42 Percent of US Consumers with Handheld Devices Satisfied with Mobile Banking

YouGov Plc. and Antenna Software, Inc. recently conducted an online survey to map the usage of the mobile banking though handheld devices like mobile phones, smartphones and tablets. After the survey of more than 2,000 respondents, the results showed that more than one in three US consumers with handheld devices uses mobile banking.

In a press release, Jim Hemmer, president and CEO of Antenna, said, “While financial institutions around the world are reaching a growing number of consumers through current offerings, there is a significant opportunity for banks to develop and deploy a holistic mobile banking strategy to meet the needs of their entire customer base. Building on the existing security and basic functionality available in today's mobile apps and websites, organizations can establish a competitive advantage in the future by offering a full complement of mobile banking services that foster trust with consumers as they increasingly embrace m-commerce.”

The results give major growth opportunity to both retail banks and mobile application developers. The banks can use this information to expand their customer base while the organizations involved with mobile offerings can introduce new advanced technologies and "sticky" mobile apps for greater customer loyalty and competitive advantage.

The major hurdle for consumers to adopt mobile banking is security concern; according to the survey, 66 percent of mobile internet users would not bank regularly via a mobile app or mobile website due to these concerns. Also, it was revealed that consumers trusted the brand more. It has become important for financial institutions to educate consumers on the security of their services, adequately brand their offerings and communicate trust to capitalize on the growing mobile banking trend.

Nearly 42 percent of the mobile internet users who have used mobile banking in the past said their most recent experience was positive and received the functionality they needed. In fact, 55 percent of mobile internet users have or would like to check their balance on their mobile device, while 43 percent have used or would like to view transaction history. 36 percent of people use or would like to locate the nearest branch or ATM, suggesting that convenience should lay a foundation for offerings that leverage the features and built-in sensors of smartphones and tablets to simplify consumers' lives.

Antenna Software was recently in the news when it was positioned by Gartner (News - Alert) in the "Visionaries" quadrant of the Magic Quadrant for Mobile Consumer Application Platforms (MCAP).

Sujata Garud is a TMCnet freelancer with three years of writing/editing experience and two years of market research experience. As an editor she has covered the IT, electronics, banking, pharma, construction, mining and healthcare industries. To see more of her articles, please visit her columnist page.