Mobile Banking Quantified: Comprehensive Benchmarks for US Vendors & Institutions

by Stephen Greer,  Daniel Latimore,  Bob Meara, December 6, 2016
Operations/ Benchmarking
Global, North America

Abstract

Celent has released a new report titled Mobile Banking Quantified: Comprehensive Benchmarks for US Vendors & Institution written by Daniel LatimoreBob Meara, and Stephen Greer, analysts with Celent’s Banking practice. 

Key Research Questions

Summary

 

1

What insights are provided by a comprehensive view of the entire US Mobile Banking market?

Celent and FI Navigator have collaborated to leverage a proprietary data capture methodology that examines the state of US retail mobile banking by cataloguing the offerings of more than 6,000 financial institutions (FIs). The benchmarking provides detailed analyses covering FI adoption of personal mobile banking and related features; customer utilization and satisfaction by FI and vendor; and vendor market share, market share accretion, and churn. The data and analysis are synthesized from publicly available sources as of September 30, 2016, and cover the entire banking industry as well as 48 different retail banking mobile app providers. This analysis is the second in a series; the first examined data from March 31, 2016.

2

What are the most significant mobile developments for US FIs?

3

What are the key trends and benchmarks for US mobile vendors?

Financial institution adoption of mobile banking apps increased from 52% to 57% as smaller institutions get on the mobile bandwagon. Overall customer enrollment increased from 25.3% to 27.6% Modest growth in mobile feature adoption, particularly Quick Balance (26.7% vs. 7.5%) and Fingerprint Authentication (13.0% vs. 10.6%)
 
"US Mobile banking adoption is lower than one might expect based on the headlines: only 57% of all institutions have an app. This is driven primarily by poor adoption among smaller institutions with less than $100 million in assets," commented Dan Latimore, Senior Vice President of Celent’s Banking Practice.

"The vendor market can be divided into two large groups: multi-product solutions providers and pure plays. In either case, the key to mobile success is adoption by end consumers; vendors are typically paid based on some variant of installed users," he added.

Please note: The download link above is a brochure. This is a special report released through a partnership between Celent and FI Navigator, and it will not be released to current subscribers of Celent’s Retail and Business Banking. Instead, it is being sold as a stand-alone report that will be updated every six months. To find out more about how to obtain a copy, as well as access to the complete FI Navigator platform, please contact Ken Kilduff at kkilduff@celent.com.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1 

Key Research Questions

1 

      Report Highlights

1 

Introduction: Financial Institutions Must Get Mobile Right

4 

Institution Analytics 

6 

      FI Mobile Adoption

6 

      Customer Utilization

10 

      Mobile Features

13 

      Feature Lift

20 

      Customer Satisfaction

21 

      Churn Rates

25

Vendor Analytics

28

      Market Share

28

      Market Share Accretion

32

      Churn Rates

35

      Customer Utilization

39

      Customer Satisfaction

42

      Client (FI) Demographics

45

Implications

49

Appendix A: Methodology

51

Appendix B: Legacy Research

53

Leveraging the Expertise of Celent and FI Navigator

54

      Additional Products

54

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