Ideas & musings about consumer behaviour

Mobile banking – why? why? why?

Today’s business section of the Melbourne daily newspaper The Age ran an article by Clancy Yeates about the nature of mobile banking. The brief article cites that 40% of all digital log-ons were from mobile but only constituted 9.6% of total digital transactions. This article however did not articulate ‘why’ this is so, or explain the behaviour of those 30.4% that use mobile banking for non-transactional reasons.

A recent study conducted by Global Reviews found similar results, namely that 57% of surveyed participants would not use mobile banking (leaving 43% that would) – the study also identified that 71% of those who do use mobile banking – or 30.5% overall – would use mobile banking to view account balances only. This leaves a further 9.5% of mobile bankers who engage in some transactions. The first insight that emerged from the Global Reviews study into the mobile banker’s behaviour, was that viewing account balances is acceptable on the phone but transacting is not. The question then arises as to why is this the case?

Again, the Global Reviews study provides an answer by not only collecting data for statistical purposes but also by trying to understand consumer behaviour. The major reason why people do not transact via their phone is that they are afraid others will be able access their account if they loose their phone. This is despite the fact they can lock their phone, independent of the banking apps, and that all the banking apps require you to provide a password each time they are accessed. The second and third reasons why transactions are not made from a mobile were due to security and privacy concerns, understandably, but the fourth reason was a fear of making accidental payments or transfers.

So, while the article and its statistics paint some of the story, the implications for banks are to ensure their mobile apps permit only the account holder to access the account, highlight privacy and security measures and provide reassurance that if a transaction was made accidentally there will be avenues for investigation. It is these insights that will ensure that for banks to increase growth of mobile use they will directly address the concerns of consumers.

Click here to download the full report.

Learn more about Global Reviews Mobile Research.


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