Consumer Attitudes Towards Mobile Banking Services

The (re)Birth of Mobile Banking A look at consumer attitudes and opinions around mobile banking Ryan Burke – Director, Telecommunications and Media Paul Zeckser – Director, Financial Services

What we will talk about today ,[object Object],[object Object],[object Object]

The (re) Birth of mobile banking ,[object Object],Greg Wolfond, Chief Executive Officer, 724 Solutions August 29, 2000 "We're taking convenience and control to a new level by providing customers with the ability to stay connected with their finances even when they're on the go, if you have a cell phone, you have the opportunity to take advantage of the latest innovation from the country's leading online bank." Sanjay Gupta, e-Commerce executive for Bank of America, February 13, 2007

Wireless subscribers and online bankers have grown since 2001 ,[object Object],Number of Online Bankers and Wireless Subscribers in the United States in 2001 and 2007 MILLIONS

Landscape of mobile banking in 2007 Citi mobile banking powered by mFoundry COST CARRIER Cingular BANKS Citi Wachovia Regions Financial SunTrust BancorpSouth ROLL-OUT Southern CA now, nationwide this summer Cingular’s mobile banking powered by Firethorn Data fees only Bancorp South customers now, other banks later this year Bank of America mobile banking Agnostic Bank of America Tennessee now, nationwide this summer Data fees only Data fees only Sprint Citi and others Sprint mobile banking powered by mFoundry Announced April 27, 2007 Data fees only VZW N/A Verizon Wireless mobile banking powered by Firethorn Announced March 28, 2007 Data fees only Agnostic

Online bankers and wireless self-care users are a fertile segment to grow mobile banking awareness and adoption ,[object Object],Wireless Industry Online Customer Penetration (Monthly online customers that logged in divided by quarterly average subscribers, Q3 2005 – Q4 2006) Source: Compete

Online, wireless customers are mostly reviewing usage and paying bills ,[object Object],Please select the following tasks you set out to accomplish when visiting your carrier’s website December 2006 n=1,402 Source: Compete

Only Cingular has consistently increased online bill payment volume ,[object Object],1 column = 1 quarter One-Time Bill Pay Volume (Average monthly volume of Customers executing a bill payment, 1Q05 – 4Q06) Source: Compete

There is an existing comfort level with managing an account relationship on the handset ,[object Object],Have you ever used your wireless phone to manage your account (i.e. view bill, pay bill, check minutes, etc.)? December 2006 n=1,402 Source: Compete

Checking account balance and bills are a well positioned entry point for mobile banking adoption ,[object Object],Which activity do you primarily use your wireless phone for when managing your account? December 2006 n=617 Source: Compete

Traditionally, consumers exhibit strong interest in productivity tools ,[object Object],How interested are you in purchasing the following services or features for your wireless phone? Asked of wireless shoppers June 2006 n=2,005 Source: Compete

Key Findings & Implications ,[object Object],[object Object],[object Object],[object Object],[object Object]

What do online bankers do today? ,[object Object],[object Object],Which have you done in the past 90 days? (multi-select) n=307 Source: Compete

How many say they would use banking features on their phone? ,[object Object],[object Object],How likely would you be to use banking features if they were available to you on your wireless phone? n=307 Source: Compete

What banking features will consumers use on their phones? How interested you would be in doing the following banking-related services on your wireless phone? n=190 ,[object Object],Source: Compete

Willing to pay for mobile banking? ,[object Object],How much would you expect to pay to use banking-related services on your wireless phone per year? (n=190) Source: Compete

Preferred partner: bank or phone provider? ,[object Object],Which of the following are you most likely to use if you had to pick only one? (n=119) Source: Compete

What concerns do consumers have about mobile banking? ,[object Object],How much of a concern are each of the following issues to you regarding using banking-related services on your wireless phone? Source: Compete

What does this mean for service providers and financial institutions? ,[object Object],[object Object],[object Object],[object Object]

Additional food for thought ,[object Object],[object Object],[object Object],[object Object],[object Object]

Contact information Paul Zeckser Director (617) 933-5644 [email_address] Ryan Burke Director (617) 933-5645 [email_address] Financial Services Telecommunications & Media

Compete provides an unparalleled view of consumers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Consumer Attitudes Towards Mobile Banking Services

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