Despite security concerns, more consumers are using mobile banking services. These consumers represent a unique demographic niche that cuts across traditional age and income categories. Banks that target users of mobile banking services will enjoy strong profits from loyal customers and grow market share as acceptance of this service grows.
According to a recently published report by Nielsen, about 13.2% of U.S. households are already checking their bank accounts on the run. To do so, consumers are using both mobile phones and other devices. The growth rate between Q1 2010 and Q2 2010 was as follows:
- Mobile Phone (+.1% now at 20.8%)
- Other Mobile Device (+1.6% now at 13.2%)
In general, mobile banking consumers have more money and higher net worth than average as these figures show:
- Average Deposit Balance – Phone Access $53,138
- Average Deposit Balance – Mobile Access $64,303
- Average Net Worth – Phone Access $317,113
- Average Net Worth – Mobile Access $341,017
Apart from having money, most mobile bankers tend to fall into the following behavioral categories:
Social Texters – This primarily younger group, ages 18–24, makes up nearly 20% of mobile bankers and uses the service to check on balances.
Mobile Office Workers – This group, ages 35–54, has the highest rate of Smartphone ownership, is image-conscious, and uses mobile banking at a higher rate than any other group.
Country Club Communicators – This group, ages 45–64, has plenty of money, tends to be well-educated and adept at using Smartphone technology. Loyal to a primary bank, this group uses multiple banking services.
To properly target consumers, Nielsen analysts recommend that banks encourage members of the Mobile Office Group to socially network with like-minded friends to discuss benefits of mobile banking. At the same time, the services should be positioned as an immediate solution to a problem. The ‘real-time response’ satisfies a consumer need. Banks can also expand to underserved populations by promoting mobile banking to the children of the Country Club Communicators group.
As more consumers begin to use their Smartphones as the new personal computer, a well-handled ad campaign can help banks grow market share.[Source: Sumner, Deborah. Mobile Banking: A Growing and Lucrative Market. Nielsen.com. 19 Nov. 2010. Web. 3 Dec. 2010]