The document discusses various topics related to mobile technology and banking. It provides statistics showing that the US lags behind other countries in mobile adoption but that 4G networks will help close the gap. Mobile video usage is growing significantly and location-based services are popular. Mobile banking adoption is increasing in the US, with over 40 million users expected by 2012, and incentives help drive adoption especially among younger customers. Banks can reduce costs through mobile banking by lowering transaction costs and replacing repetitive tasks done by employees.

1. Dashboard Loyalty DigitalWorld Banking Mobile iPad Credit Unions ZSL UpSell Blackberry BankCompanion CrossSell Community Banks Service Cost SMS Architecture Android Security

2. MOBILE TECHNOLOGY

3. Asia is ahead on almost every metric, and the U.S. kind of catching up. For more advanced things like mobile commerce, the U.S. also ranks near the bottom among 16 countries included in the survey, which polled 4,100 people in Argentina, Australia, Canada, China, France, Germany, India, Indonesia, Italy, Malaysia, Mexico, Singapore, South Africa, Spain, and the United Kingdom. SOURCE: SYBASE The U.S. is Behind the Mobile Curve

4. A whole new generation of wireless networks is already being rolled out. The gains in terms of data speed and capacity stand to be significant — imagine having the broadband speeds you’re used to at home but on your phone or portable wireless hotspot. Sprint will be the first to market with its 4G WiMAX network. The network is rolled out in 27 major metro areas of the U.S. already, with at least 15 more cities to get coverage before year’s end. SOURCE: CTIA WIRELESS ASSOCIATION The 4G Generation

5. With video becoming such a dominant force driving internet usage, and a perfect storm of fast networks and smart devices that can handle it, video will likewise be a significant driver of mobile data usage as well — occupying an estimated 66% of mobile traffic by 2013, according to Cisco. SOURCE: CTIA WIRELESS ASSOCIATION The Mobile Video Explosion

6. 63% of smart phone users say they “frequently” use apps that deliver specific content depending on the user’s location. More than one-quarter of U.S. mobile phone users have used a location-based service, and that 10% do so at least weekly. SOURCE: MOBILE MARKETING ASSOCIATION Location-Based Services are Popular

7. Apple sold 1 million iPads in the first month since the product was introduced. 7.8 million iPads and similar devices will be sold this year, and more than twice that number next year. SOURCE: IDG RESEARCH The Rise of Slate Computing …

8. Decline of the Laptop & Netbook 27% of iPad purchases will be made instead of buying a desktop PC, and 44% instead of a laptop. SOURCE: MORGAN STANLEY

9. Android phone owners use mobile banking most often. SOURCE: JAVELIN RESEARCH Android Gaining Ground

10. Android’s Strength … Android’s strength comes from its openness . The Android software development kit is open source and the license governing Android itself allows any phone manufacturers to use and modify it. This allows Android to shape the future of mobile computing by making it available to any hardware manufacturer that wants to use it. This means that Android is likely to be the OS of choice for future mobile computing hardware like tablet PCs or E-book readers. SOURCE: THE DAILY MONITOR

11. Google says over 100,000 new Android-based handsets are activated every day. This suggests Google's Android phone growth is greater than Apple's iPhone growth. Last quarter, Apple reported sales of 8.75 million iPhones, which is 97,222 units per day Android Sales Outpacing Apple

12. Yamgo, a mobile TV firm, has released beta software for Android users so that they can see live streaming of high-quality mobile TV and video on demand. SOURCE: MOBILE COMPUTING Android TV is Coming …

13. MOBILE BANKING

14. More than 40 million U.S. consumers will be using mobile banking by 2012 . SOURCE: THE YANKEE GROUP The Rise of Mobile Banking

15. Banking Relationships Have Changed Dramatically Efforts by retail banks to restore customer profitability face new and long-term challenges on several fronts. According to the an Accenture study: 59% of executive interviewed reported decreased customer loyalty since the financial crisis 63% say their customers are more price sensitive 63% say their customers are "shopping around" more frequently SOURCE: ACCENTURE

16. The Rise of Mobile Banking: Key Trends The Majority Use Smart Phones The Key age segment is 25-34 year olds Mobile Banking users are more affluent Men outpace woman Speed & Convenience are Top Benefits SOURCE: THE YANKEE GROUP

17. Balance enquiry: 74% Notifications: 73% Statements: 48% Notification of account limit: 47% Transfer funds between accounts: 35% Pay accounts: 28% Make a purchase: 21% SOURCE: BERG INSIGHT What Consumers Want from Mobile Banking

18. Incentives were a strong motive for younger people to sign up for mobile banking services, which allow them to keep track of checking and savings accounts on their cell phones. Of respondents to a survey, 40 percent of people 18 to 45 said incentives tipped the scales when it came to picking mobile banking. SOURCE: AURIEMMA GROUP Incentives Help Drive Adoption

19. A telling statistic is that the branch as the preferred method has gone from 36% to 21% in just 3 years - that is a decline of 41% in just 3 years for the branch as the 'preferred' method of banking. With mobile internet banking adoption skyrocketing, check usage in question, we can expect this rapid decline to continue over the next 3-5 years . SOURCE: AMERICAN BANKERS ASSOCIATION THE SHIFT FROM AWAY FROM THE BRANCH

20. The iPad has sold over 1 million units in just over 1 month since its release, but this pales in comparison to the iPhone which has exceeded 100 million total units, with sales globally expected to reach 58 million this year. Google’s Android operating system has been a huge success too. In Q1 of 2010 in the US market, Android-based phones outsold iPhones with 28 percent of the market Share of smart phones going to the Google platform. Blackberry still commands 36 percent of the US market due to its strong enterprise support. Less than 2% of US banks and credit unions have a dedicated mobile app for any of these platforms. Banking & Mobile Apps

21. The conventional process of depositing checks means that a business loses a lot of time and money. As RDC can drastically reduce the time and cost of depositing checks, almost every bank is now offering RDC to cater to new customers as well as to retain existing ones. RDC has shown an impressive growth rate of 70% from 2004 to 2008. SOURCE: MARKET RESEARCH.COM Remote Deposit Promises Greater Efficiency

22. CONSUMERS WILL … Reduce Visits to Branches Reduce Calls to Contact Centers Change Their Spending Patterns Generate More Transactions Become more aware of their money Become more educated about money BANKS WILL … Realize a Reduction in Costs Be able to Generate More Loyalty Be Able to Increase Their Customer Base Create new mechanisms to stimulate impulse buying Create new sales and marketing approaches Mobile banking will change the competitor profile SOURCE: MOBILE-FINANCIAL.com Technology Changes Behaviors

23. COST REDUCTION

24. The IT budget at most banks typically represents roughly 15 percent of the total operating costs. But more important, the IT budget is critical to taking costs out of the other 85 percent of the cost base. So initiatives to reduce technology costs must be undertaken within the context of how such initiatives facilitate cost reduction more broadly across the business . SOURCE: BANK SYSTEMS & TECHNOLOGY Strategic Cost Reduction

25. Using a mobile platform such as SMS text messaging for simple and repetitive tasks such as reminders about payments due or balance requests can reduce the burden on IT and personnel resources. Using secure and integrated messaging platforms means that you can reduce the costs and errors associated with paper-based payments . Reducing Repetitive Tasks

26. One of the biggest advantages that mobile banking offers to banks is that it drastically cuts down the costs of providing service to the customers. An average teller or phone transaction costs about $2.36 each, whereas an electronic transaction costs only about $0.10 each . Additionally, this new channel gives the bank ability to cross-sell up-sell their other complex banking products and services such as vehicle loans, credit cards etc. SOURCE: MOBILE BANKING NEWS Reducing the Cost of Service

27. While silo, channel-specific services are initially faster to implement, they create limitations as banks move from simple mobile banking services to full mobile commerce offerings. Having silo platforms in your initial implementations makes migrating to more sophisticated services technologically costly, as data, security and architecture attributes have to contend with multiple platforms. SOURCE: IT-DIRECTOR.com Silos Increase Costs

28. Selling new products to existing customers has long been on most financial institutions’ agendas. Yet historically, few have had significant cross-selling success. Successful cross-selling requires that you understand what your customers need and that you keep track of their interactions. SOURCE: BANK SYSTEMS & TECHNOLOGY A Failure to Cross Sell

29. SALES & MARKETING

30. The Mobile Sales Opportunity Th ere is an interesting opportunity in the mobile market to use the real time response capability of prescreen-of-one to meet the high expectations of mobile consumers. Imagine the impact of offering relevant, pre-approved products to consumers based on their current and immediate needs. The response rate for relevant offers is always higher . SOURCE: U.S. BANKER

31. One of the most interesting dichotomies is the gap between institutions that can rapidly adapt their business rules and origination process to changes in the market and those who cannot. Today’s financial markets can be punishing for institutions slow to respond to change. In the mobile world, financial institutions that wait to implement sophisticated cross-selling techniques will miss much of the opportunity. SOURCE: U.S. BANKER The Mobile Marketing Gap

32. Loyal customers are those who stick with the financial organization over the long term. They tend to transact and invest more over time as their income grows. Increasingly, they devote a larger “share of wallet” to the financial organization they feel good about. They are also those customers who will tell their family, friends and business associates about you. Loyal customers dramatically lower the cost of acquiring new customers. SOURCE: HARVARD BUSINESS REVIEW A Loyal Customer …

33. Financial Institutions Fall Short Fewer than 30% of the average bank’s customers consider their bank for their next banking product purchase. SOURCE: FORRESTER RESEARCH

34. The return on investment in the mobile banking space is directly correlated to maximizing adoption and usage. The Key to Mobile ROI …

35. Financial institutions counting on an OLB-dependent strategy can only expect to reach 8% of their total customer base. SOURCE: ONLINE BANKING REPORT The Wrong Approach …

36. Enable Customers Personalization Optimize the Customer Experience Look to the Future Extend Mobile Across the Organization Continuously Measure Response Utilize Best Practices Target 100% Coverage

37. Multi-Channel Enrollment Online Website Contact Center Branch Tellers Mobile Devices ATM Locations Interactive Voice

38. “ Give people more control over their banking and you’ll win their loyalty. That’s because mobile is not a channel so much as a way consumers live their lives and consequently, the way banks have to conduct their business.” Douglas Brown Senior VP Mobile Product Development Bank of America The Way We Live & Work Today