JACKSONVILLE, Fla., April 5, 2011 – In a recent mobile banking research study commissioned by FIS™ (NYSE: FIS), the world’s largest provider of banking and payments technology, results show that 50 percent of all smartphone owners used mobile banking within the last 30 days and that 76 percent of mobile banking users were satisfied with their experience – a 16 percentage point gain in satisfaction from 2010.
Conducted in February 2011, the online study surveyed a random sampling of 4,000 adults, split evenly by gender, who own mobile phones. Its purpose was to determine the impact of mobile devices on consumer behaviors related to financial transactions such as accessing accounts, paying bills, depositing checks and making purchases.
Results of the survey reflected the following trends in mobile banking adoption and satisfaction:
Mobile banking from smartphones nearly doubled in the past year, with 50 percent of all smartphone owners using mobile banking within the last 30 days. CTIA, the wireless industry association, reports there are 78 million smartphone subscribers in the U.S.
* Smartphone owners represent 76 percent of all mobile banking users while standard phones and Web-enabled devices made up the 24 percent balance of users.
* More than half (56 percent) of mobile banking users are members of the Gen Y demographic.
* Downloadable app mobile banking users represented the most satisfied segment of mobile users, with 88 percent satisfied with their primary bank’s mobile banking service, a 9 percent increase from 2010.
* Of consumers who had downloaded apps for their smartphones, 37 percent had downloaded banking applications – making banking apps among the most popular types of applications.
* The top 10 U.S. banks account for 52 percent of all mobile banking users.
Further data revealed the following consumer preferences:
* Fifty-seven percent of mobile banking users with smartphones expressed an interest in using remote deposit functionality, but only 7 percent of smartphone users are certain they have access to a remote deposit application for their bank.
* Smartphone mobile banking customers were three times more likely to use contactless or Near Field Communication payments than non-mobile banking customers.
* For those not using mobile banking, 38 percent preferred to access their accounts online through their computer, 28 percent cited security concerns as their reason for not adopting mobile banking, while 19 percent cited small screen size as a barrier.
The improvements in smartphones and the availability of downloadable mobile banking apps have helped fuel the interest in mobile banking. Apple iPhone, Google Android™ and RIM BlackBerry® smartphones provide ease of use for customers in a compelling experience wherever customers are throughout the day.
While mobile banking usage and satisfaction is on the rise, financial institutions are encouraged to accelerate the adoption of mobile. Creating awareness of the availability of mobile banking offerings is a key challenge for financial institutions. Of the respondents surveyed, nearly half did not know if their bank offered mobile banking. In addition, overcoming obstacles such as consumer wariness over security, adversity to fees associated with the service and simple disinterest will need to be addressed by financial institutions looking to grow their mobile banking presence.
Increasing mobile banking adoption is important for institutions that wish to attract and retain customers in the Gen Y and Millennial demographics. These customers tend to be more early adopters and therefore are not only more willing to try mobile banking via their smartphones, but also will likely be on the forefront of new services such as near field communication (NFC). With an NFC-enabled smartphone, users can tap or ”swipe” the phone at a check out instead of using a credit or debit card to perform a transaction at retailers and other point-of-sale locations.
“We are seeing mobile deployments by banks accelerating in 2011, with our clients growing mobile users by 35 percent monthly,” said Douglas Brown, senior vice president, FIS Mobile Financial Solutions. “The momentum is driven by unprecedented consumer demand.”
“The results of our research clearly indicate that the adoption of mobile banking in general, but particularly with smartphones, will continue to gain momentum,” said Anthony Jabbour, executive vice president, FIS Financial Solutions Group. “The survey shows that mobile banking users in all generational levels tended to have more in liquid assets, such as checking and savings accounts, CDs or money markets, which makes them desirable as customers to financial institutions. FIS has a proven track record and deep industry knowledge to assist financial institutions in determining how to use this mobile technology to their advantage and attract and retain valuable customers.”
FIS (NYSE: FIS) is the world’s largest global provider dedicated to banking and payments technologies. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 100 countries. Headquartered in Jacksonville, Fla., FIS employs more than 30,000 people worldwide and holds leadership positions in payment processing and banking solutions, providing software, services and outsourcing of the technology that drives financial institutions. FIS is a member of Standard & Poor’s 500® Index and consistently holds a leading ranking in the annual FinTech 100 list. For more information about FIS, visit www.fisglobal.com.
Forward-Looking Statements
This news release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form 10-K and other filings with the Securities and Exchange Commission.