2012 CI Mobile Finance Survey Summary


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Corporate Insight's 2012 Mobile Finance Survey focuses on how firms view the opportunities presented by the growth of mobile technology and gauges future mobile trends within the financial services industry. This summary highlights key findings and takeaways from the survey results.

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2012 CI Mobile Finance Survey Summary

  1. 1. 2012 Mobile Finance Survey Summary 1
  2. 2. Executive SummaryFirms across the financial services industry are hard at work developing new mobile platforms and capabilities for theirclients. Since 2011, Corporate Insight has been an expert in the competitive landscape and key trends in mobile finance, firstwith our Money on the Move: Mobile Finance Review 2011 study and currently through ongoing Mobile Monitor coverage.In early 2011, we conducted a survey to inform our initial research into mobile financial services, soliciting responses fromour client contact database of executives across the industry. Our purpose was to understand how firms view theopportunities presented by the growth of mobile technology and to gauge future mobile trends within the financial servicesindustry. We conducted a similar survey in 2012 to see what may have changed and to update our expectations goingforward. This year, we received 124 responses representing more than 50 different firms across the financial services.Our survey posed 16 questions to respondents regarding their firm’s current offering, as well as the goals it seeks toaddress and the challenges it faces. We also delved into recent developments, current status and future outlook forrespondents’ firms and the financial industry as a whole. Where relevant, we provide the comparable figures from our 2011findings.In many ways, responses in 2012 were similar to what we found in 2011, although some interesting year-over-yearcomparisons emerged. Mobile remains a key part of firms’ customer experience strategies. Most respondents are happy withtheir firm’s mobile offering, but they cited many familiar names – and some new ones – as mobile finance leaders. Firmscontinue to dedicate time and money to improving their mobile services, focusing not only on supporting new devices butalso strengthening current platforms with new features. It’s worth noting, though, that the industry did not achieve all of itsplanned additions since our 2011 survey. Significant challenges remain, and most firms still struggle to measure return oninvestment (ROI), although some comments indicated that mobile does not need a clear ROI to justify their efforts. 2
  3. 3. Methodology This is our second annual survey of financial services executives as part of our ongoing research for Mobile Monitor We posed 16 questions focusing on firms’ mobile efforts  Does your firm offer a mobile formatted website or app to clients?  What do you consider to be the primary objectives of your firms mobile offering?  How would you describe the impact your mobile efforts have had on your companys business? Survey fielded Q2-3 2012 124 responses from 56 firms 3
  4. 4. Respondents are from a mix of retail financial firms What industry do you work in? Annuity/Insurance (Life) 7% Banking 26% Annuity/Insurance (Life) Insurance (P&C) Banking 7% Brokerage Credit Card Brokerage Mutual Fund/Asset 35% Mutual Fund/Asset Management Management 19% Insurance (P&C) Credit Card 6% 4
  5. 5. Respondents are familiar with, and involved in, theirfirms’ mobile efforts 89% of respondents know of their firms’ mobile initiatives 78% are directly involved in their company’s mobile efforts 36% lead all or a portion of their company’s mobile efforts Which of the following best describes your Are you familiar with your firms current or involvement with your companys mobile future mobile offering for customers? efforts? No, I am unaware of anything or am I am not not the right involved with person my companys 7% mobile efforts I am directly 22% Yes, I am involved with Yes, but we familiar with my companys are NOT our current mobile efforts planning offering and/or 42% initiatives I lead my future plans companys 4% 89% overall mobile efforts 11% I lead a portion of my companys mobile efforts 25% 5
  6. 6. 78% of respondents say their firm already offers theirclients a mobile platform Does your firm offer a mobile formatted website or app to clients? I dont know 3% No 20% Yes 77% 6
  7. 7. Even more think their firm should be mobile, though 90% think it’s “definitely” a good idea to provide their clients with a mobile experience – up from 70% in 2011 Do you think that your firm should provide a mobile experience to your customers? Definitely not 0% Probably not 0% Maybe 2% Definitely Probably 90% 8% 7
  8. 8. 98% say mobile is important to customer experience 85% “very” important, 13% “somewhat” important How important do you think mobile is to your firms customer experience strategy? Not at All Important 0% Not Very Important 3% Very Important 85% Somewhat Important 13% 8
  9. 9. In their own words… “Mobile is the wave of the future.” “Fast-growing client segment.” “Convenience is key! And mobile is convenient.” “It is an important differentiator.” “Being able to monitor accounts and place trades from anywhere at anytime is important“All our competitors do. Customers expect it.” to a significant portion of our clients.” “We want to be the vanguard – we dont want to be straggling behind with the dinosaurs.” “Its a requirement today!” “Its mandatory and expected today.” “The rest of the industry is playing in the mobile arena.” “Clients are more connected via mobile devices and expect their banks to provide the information and services they need no matter “Absolutely required in this day and age.” where they are, or what time.” “Alternative way to connect with customers.” “People are only spending more and more time on mobile.” “Customers are actively requesting it, and competitors are providing it.” “Important for younger members and those without access to PCs.” “Active traders want to trade anywhere but many clients, 9 even those who are long-term investors, want to monitor accounts easily.”
  10. 10. Key objectives for mobile are unchanged since 2011 Increasing customer satisfaction remains most important “Customer retention,” “brand image” and “keep up with the competition” are cited as important reasons again in 2012 “Acquire new customers,” “lower servicing costs” and “move clients away from the phone or online channels” are noticeably less important goals What do you think are the primary objectives for your firms mobile offering? Increase customer satisfaction 4.61 Increase customer retention 4.44 Improve our brand 4.26 Keep up with the competition 4.26 Acquire new customers 3.66 Lower servicing costs 3.04 Move clients away from the 2.52 phone or online channels 0 1 2 3 4 5 Not important Very important 10
  11. 11. Banks aim to lower costs most, though Banks rated “lower servicing costs” as a significantly more important objective than brokerages and other industry segments Other objectives (see previous slide) were similar across industry segments “Lower servicing costs” importance ratings 50% Brokerage Bank average: average: 25% 2.5 3.6 Banking Brokerage 0% 1 2 3 4 5 Not Important Very Important 11
  12. 12. Most respondents are happy with their firm’s mobile offering Just over half think they are above average or best in industry An additional 25% say they’re about average How would you rate the overall mobile experience your company CURRENTLY delivers to clients? The best in our industry 6% Considerably The worst in our above average in industry our industry 3% 44% Considerably below average in our industry 12% Average for our Slightly below industry average in our 25% industry 10% 12
  13. 13. Most respondents see no clear industry leaders at this time Within your industry, who do you feel offers the best mobile experience to customers? The firm I work for 13% A leading company (see next slide) 28% None of the firms we compete There is no clear with have leader at this implemented a time mobile platform 55% 4% 13
  14. 14. However, other respondents singled out leaders Note: Larger font = more mentions 14
  15. 15. Top-rated firms remain the same as last year Some firms earn their first mention among leaders in our 2012 survey: 15
  16. 16. Respondents saw their firms improve in the last 12months, but was it enough to keep up? While most banks and brokerages met expectations, the majority of mutual fund/asset management firms lagged Relatively few respondents (17% overall) said their firm exceeded expectations, but 33% felt the industry as a whole was advancing faster than anticipated How would you rate your firms mobile development in the last 12 months? How would you rate the overall financial service industrys mobile development in100% the last 12 months? 33% 38% Slower than 59% expected Slower than expected Met your Met your 25% expectations expectations 42%50% Faster than 46% 56% expected Faster than 24% expected 33% 17% 18% 11% 0% Bank Brokerage Mutual Fund/Asset Management 16
  17. 17. Nearly every firm plans new mobile initiatives bymid-2013 Since most firms already offer mobile, over 80% of firms will be adding features to their existing platforms Sixty-eight percent also plan to launch new mobile sites or apps for new devices Over the next 12 months, how will your firm’s mobile offering change? 100% 75% 50% 82% 68% 25% 39% 3% 0% 0% Add new mobile Add new Improve back- Stay the same Get worse sites or apps for features to end functionality new devices existing platforms 17
  18. 18. Most widely-supported devices set to shift in 2012 Mobile sites and apps for the iPhone, Android and iPad should become nearly universal – with BlackBerry likely to fall behind Platforms most targeted for development include mobile sites (37%), Android tablets (35%), iPad (32%), Kindle Fire (28%) and Windows Mobile (26%) Projections from 2011 were overly optimistic, though – current numbers are not as high as predicted Does your firm support the following platform, or does it plan 100% to add in the next 12 months? 12% 18% Planning to add 75% 32% 37% Currently using 12% 50% 35% 79% 20% 71% 28% 59% 26% 58% 55% 25% 31% 26% 19% 18% 0% iPhone Android BlackBerry iPad Mobile SMS/text Android Amazon Windows phone optimized commands tablet Kindle Fire Mobile website 18
  19. 19. Significant challenges remain for mobile efforts “Other competing priorities,” “Too many platforms/devices,” “Budget” are all still highest on the list “Low adoption by customers” now ranks as the least challenging To what extent are each of these issues a challenge in your firms/departments mobile efforts? Other competing priorities 3.79 Budget 3.60 Too many platforms/devices to support 3.43 Confusion about how to develop strategy 2.97 Lack of important skills in the organization 2.81 Executive/Sr. Management support 2.38 Low adoption by customers 2.28 0 1 2 3 4 5 Very Challenging 19
  20. 20. But many already see a positive impact from their efforts Even if they aren’t “industry leaders,” 60% of firms have seen a somewhat to very positive impact on their company’s business, courtesy of mobile More than a quarter (26%) think it’s still too early to gauge the impact Very few (3%) think their mobile efforts have negatively impacted their company Figures are comparable to 2011 How would you describe the impact your mobile efforts has had on your companys business? Somewhat positive impact Minimal or no 22% impact 3% Very positive impact Somewhat 39% negative impact 3% Very negative impact Its too early to tell 0% 26% I dont know 7% 20
  21. 21. Impact varies by industry segment Brokerage execs were most pleased overall, with 78% seeing a “very” or “somewhat positive impact” More bank execs were “very positive” (52%), though – up from 29% in 2011 The mutual fund/asset management industry still awaits mobile’s impact, with 40% not sure yet How would you describe the impact your mobile efforts had on your companys business? 75% 50% 25% 52% 48% 40% 30% 26% 20% 13% 15% 4% 4% 13% 0% 7% 0% 0% 0% Very positive Somewhat Minimal impact Negative impact Too early to tell impact positive impact Brokerage Banking Mutual Fund/Asset Management 21
  22. 22. ROI metrics are still elusive Only 16% say they currently measure the success of their mobile efforts For some respondents, mobile doesn’t need a clear ROI Does your company measure the return on investment (ROI) of your mobile efforts? “Its a service to clients; hard to monetize and thus measure ROI.” “Did not do it for ROI.” I dont know 23% We do not currently measure ROI of our mobile “Motivation was not ROI-driven, but rather We are actively efforts a play to remain competitive and improve measuring ROI 31% 16% retention & satisfaction.” We are currently “We don’t look at mobile as a building metrics to measure separate investment from the rest of mobile ROI the bank infrastructure.” 30% 22
  23. 23. About Corporate Insight No one understands the intersection of technology and financial services like Corporate Insight. For two decades, we have tracked new developments in the retail financial services industry through our syndicated Monitor research and consulting services. We pride ourselves on identifying best practices in online banking and investing, online insurance, mobile finance, active trading platforms, social media and other emerging areas. In the process, we have helped clients across the entire spectrum of the financial services industry stay on top of industry trends and improve their competitive position. Why Choose Corporate Insight? Expertise – For 20 years, Corporate Insight has focused exclusively on tracking and evaluating the online and offline user experience offered by financial service firms to prospects, clients and advisors. Our expertise in this area is unmatched. We become the customer – Rather than rely on third-party data as a basis for our research, we hold live accounts at all major financial firms. This provides us with unparalleled knowledge of the true customer experience and gives our research an unmatched level of detail. Objective and granular approach – All of our services go into a very granular level of detail with the objectivity that only an experienced third-party can provide. Clients use our research because they want to eliminate assumptions and gain a better understanding of industry trends and best practices. Company-wide value – Our deliverables have great value not only for the more obvious functional areas—C-level management, market research, product management and development, customer experience, e-commerce, strategic planning—but also for areas such as pricing, information technology, operations, distribution, marketing and compliance. Accessibility – We impose no distribution restrictions or seat licenses on our clients. All of our products and services are available on a company-wide basis to all employees for a single fee. Furthermore, our executives and experienced industry analysts are always available to clients at no additional charge. For more information, please visit www.corporateinsight.com.. 23
  24. 24. About Mobile MonitorMobile Monitor continuously tracks the mobile resources offered by leading banks,brokerages, credit card issuers and asset management firms including mobile optimizedsites and apps on all leading mobile platforms.Your Mobile Monitor research service subscription includes:  Coverage of 20+ leading banks, brokerages, card issuers and asset management firms.  Bi-weekly updates reviewing new mobile releases, app updates and other changes.  Quarterly reports with in-depth analyses of key topics, including: • Mobile Leaders • iPad & Tablet Apps • Mobile Trading & Transaction Capabilities  Behind-the-login videos offering a full first-hand look at competitor mobile capabilities.  Detailed matrices breaking down the key mobile features offered by competitors.For more information on Mobile Monitor, please click here. 24
  25. 25. Connect with Corporate Insight Contact Us Daniel J. Wiegand Ben Pousty Senior Analyst, Consulting & Mobile Research Marketing Manager (212) 832-2002 x118 (212) 832-2002 x134 dwiegand@corporateinsight.com bpousty@corporateinsight.com Connect with Us Corporate Insight Blog Follow us @CInsight 25