capital One and Wells Fargo both saw 1.5 million unique visitors access their sites in June. After these four companies, mobile use drops significantly among other financial service firms with the next highest visited site, HSBC, seeing only 500 thousand unique visitors in June. Current Use of Mobile Services by Sub-industry (FS Account Owners, Q2 2011) Mobile Service Adoption Overall use of is Highest in Banking Mobile Money Services Adoption rates across financial 36% services vary significantly with banking and credit cards – the two most connected to the in-store shopping process – leading the way Mobile Mobile Mobile Mobile Banking Credit Card Investing Auto Insurance 54% 36% 28% 17%2 Compete Financial Services Mobile Money
  4. 4. Current Awareness of Mobile Money Services Of key financial services available on mobile devices, financial service consumers are most familiar with mobile bill pay with 2 out of 3 of all consumers reporting they are familiar with or currently using the service. 55% of consumers are familiar with or currently using mobile couponing (e.g., redeem coupons, via mobile device), which had the second highest awareness rate among financial product owners. Consumers are much less aware of other mobile services like mobile tickets, which less than half (45%) of consumers were aware of. The least familiar service is mobile tap and pay (e.g., pay for goods in retail store with mobile device instead of credit or debit card) with 2 out of 3 consumers indicating that they “had never heard of” or “know little about” the service. With the introduction of Google Wallet in May 2011 and Google’s subsequent purchase of Motorola in August, we expect that awareness of this service will increase in the next quarter. Familiar with Mobile Services (blue) Likely to Use in Next 3 Months (green) (FS Account Owners, Q2 2011) Product Owners are Hesitant About the Mobile Wallet, But for Different Reasons 11% 19% 14% Examine adoption barriers 12% in sub-industries individually rather than in aggregate because reasons for not adopting vary by context Bill Pay Couponing Ticketing Tap & Pay 68% 55% 45% 38% Current Likelihood of Adoption of Mobile Money Services Well over half of bank account owners said they are not likely to use banking-specific mobile services in the next three months. An even larger share of credit card and brokerage owners (over two-thirds) say they are not likely to use credit card or investment-specific mobile services in the next three months. When looking at specific sub-industries, there are noticeably different barriers for mobile service adoption. For example, when asked about general bank account management services, 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 surpassed lack of need and security concerns, which are the top barriers to adoption generally reported.3 Compete Financial Services Mobile Money
  5. 5. Frequency of Use of Mobile Money Services Although current use of and intended adoption rates for mobile services are low, once consumers adopt mobile financial or money services and start using their phone as a mobile wallet, they use the services frequently. 16% of consumers using mobile tap and pay do so daily, and another 36% use it weekly. A full 87% of consumers who use mobile couponing do so at least once a month. Frequency of Use of Mobile Tap & Pay and Couponing (FS Account Owners, Q2 2011) Mobile Wallet is Sticky A full 87% of consumers using mobile couponing do so at least once a month Daily Weekly Monthly Daily Weekly Monthly 16% 51% 71% 5% 45% 87% Tap & Pay Couponing Smartphone Owners Have a Strong Preference for Apps 70% of Smartphone owners who use mobile tap and pay do so with an app, like the Starbucks card mobile app. Similarly, 62% of Smartphone owners who make money transfers do so with an app. Over half of all mobile wallet transactions surveyed were conducted with an app as opposed to a Web browser or SMS. 38% of consumers are using a browser to pay bills with mobile devices, and 25% of consumers used SMS to receive mobile coupons.4 Compete Financial Services Mobile Money
  6. 6. Ads Go Unnoticed on Mobile Devices, yet When They are Noticed, Clickthrough is High 77% of FS consumers don’t recall seeing an ad for a financial services company on their mobile device. Thus, a first concern for FS marketers is simply getting noticed. 19% of consumers who saw an ad on their mobile device clicked on it. The top reason for clicking on the ad was to learn more about the advertised financial product. Reasons for not clicking on an ad after noticing it included not paying attention to ads in general (46%) and not seeing ads of interest (44%). While a larger share of tablet owners notices ads (44% vs. 21%), the click rates for both tablet and Smartphone owners are similarly reported at 18% and 21% – good news, demonstrating that mobile ad performance is significantly higher than desktop performance. Have You Ever Seen an Ad for a Financial Service Company on Your Mobile Device? no (FS Account Owners, Q2 2011) % 77 Mobile Ads Have High Clickthrough Rate yes Have You Clicked on a Financial 1 in 5 consumers clicked on FS ad to 23% Services Ad in the Past 3 Months? (FS Account Owners, Q2 2011) learn more about a financial product yes no 19% 81% Ads Seen While Using a Financial App Have Most Positive Impact on Consumer’s Perception of the Company Consumers rarely see ads while using financial apps; however, ads seen while using a financial app have most positive impact on consumer’s perception of the company. 48% of consumers indicated that seeing an ad while using a financial application had a favorable impact on their perception of the company versus 33% of consumers who indicated that seeing an ad while browsing the Internet had a favorable impact on their perception of the company. Ads paired with mobile apps should be viewed as an opportunity for financial service marketers.5 Compete Financial Services Mobile Money
  7. 7. Mobile Money 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 services is high, but likelihood to adopt in next 3 months is low. • Mobile wallet services are sticky – once consumers adopt services and technologies they use them frequently. • Clickthrough rate on mobile financial service ads at 19% is much higher than desktop performance. The Last Word… Implications and Recommendations for FS Mobile Marketers • FS mobile marketers need tailored messaging for sub-industry product owners due to their different attitudes and behaviors. For example, banking marketers must focus messaging on security, while credit card marketers need a greater emphasis on a use case. • Bridge the gap between awareness and adoption. Feature and promote mobile money services more prominently on Web properties and rollout video, ads, and other online content to boost awareness levels for key mobile services. • Drive adoption by creating relevance and urgency with mobile offerings. This can be done by linking unique offers to in the mobile channel and providing enough incentive to get consumers to try out services. Use existing offline and online channels to promote benefits of cross-channel adoption. • Address the number one barrier for mobile adoption – slow wireless connection. To the extent possible, marketers should develop content and partnerships to help consumers understand causes and fixes for slow wireless. • Link ads to apps. Consumers are open to seeing relevant ads within financial services 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.6 Compete Financial Services Mobile Money
  8. 8. 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 mperlman@compete.com7 Compete Financial Services Mobile Money