Customers Increasingly Rely on Mobile Banking

Wednesday, October 03 at 04:30 PM
Category: Personal Finance

Smart phone growth has completely remolded the way people manage their accounts and finances day-to-day.  The release below reveals powerful numbers reflecting the growth of mobile banking over the past several years, forecasts what's to come as it continues to grow and how Arvest Mobile Banking has become a key product to keep up with customers' needs.

In our technology-driven world consumers have come to expect instant gratification, and financial research along with changes in behavior show they are demanding more from their banks.  According to a recent study from the Federal Reserve, the features of mobile phones are rapidly changing the way bank customers access their money. Over 20 percent of mobile phone owners have used mobile banking in the past 12 months, and 11 percent of those not currently using it say they will probably use it in the next 12 months. 1

Mobile banking growth is expected to be substantial in coming years. According to a Forrester research report, the United States will have 108 million mobile banking users by 2017. That is approximately 46% of all U.S. bank account holders.2   Arvest Bank reports a dramatic shift in customer use of their Mobile Banking product.  The number of Arvest customers banking with a mobile device has more than doubled in the last 12 months, and has tripled from the beginning of 2011.

With the widespread growth of internet-enabled smart phones, people can bank anytime and from anywhere, and can access different financial services. According to the Federal Reserve’s 2012 Consumers and Mobile Financial Services Report, the most common use of mobile banking is to check account balances and recent transactions (90 percent). Transferring money between accounts is the second most common use, with 42 percent of mobile banking users utilizing this feature.  

The modern convenience of mobile phones is also changing the way people make payments. In the past 12 months, 12 percent of mobile phone owners have made a mobile payment. In fact, mobile bill payments are the most common use of mobile payments, with 47 percent of mobile payment users accessing this feature. Twenty-one percent of mobile payment users regularly transfer money directly into another person’s bank or PayPal account. 1

With consumer’s changing habits, banks all over the country are developing mobile applications with advanced features to meet their customer’s needs. Since the release of Arvest Bank’s most recent mobile application last year, the number of users has more than doubled. Overall, 35 percent of Arvest Bank’s online customers now use mobile banking. The bank is launching an updated mobile application this month. Apple’s iPhone is the most common smartphone device used for Arvest Mobile Banking, making up almost 2/3 of users, and is then followed by Android devices.

“Our customers are utilizing mobile banking offerings more than ever before, and we are updating our application to better meet their needs,” said Jason Kincy, Arvest Bank spokesman.  Of the current Arvest mobile offerings, balance inquiries, account history viewing, making bill payments and locating a branch are the most utilized services. The platform of the updated mobile application will allow the bank to provide mobile deposit services later this year.

“The trend towards using mobile banking for a variety of services will only continue to grow,” said Kincy.  “Our updated mobile application is the next step in meeting growing demand from customers to be able to bank while on the go.”

Mobile banking is certainly on the rise, with the Federal Reserve’s 2012 Consumers and Mobile Financial Services Report stating that some consumers use mobile banking up to 60 times per month, though the typical number of banking transactions was four or five per month. And, with 62 percent of consumers being “very satisfied” with their mobile banking experiences, and an additional 32 percent being “somewhat satisfied,” it is clear that mobile banking is here to stay.
 

Sources:

1. Federal Reserve Division of Community and Consumer Affairs: Consumers and Mobile Financial Services, March 2012.
http://www.federalreserve.gov/econresdata/mobile-device-report-201203.pdf


2. Lardinois,  Fredric. “Report: 46% of U.S. Bank Account Holders Will Use Mobile Banking By 2017. August 14, 2012.
http://techcrunch.com/2012/08/14/report-46-of-u-s-bank-account-holders-will-use-mobile-banking-by-2017/
    Study referenced in Lardinois story:
    http://www.forrester.com/The+State+Of+Mobile+Banking+2012/fulltext/-/E-RES75582
 

Tags: Mobile Banking, Online Services, Press Release, Technology
Will on 10/3/2012 at 6:00 PM
When can we expect you to offer remote deposit? A specific timeframe would be helpful instead of a generic "sometime in the near future" response.
Arvest Blog Admin on 10/4/2012 at 1:29 PM
Will, we're expecting the remote check deposit feature to be ready by the end of this year. Thanks for your question!

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