Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Not so fast on mobile banking says survey
MADISON, Wis. (3/7/12)--Growth in mobile banking and payments is being driven by younger consumers, according to a new study. Most adults are more reluctant to bank over their cellphones.

In an online survey of 504 U.S. debit cardholders conducted in January, Auriemma Consulting found that 40% of respondents had a cell phone capable of performing mobile-banking tasks. Of those, (84%) used their smartphone to bank within the previous year (PaymentsSource March 2).

Younger consumers are more likely to download a mobile-banking app. The study indicated that 43% of respondents younger than 45 had downloaded a mobile app from their financial institution within the previous year, while only about 22% of those older than 45 had done so.

Most respondents expressed some discomfort in making purchases with their mobile phones. About 47% said they were very or somewhat uncomfortable, 34% were very or somewhat comfortable, and 19% were unsure.

Among respondents younger than 45, about 48% said they were comfortable making purchases with their mobile phone, compared with 21% of those older than 45 who said the same.

The top reason respondents cited for their discomfort making purchases with their mobile phone was uncertainty about the technology's security (58%). That was followed by identity theft concerns (55%), fear of losing the phone and sensitive data (52%), "not needing a new way to make payments" (43%), distrust of the mobile-payment systems (34%), concern that it "may cost money" (27%), the belief that it "would not save any time" (21%) and they "do not understand it" (15%).

Saving time (51%) was the most common reason respondents listed for making payments through mobile, followed by "like new technology" (44%), it "would be free" (41%), it would create an option for a physical wallet (36%), they "understand it" (33%), it would provide greater security (31%), and it would be a more convenient way to pay (27%).

As the banking industry and other players develop products for banking and shopping with smartphones, "mobile payments are inevitable," Auriemma said.

About 75% of respondents with mobile-banking capabilities used their smartphone to check their account balance, 36% paid a bill, 32% received a bank notification, 31% paid by phone and also made a deposit, and 3% transferred funds. Some 17% of respondents said they made no mobile payments.

Until mobile banking and payments offer tangible consumer benefits such as saving time and money and provide a more-secure method for conducting transactions, mainstream consumer adoption is unlikely to materialize, Auriemma concluded.


RSS





print
News Now LiveWire
.@NACHAOnline report: ACH volume increases to 23B payments in 2014 http://t.co/va2WYMh4Zv
7 hours ago
.@CUNA's @HampelBill in @washingtonpost on options for wary mortgage borrowers: http://t.co/CPSgTNgwmm
13 hours ago
Housing starts thaw, mortgage rates stand pat #Market #NewsNow http://t.co/hhPj5v5AH3
13 hours ago
.@CUNA files #RBC2 comment, urges #CU system to be heard #NewsNow http://t.co/yfoZHAMlZc
13 hours ago
#NewsNow Youth Month attracts 100,000th member for Mich. CU http://t.co/cgF5o83XlK
14 hours ago