2. What You’ll Gain From This White Paper
This white paper provides an update of mobile financial service (FS) trends that
occurred during Q2 2011. We aim to provide you with a clear sense of what
is currently going on in the mobile money landscape by examining key metrics
– derived from Compete’s panel of two million consumers – to evaluate and
benchmark how the industry is performing.
This paper is complemented by four other papers on financial service sub-industries:
Mobile Banking, Mobile Credit Cards, Mobile Investing, and Mobile Auto Insurance.
The data enclosed comes from Compete’s Mobile FS Intelligence Survey, our quarterly
survey of approximately 1,200 consumers to understand qualitative sentiment on a
variety of topics related to the mobile channel.
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3. Mobile Money
Where Mobile Adoption in Financial Services Stands Today
In Q2 2011, 36% of financial service account owners (bank, credit card, brokerage,
or auto insurance) were using a mobile device (Smartphone or tablet) to manage
their accounts or conduct financial transactions. Mobile money adoption is most
prevalent in banking (checking and/or savings) and least prevalent in auto insurance.
54% of bank account owners used their phone or tablet to manage their checking or
savings account and make transactions. The next highest adoption rate in financial
services is among credit card owners with 36% of card owners using their mobile
device to manage their account or make transactions. In brokerage, 28% of account
owners use investment mobile services and just 17% of auto insurance consumers
manage their policy with their mobile device.
Looking at the mobile clickstream data, we see this same pattern across sub-industries.
In June 2011, Bank of America and Chase both saw 1.8 million unique visitors
access their websites making them the highest-trafficked financial services sites on
mobile devices. Capital One and Wells Fargo both saw 1.5 million unique visitors
access their sites in June. After these four companies, mobile use drops significantly
among other financial service firms with the next highest visited site, HSBC, seeing
only 500 thousand unique visitors in June.
Current Use of Mobile Services by Sub-industry
(FS Account Owners, Q2 2011)
Mobile Service Adoption Overall use of
is Highest in Banking Mobile Money
Services
Adoption rates across financial
36%
services vary significantly with
banking and credit cards – the two
most connected to the in-store
shopping process – leading the way
Mobile Mobile Mobile Mobile
Banking Credit Card Investing Auto Insurance
54% 36% 28% 17%
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4. Current Awareness of Mobile Money Services
Of key financial services available on mobile devices, financial service consumers
are most familiar with mobile bill pay with 2 out of 3 of all consumers reporting they
are familiar with or currently using the service. 55% of consumers are familiar with
or currently using mobile couponing (e.g., redeem coupons, via mobile device),
which had the second highest awareness rate among financial product owners.
Consumers are much less aware of other mobile services like mobile tickets, which
less than half (45%) of consumers were aware of. The least familiar service is mobile
tap and pay (e.g., pay for goods in retail store with mobile device instead of credit
or debit card) with 2 out of 3 consumers indicating that they “had never heard of”
or “know little about” the service. With the introduction of Google Wallet in May
2011 and Google’s subsequent purchase of Motorola in August, we expect that
awareness of this service will increase in the next quarter.
Familiar with Mobile Services (blue)
Likely to Use in Next 3 Months (green)
(FS Account Owners, Q2 2011)
Product Owners are Hesitant
About the Mobile Wallet,
But for Different Reasons 11%
19%
14%
Examine adoption barriers 12%
in sub-industries individually
rather than in aggregate
because reasons for not
adopting vary by context
Bill Pay Couponing Ticketing Tap & Pay
68% 55% 45% 38%
Current Likelihood of Adoption of Mobile Money Services
Well over half of bank account owners said they are not likely to use banking-specific
mobile services in the next three months. An even larger share of credit card and
brokerage owners (over two-thirds) say they are not likely to use credit card or
investment-specific mobile services in the next three months.
When looking at specific sub-industries, there are noticeably different barriers for
mobile service adoption. For example, when asked about general bank account
management services, including viewing account balances and scheduling bill
payments, the most common reason for not adopting bank account mobile services
was slow wireless connection (52%). This reason surpassed lack of need and
security concerns, which are the top barriers to adoption generally reported.
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5. Frequency of Use of Mobile Money Services
Although current use of and intended adoption rates for mobile services are low,
once consumers adopt mobile financial or money services and start using their
phone as a mobile wallet, they use the services frequently. 16% of consumers
using mobile tap and pay do so daily, and another 36% use it weekly. A full 87%
of consumers who use mobile couponing do so at least once a month.
Frequency of Use of Mobile Tap & Pay and Couponing
(FS Account Owners, Q2 2011)
Mobile Wallet is Sticky
A full 87% of consumers
using mobile couponing do
so at least once a month
Daily Weekly Monthly Daily Weekly Monthly
16% 51% 71% 5% 45% 87%
Tap & Pay Couponing
Smartphone Owners Have a Strong Preference for Apps
70% of Smartphone owners who use mobile tap and pay
do so with an app, like the Starbucks card mobile app.
Similarly, 62% of Smartphone owners who make money
transfers do so with an app.
Over half of all mobile wallet transactions surveyed were
conducted with an app as opposed to a Web browser or
SMS. 38% of consumers are using a browser to pay bills
with mobile devices, and 25% of consumers used SMS to
receive mobile coupons.
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6. Ads Go Unnoticed on Mobile Devices,
yet When They are Noticed, Clickthrough is High
77% of FS consumers don’t recall seeing an ad for a financial services company
on their mobile device. Thus, a first concern for FS marketers is simply getting
noticed. 19% of consumers who saw an ad on their mobile device clicked on it.
The top reason for clicking on the ad was to learn more about the advertised
financial product. Reasons for not clicking on an ad after noticing it included not
paying attention to ads in general (46%) and not seeing ads of interest (44%).
While a larger share of tablet owners notices ads (44% vs. 21%), the click rates
for both tablet and Smartphone owners are similarly reported at 18% and 21% –
good news, demonstrating that mobile ad performance is significantly higher than
desktop performance.
Have You Ever Seen an Ad for a Financial
Service Company on Your Mobile Device?
no (FS Account Owners, Q2 2011)
%
77
Mobile Ads Have
High Clickthrough Rate yes Have You Clicked on a Financial
1 in 5 consumers clicked on FS ad to
23% Services Ad in the Past 3 Months?
(FS Account Owners, Q2 2011)
learn more about a financial product
yes
no 19%
81%
Ads Seen While Using a Financial App Have Most Positive Impact
on Consumer’s Perception of the Company
Consumers rarely see ads while using financial apps; however, ads seen while using
a financial app have most positive impact on consumer’s perception of the company.
48% of consumers indicated that seeing an ad while using a financial application had
a favorable impact on their perception of the company versus 33% of consumers
who indicated that seeing an ad while browsing the Internet had a favorable impact
on their perception of the company. Ads paired with mobile apps should be viewed
as an opportunity for financial service marketers.
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7. Mobile Money
Key Findings:
• Banking industry has the highest rate of mobile service adoption in financial
industries, much higher than credit cards, brokerage and auto insurance.
• Awareness of mobile services is high, but likelihood to adopt in next
3 months is low.
• Mobile wallet services are sticky – once consumers adopt services and
technologies they use them frequently.
• Clickthrough rate on mobile financial service ads at 19% is much higher than
desktop performance.
The Last Word…
Implications and Recommendations for FS Mobile Marketers
• FS mobile marketers need tailored messaging for sub-industry product owners
due to their different attitudes and behaviors. For example, banking marketers
must focus messaging on security, while credit card marketers need a greater
emphasis on a use case.
• Bridge the gap between awareness and adoption. Feature and promote mobile
money services more prominently on Web properties and rollout video, ads,
and other online content to boost awareness levels for key mobile services.
• Drive adoption by creating relevance and urgency with mobile offerings. This
can be done by linking unique offers to in the mobile channel and providing
enough incentive to get consumers to try out services. Use existing offline and
online channels to promote benefits of cross-channel adoption.
• Address the number one barrier for mobile adoption – slow wireless connection.
To the extent possible, marketers should develop content and partnerships to
help consumers understand causes and fixes for slow wireless.
• Link ads to apps. Consumers are open to seeing relevant ads within financial
services apps, which have a positive impact on consumer’s perception of FS
companies. Mobile ads have a higher clickthrough rate than desktop ads, but
they must be more noticeable.
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8. About Compete
Founded in 2000, and part of WPP/Kantar since 2008, Compete is passionate
about understanding consumers to inspire great marketing. We draw our data
from the industry’s largest integrated online consumer behavior and survey panel,
comprised of over 2 million opt-in participants. Compete has extensive expertise in
the automotive, consumer goods, financial services, media, mobile, online, retail,
telecom and travel markets. Strategic partnerships with the WPP/Kantar family of
companies enable marketing optimization and a more holistic view of consumers.
About Kantar Media
Established in more than 50 countries, Kantar Media helps clients master the world’s
multimedia momentum through analysis of print, radio, TV, internet, cinema, mobile,
social media, and outdoor worldwide. Kantar Media offers a full range of media
insights and audience measurement services. Kantar Media expertise includes
audience measurement, advertising expenditure, media evaluation, single source
market research, online analytics and social media listening. Drawing upon the
deepest expertise in the industry, Kantar Media tracks more than 3 million brands
and delivers insight to more than 22,000 customers worldwide.
Learn More
For more information about Compete’s role in advancing the online marketing
effectiveness in financial services, please contact:
Jennifer Johnston Canfield Michael Perlman
Senior Associate, Managing Director,
Financial Services Practice Financial Services Practice
jcanfield@compete.com mperlman@compete.com
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