While still in its infancy, paying bills on mobile devices is primed for rapid growth. Already, over 12.5 million Americans are using mobile bill pay, according to a new report from Javelin Strategy & Research.
Javelin estimates Americans pay $2.1 trillion annually to pay seven bills that are central to a consumer’s day-to-day living and form the foundation for a deeper borrowing relationship: major credit cards usable anywhere, store-branded credit cards, utility bills, mobile phone bills, mortgages, vehicle loans, and student loans.
More than 140 million Americans are ripe for mobile bill payments, with one-third representing new users of bill payments at their bank or credit union.
“A wide range of companies have much to gain if they can stand out among mobile bill-payment providers. That starts with FIs that want to be the centerpiece of customer payments and jolt flat-lining growth in online bill payment, and billers that are seeking more efficient ways to collect payments and maintain direct contact with customers,” said Mark Schwanhausser, Director of Omnichannel Financial Services at Javelin Strategy & Research.
Bank Anywhere from Monitise offers the most advanced and innovative set of mobile banking capabilities in the industry, including Mobile Bill Pay. To learn more, click here.
30 percent of consumers plan to do most of their Black Friday shopping online this year (compared to 25 percent last year), and mobile will play a critical role in driving Thanksgiving weekend online sales, according to a recent report from Accenture.
While mobile is a growing proportion of online sales overall, the percentage of online sales from mobile devices could be even higher than usual on Black Friday, as many users will be away from their desktops and therefore are more apt to shop via their mobile devices.
Overall, a growing number of consumers are planning to make purchases or research gifts using their tablets and smartphones during the 2013 holiday shopping season, according to the report.
Specifically, 19 percent of consumers plan to use their tablets for shopping this holiday season, up from 15 percent last year, while 18 percent will use their smartphones, up from 14 percent.
“It is very likely that smartphones and tablets are leading the charge in the spike in Thanksgiving Day online shopping,” said Renato Scaff, Phoenix-based managing director in the retail practice at Accenture. “Retailers should understand that, given the rapid adoption of tablets and smartphones, the growth in mobile commerce during Thanksgiving will continue to be strong.”
The number of community banks that offer mobile payments is increasing, according to a recent survey from the Independent Community Bankers of America (ICBA).
The 2013 ICBA Community Bank Payments Survey showed that 37 percent of community banks now offer mobile payments (an increase of 23 percent over 2011), and that another 43 percent intend to offer mobile payments by 2015.
Larger community banks are leading the way, with 54 percent of banks with $501 million or more in assets offering mobile payments. Community banks with $251 million to $500 million in assets are not far behind, with 46 percent offering mobile payments.
“The 2013 ICBA Community Bank Payments Survey confirms what we are seeing anecdotally in the marketplace—that community banks are increasingly offering mobile banking services to meet the evolving needs of their customers and enhance overall customer service,” said Viveca Y. Ware, ICBA executive vice president, regulatory policy. “The survey also reveals that community banks are increasingly seeing payments as a relationship-builder—something that is right in line with the community bank relationship lending model.”
52 percent of community banks identified the desire to improve customer service as the primary motivation of their mobile payments strategy (versus 47 percent in 2011). Meanwhile, 59 percent said that increasing profitability was an important part of their payments strategy, compared with 70 percent in 2011.
News and insights from the Mobile Money industry, by Monitise Senior Vice President, Industry & Investor Relations, Andrew Griffin.
Javelin US Mobile Banking Rankings: According to Javelin Strategy & Research, 73% of financial institutions (FIs) offer SMS text banking, browser-based banking and downloadable apps, and 45% of consumers have accessed mobile banking in the past 90 days, compared to 26% in 2012. Javelin rates Bank of America’s mobile service as giving the best experience thanks to the range and quality of offerings; BBVA offers the best mobile functionality and Citizens Bank and USAA have the best apps. While this gives a detailed look at the breadth of mobile banking functionality in US offerings, one thing it misses – because few banks disclose it – is usability. An app that is accesses 25 times a month by consumers is far more valuable to an FI than one accessed 5 times a month, meaning that pure functionality breadth is not the only way to measure a mobile banking app’s success.
Accenture on Digital Banking: A recent report by Accenture shows that while 26% of bank customers use mobile banking at least once a month, 80% of people claim they will visit branches just as frequently 5 years from now. Full-service banks stand to lose about 35% of their market share by 2020 to competitors with advanced digital offerings.
ath on Small Business Mobile Banking: The ath Power Small Business Banking Study finds that small business mobile customers use mobile banking services more frequently than their retail banking counterparts. According to ath, 66% of small business mobile customers would consider leaving their current bank if they could find an alternative with better mobile banking. The most desired mobile functionality is Credit Card Acceptance at 65% (offered by only 43% of mobile offerings), followed by Credit Checking of Customers (desired by 52% of customers and offered by only 26% of banks). Small business customers are used to paying for banking services and 63% (double the number of retail customers) are prepared to pay for mobile banking.
Europe and United States Slow on Banking Innovation: Jim Marous’ blog uses an Infosys study to examine how banks are prioritizing innovation. 73% of banks in the Americas are increasing innovation this year – less than banks in the Middle East, Africa and Asia Pacific, but more than Europe. Legacy systems and risk aversion are blamed most often for US banks’ reticence to innovate. Mobile P2P payments have been deployed by 29% of banks, mobile location offers by 18% – with a further 51% planning on doing so – and gamification, an interesting way of encouraging deeper engagement, by 9%. Read More »
Monitise Chairman Peter Ayliffe recently delivered a lecture in the UK entitled “The Leadership Challenge of Growing Businesses in the Digital Age.” As part of his presentation, Peter spoke about how smartphones are opening up opportunities for all businesses. The lecture was given as part of the Bristol Distinguished Executive Address Series.
In a series of video interviews before the lecture, Peter was asked about the Monitise business, the digital economy and in the increasing attention businesses are paying to mobile commerce. You can see the videos by clicking on the following link.
Peter, who led Visa Europe as president and chief executive for more than seven years until his retirement from the role, took on his duties as Non-Executive Chairman of Monitise at the start of October. Prior to that he had served on the Monitise Board since November 2011.
Monitise presented on a panel, “What do under 21’s think about banking”, at The Economist’s European Retail Banking Summit in London last week. Working with AlixPartners, we have a wealth of statistics on how young people use banking – and in particular mobile banking services – and wanted to share some of our findings. While the definition of “young” at 18-25 years old doesn’t quite fit with the under-21 topic of the panel, it does give good insights into the demographic differences in mobile usage, and, of course, provide an insight into where mobile penetration will be going in the future.
It should come as no surprise that younger consumers are more avid users of mobile banking. In the US, 47% of people surveyed by AlixPartners were mobile bankers, up from 30% a year ago. That compares to around 15% for their parents (up from 10%), taking the average of the 45-54 and 55-64 age groups.
It should also be no surprise that mobile bankers are a much higher penetration of smartphone users, at 60% for the younger demographic, compared to 30% for their parents. Read More »