Mobile Banking and Payments Study: Multi-Device Mobile Support Becomes Ubiquitous; Rewards & Payments Grow
LINTHICUM, MARYLAND – First Annapolis Consulting’s third annual Mobile Banking and Payments Study reveals that 81 of the top 100 U.S. financial institutions currently offer some form of mobile banking, an 11% increase over the same figure one year ago. In addition to offering access through smartphone applications and the mobile web, 60 of the FIs offer some form of alerts or account management functionality via SMS (text message), and 26 banks have also launched an application optimized for tablets. This data highlights the omni-channel approach financial institutions are pursuing as mobile banking services become more widely accepted by customers.
Availability of advanced banking features, while still nascent, is increasing rapidly with mobile remote deposit capture (mRDC) enablement tripling in the last year. Person-to-person (P2P) payments adoption is also on the rise, led by the largest banks. Other mobile commerce and payments functionality is growing as well, with nine banks currently offering the option to redeem credit card rewards inside their app and eight banks already engaged in some form of partnership or trial for a mobile wallet concept.
“The findings from the study indicate that banks are beginning to leverage their mobile applications to build a ‘pathway to payments’ by enabling features like bill payment and P2P,” according to Paul Grill, the Partner who leads the First Annapolis Mobile Commerce & Alternative Payments practice. Grill adds, “Furthermore, marketing features like rewards programs and offers can provide banks with tools to compete with new market entrants when mobile becomes more pervasive for retail purchase transactions.”
Building on previous efforts in 2010 and 2011, this report provides insights on the features and functionality of the mobile banking and payment offerings from the 100 largest U.S. financial institutions (FIs). The growth of mobile banking in various channels and platforms is shown over the last two years, including snapshots of the most prominent core and advanced banking features. The study also includes information on the mobile payments and commerce features FIs have announced, including bill pay, person-to-person (P2P) payments, rewards, and loyalty. For more information or to view the full prospectus, visit the study webpage.
About First Annapolis
First Annapolis is a management consulting and M&A advisory firm focused on the financial services industry with a specific emphasis on payment-related products, services, and delivery. Clients include U.S. and international financial institutions, payment networks, mobile service providers, retailers, emerging payments providers, and government agencies. We offer a full range of services including strategy development, market & competitor assessments, financial analysis & business casing, strategic sourcing, specialized risk management, and other payment industry specific services. First Annapolis also offers a suite of specialized M&A advisory services that complements our consulting practice.