MOUNTAIN VIEW, Calif. (11/3/11)--Nearly one in four Americans currently uses mobile banking, and another 17% said they will try it in 2012, according to a new survey, which also found that 36% of those surveyed would switch institutions due to new service fees.
The Intuit Financial Services' Fourth Annual Management Survey also found that many people remain loyal to their financial institutions, with 45% indicating they have been a member/customer of a credit union or bank for more than a decade. However, 36% of survey respondents indicated they planned to switch--or have already switched--institutions due to new service fees.
Intuit, based in Mountain View, Calif., is a provider of online and mobile solutions for credit unions and banks. It is a CUNA Strategic Services alliance provider.
Consumers who are 18- to 32-years old are three times more likely to adopt mobile banking than Gen X, baby boomers and seniors, the survey found. More consumers prefer to go online with their financial institutions rather than visit in person, said Intuit.
Thirty-eight percent of Americans surveyed already use the online services provided by their credit union or bank to manage their personal finances, and 33% said they would switch financial institutions for one that offers solutions that provide better member/customer experience.
"Banking on customer inertia is not a viable growth strategy," said CeCe Morken, president and general manager of Intuit Financial Services. "Financial institutions should instead lead by engaging customers on their terms and delivering the experience they define."
- More consumers now have a smartphone--41% of respondents reported owning a smartphone and 23% said they use a mobile banking solution;
- Of those, 65% access their account information through the Internet, and 28% use a mobile application from their credit union or bank;
- Six percent of smartphone owners use mobile devices to remotely deposit checks, and 54% of that group do so at least once a month while 39% use it weekly;
- When asked what is the most important feature they use while banking online, 64% of smartphone owners said that tracking account balances; 34% said paying bills, and 28% said transferring funds. However, 70% indicated they would like to see their complete financial picture and manage and pay all their bills in one place, regardless of the source of information.
"Regardless of age, each customer expects to connect with their financial institution in their own way," said Morken. "Whether it is online, mobile or most likely both, financial institutions must provide the right technologies if they are to truly engage their customers."
During the past year, an Intuit study of more than 50,000 mobile banking customers across 12 financial institutions found that people interact on average 45% more often with their financial institution if using online and mobile solutions in combination, as opposed to online alone. Those who used both solutions also held, on average, 9% more deposit and loan accounts than people without digital solutions.