This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Consumers Ready for Mobile Banking, but Banks Aren't

NEW YORK ( TheStreet) -- It's no secret that financial consumers are warming up to mobile banking, largely for reasons of convenience.

According to Juniper Research's report, Mobile Banking: Handset & Tablet Market Strategies 2013-2017, more than $1 billion cellphone owners will use their devices for banking purposes by 2017, up from 590 million this year.

To provide some context, total world population growth by 2017 is 7.6 billion.

Yet a separate study from Javelin notes that consumers are growing increasingly frustrated by their mobile banking experiences. As a result, many consumers will leave banks and turn to outside sources, mostly technology outfits.

"Trust in financial institutions is under assault by a seemingly endless list of players, including Apple (AAPL), Google (GOOG), mobile carriers and scores of innovative [personal financial management] players," the report says. "Because so many new players are fighting [financial institutions] for market share by offering competitive consumer‐friendly services, like personal financial management and alerts, FIs must act quickly to demonstrate they understand their customer and put their financial interests first."

That's not happening fast enough for many consumers.

A survey from Varolii, a Seattle technology management firm, says there is a big gap between what financial customers want from mobile banking from large financial and what they're getting.

Varolii says if consumers don't get "advanced" functions such as automatic check deposit and real-time notifications, they risk losing the trust -- and possibly the business -- of customers.

"There's an app for everything in today's mobile-driven consumer environment," says Brian Moore, financial services market manager for Varolii. "As the economy has suffered over the past few years, consumers are turning to apps for financial management as well. However, our study shows that most banks are failing to deliver on consumer expectations with first- or second-generation mobile banking applications."

The Varolii survey says that about 66% of banking consumers expect the bank to notify them when funds are running low or if they don't have enough cash to cover a bill or payment. Another 70% say there "should be an app for that" -- and it's the bank's responsibility to create one that fits a financial consumer's needs.

About half (47%) of survey respondents say banks should notify them of banking issues via email, while 22% favor texts and 13% prefer getting notices via a smartphone app.

For consumers, it's all about banks keeping up with technology -- or better yet, staying ahead of the game.

"We believe that most institutions are operating on second-generation applications," notes David McCann, CEO at Varolii. "Today, institutions need to upgrade to the next level by embedding more proactive, rules-based outreach into their application code. Also, smartphone apps are just one more channel that has to be orchestrated into a holistic customer experience across voice, text, email and mobile devices."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs