Mobile-Banking Lagging Due To Ineffective Marketing by Banks

­Banks' marketing efforts are not keeping pace with their actual mobile-banking services, and the imbalance is causing limited adoption of mobile-banking by consumers, reports a study by Javelin Strategy & Research.

The study found that 50 percent of financial institutions do not adequately address consumers' two primary mobile banking concerns. The report also rates the mobile-banking offerings of 18 top financial institutions based on features, access to mobile-banking services and marketing. Gold-category winners identified by Javelin include Bank of America, Chase, Citi, USAA and Wells Fargo.

"We also found that certain mobile-monitoring capabilities are finally exploding," said James Van Dyke, President and Founder. "For example, 72 percent of the banks we surveyed offer all seven of the account-monitoring features we recommend. But at the same time, mobile money-movement features are lagging: Only 33 percent of institutions allow transfers between customers at the same financial institution."

The study specifically noted that none of the banks currently allow unique mobile enrollment or opening of accounts via mobile channels, while 17 percent of financial institutions have poor accessibility to mobile offerings.

Half of the banks analyzed provided sufficient security messaging on their Web site but 17 percent included no mention of security despite this being one of the strongest factors preventing consumers from adopting mobile banking.

"For financial institutions looking to expand their mobile-banking marketshare, one of our key recommendations is to provide access via text messaging, Web browsers and applications," said Mark Schwanhausser, Financial Services Analyst. "Mobile banking will be most accessible and powerful when it is available to consumers regardless of the type of phone they carry and the wireless carrier they subscribe to. Triple-play accessibility will put customers in charge, enabling them to decide which method to use at a given time for a given transaction. It's not about telling customers which channel is best for them. They will choose for themselves, and they will want flexibility."

Posted to the site on 22nd October 2009