US banks risk losing out
(7 December 2009 – USA) US banks face the possibility of losing customers to aggressive competitors in the mobile banking space, according to Visa sponsored research.
Mercatus, which conducted the research, surveyed over 1400 US adults and found that nearly one third of consumers are using, or are considering using, mobile financial services in the next year.
The research also indicated that consumer adoption will grow within the next five years, and is expected to overtake the use of online banking by 2015.
Metcatus’s study revealed that a bank’s ability to offer mobile services is becoming more important when choosing an account than the availability of ATMs, debit cards and web banking.
Additionally, the group claims that a 60 percent increase in sales could be up for grabs for the first banks off the mark in offering the technology.
The consultancy claims that the reason behind this is because mobile services are more attractive to younger people with higher incomes and those that hold larger balances.
This group of consumers use more banking and card products and also display lower rates of attrition.
Bob Hedges, managing partner, Mercatus has said that owing to its rapid pace of adoption, mobile banking is a market that offers a clear first-mover advantage.
Banks that act soon, and aggressively deploy mobile financial services, will capture a clear market opportunity. Banks that delay will risk losing their best customers to the competition, Mr Hedges added.
The research also indicated that consumer adoption will grow within the next five years, and is expected to overtake the use of online banking by 2015.
Metcatus’s study revealed that a bank’s ability to offer mobile services is becoming more important when choosing an account than the availability of ATMs, debit cards and web banking.
Additionally, the group claims that a 60 percent increase in sales could be up for grabs for the first banks off the mark in offering the technology.
The consultancy claims that the reason behind this is because mobile services are more attractive to younger people with higher incomes and those that hold larger balances.
This group of consumers use more banking and card products and also display lower rates of attrition.
Bob Hedges, managing partner, Mercatus has said that owing to its rapid pace of adoption, mobile banking is a market that offers a clear first-mover advantage.
Banks that act soon, and aggressively deploy mobile financial services, will capture a clear market opportunity. Banks that delay will risk losing their best customers to the competition, Mr Hedges added.
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