Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Consumer survey data
- Abbreviations and terms
- Terms
- Companies mentioned in this report:
Executive Summary
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- Online banking—industry overview
- Mobile banking—industry overview
- Competitive context—mobile payments
- Innovations and innovators
- Marketing strategies
- The consumer
Insights and Opportunities
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- Lack of internet access, smartphones stymie mobile banking growth
- Don’t ignore offline customers as mobile banking users
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- Figure 1: Cost per transaction, by banking channel, November 2009
- Mobile banking may be route to unbanked consumers
- Hispanics have taken to mobile banking more than others
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- Figure 2: Types of banking activities conducted on mobile phones—Hispanics vs. non-Hispanics, July/August 2010
Inspire Insights
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- Text Me and I’ll Save More
- What’s it about?
- Implications
Market Size—Online Banking
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- Key points
- Some 80% of U.S. households use online banking services
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- Figure 3: Percentage of population using online banking and bill payment, 2010
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- Figure 4: Growth in internet use and online banking and bill pay, 2000-10
- Bill payment methods change dramatically
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- Figure 5: Methods used for bill payments, 2010
- Figure 6: Methods used for bill payments, 2000
- Number of online bill payments jumps 50%
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- Figure 7: Total transaction volume for online bill payments, 2000 versus 2010
- Banks need to get online customers to do more
Market Size—Mobile Banking
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- Key points
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- Figure 8: Smartphone users who use mobile banking, 2009 and 2010
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- Figure 9: Percent of customers who expect to bank by phone in the near future, July 2010
- Bank of America customers are most active phone users
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- Figure 10: Percentage of customers at major banks who bank by phone, July 2010
Segment Performance—Online and Mobile Banking
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- Key points
- Online banking is the preferred method
- Mobile banking hasn’t caught on yet
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- Figure 11: Preferred banking channel, 2009 and 2010
Market Drivers—Mobile Banking
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- Key points
- Switch to smartphones will drive more mobile banking
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- Figure 12: Projected share for smartphones vs. feature phones, Q2 2008-Q2 2011
- Weak economy, consumer finances also drive mobile banking use
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- Figure 13: Number of online households using each payment method, in millions, January 2010
Competitive Context—Mobile Payments
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- Key points
- Mobile payments triple in U.S. in 2009, but lag behind other countries
- Replacing cash, not plastic
- Demand-side issues: The chicken and egg problem
- Supplyside issues: The search for a mobile payment standard
- Who pays for all this?
Leading Companies
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- Key points
- Bank of America
- JPMorgan Chase
- Citigroup
- Wells Fargo
- U.S. Bank
- PNC Financial Services
- SunTrust
- Capital One
- USAA
- TD Bank
- BBVA Compass
- Online-only banks
- ING Direct
- Discover Bank
- American Express
- Ally Bank
- Charles Schwab Bank
- E-LOAN
- E*TRADE
- SmartyPig
- PayPal
Innovation and Innovators
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- Key points
- First Data gears up to offer E-wallets in U.S., Canada and Mexico
- Mobile giants team with banks to develop smartphones for payments
- Citigroup tests shopping app tied to its credit cards
- Cimbal launches barcode mobile payment system
- Startup offers individualized 3D barcodes for mobile advertisers
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- Figure 14: Example of a 3D “Bar Page Cube” from Bar Pages
- Shopkick app transmits rewards, discounts to in-store mobile users
- Deposit@Mobile and Auto Circle from USAA
- Quick Deposit and QuickPay from JPMorgan Chase
- Quick Payment by Bank of America
- BBVA Compass Alliance with SmartyPig
- Paperless ATM receipts from Wells Fargo
- Cloud Computing for Mortgage Originations
Marketing Strategies
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- Key points
- Notable direct mail, print and email advertising
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- Figure 15: Bank of the West direct mail ad, August 2010
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- Figure 16: Regions Bank email ad, May 2010
- Figure 17: PNC acquisition direct mail ad, August 2010
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- Figure 18: ING acquisition direct mail ad, September 2010
- Figure 19: SunTrust Bank direct mail ad, April 2010
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- Figure 20: Harris Bank direct mail ad, April 2010
- Figure 21: BBVA Compass direct mail ad, March 2010
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- Figure 22: Bank of America direct mail ad, January 2010
- Figure 23: Citizens RBS direct mail ad, August 2010
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- Figure 24: Banco Popular direct mail ad, September 2010
- Television advertising
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- Figure 25: Bank of America, February 2010
- Figure 26: Bank of America, January 2010
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- Figure 27: Bank of America, October 2009
- Figure 28: JPMorgan Chase, April 2010
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- Figure 29: JPMorgan Chase, July 2010
- Figure 30: PNC Bank, July 2010
The Consumer
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- Checking balances is most common online activity; bill pay ranks third
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- Figure 31: Types of banking activities conducted online, by gender, July/August 2010
- Age and online banking
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- Figure 32: Types of banking activities conducted online, by age, July/August 2010
- Online banking and income
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- Figure 33: Types of banking activities conducted online, by household income, July/August 2010
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- Figure 34: Types of banking activities conducted online, by gender and household income, July/August 2010
- Asians are the most frequent online bankers
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- Figure 35: Types of banking activities conducted online, by race/Hispanic origin, July/August 2010
- Interest in online banking varies by region
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- Figure 36: Types of banking activities conducted online, by census region, July/August 2010
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- Figure 37: Types of banking activities conducted online, by area, July/August 2010
- Frequency of visits to online banking websites
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- Figure 38: Frequency of visits to banking websites, by gender and age, June 2010
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- Figure 39: Frequency of visits to banking websites, by household income, June 2010
- Proportion of bills paid online by all bill payers
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- Figure 40: Proportion of bills paid online, by gender and age, June 2010
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- Figure 41: Proportion of bills paid online, by household income, June 2010
- Online security is still an issue for many
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- Figure 42: Reasons for not conducting internet banking activities, by gender, July/August 2010
- Online banking and age
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- Figure 43: Reasons for not conducting internet banking activities, by age, July/August 2010
- Lack of internet access hinders mobile banking adoption
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- Figure 44: Reasons for not conducting mobile banking activities, by gender, July/August 2010
- Mobile banking and age
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- Figure 45: Reasons for not conducting mobile banking activities, by age, July/August 2010
- Mobile banking and income
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- Figure 46: Reasons for not conducting mobile banking activities, by household income, July/August 2010
- Mobile banking and race/Hispanic origin
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- Figure 47: Reasons for not conducting mobile banking activities, by race/Hispanic origin, July/August 2010
- Younger cohorts, Asians, and Hispanics are most eager to use mobile
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- Figure 48: Types of mobile banking activities conducted, by gender, July/August 2010
- Younger people more eager to embrace mobile banking
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- Figure 49: Types of mobile banking activities conducted, by age, July/August 2010
- Higher-income consumers more apt to use mobile banking
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- Figure 50: Types of mobile banking activities conducted, by household income, July/August 2010
- Blacks, Asians take to mobile banking faster
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- Figure 51: Types of mobile banking activities conducted, by race/Hispanic origin, July/August 2010
- Urban dwellers outpace rural residents in mobile
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- Figure 52: Types of mobile banking activities conducted, by area, July/August 2010
- Consumers want free bill payment and checking with internet banking
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- Figure 53: Most desirable features of online banking services, by gender, July/August 2010
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- Figure 54: Most desirable features of online banking services, by age, July/August 2010
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- Figure 55: Most desirable features of online banking services, by household income, July/August 2010
- Bank visits increase with income, higher number for some races/ethnicities
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- Figure 56: Average number of visits per month to branch or CSR, by gender, July/August 2010
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- Figure 57: Frequency of visits to bank branch or CSR, by gender, July/August 2010
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- Figure 58: Frequency of visits to a bank branch or CSR, by age, July/August 2010
- Higher-income consumers make most bank visits
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- Figure 59: Average number of visits per month to branch or CSR, by household income, July/August 2010
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- Figure 60: Frequency of visits to a bank branch or CSR, by household income, July/August 2010
- Blacks favor branch visits over whites
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- Figure 61: Average number of visits per month to branch or CSR, by race/Hispanic origin, July/August 2010
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- Figure 62: Frequency of visits to bank branch, by race/Hispanic origin, July/August 2010
- Northeasterners are heaviest branch visitors
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- Figure 63: Average number of visits per month to branch or CSR, by census region, July/August 2010
- ATM usage varies widely by gender, age, income and race
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- Figure 64: Frequency of visiting an automated teller machine, by gender, July/August 2010
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- Figure 65: Frequency of visiting an automated teller machine, by gender, July/August 2010
- ATM visits decline with age
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- Figure 66: Frequency of visiting an automated teller machine, by age, July/August 2010
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- Figure 67: Frequency of visiting an automated teller machine, by age, July/August 2010
- Higher-income consumers, especially men, make most ATM visits
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- Figure 68: Frequency of visiting an automated teller machine, by household income, July/August 2010
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- Figure 69: Frequency of visiting an automated teller machine, by household income, July/August 2010
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- Figure 70: Frequency of visiting an automated teller machine, by gender and household income, July/August 2010
- Blacks are most frequent ATM users
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- Figure 71: Frequency of visiting an automated teller machine, by race/Hispanic origin, July/August 2010
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- Figure 72: Frequency of visiting an automated teller machine, by race/Hispanic origin, July/August 2010
- Coastal, urban dwellers make most ATM visits
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- Figure 73: Frequency of visiting an automated teller machine, by census region, July/August 2010
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- Figure 74: Frequency of visiting an automated teller machine, by census region, July/August 2010
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- Figure 75: Frequency of visiting an automated teller machine, by area, July/August 2010
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- Figure 76: Frequency of visiting an automated teller machine, by area, July/August 2010
- Income indicates where consumers bank
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- Figure 77: Type of institution for online bank account, by gender, July/August 2010
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- Figure 78: Type of institution for online bank account, by age, July/August 2010
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- Figure 79: Type of institution for online bank account, by household income, July/August 2010
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- Figure 80: Type of institution for online bank account, by gender and household income, July/August 2010
- E-bills—what consumers think
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- Figure 81: Familiarity with e-bills, by gender and age, June 2010
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- Figure 82: Bank offers e-bills, by gender and age, June 2010
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- Figure 83: Usage of e-bills, by gender and age, June 2010
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- Figure 84: Reasons for not using e-bills, by gender and age, June 2010
Cluster Analysis, Part 1
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- Mobiles
- Demographics
- Characteristics
- Opportunity
- Computerizers
- Demographics
- Characteristics
- Opportunity
- Potentials
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 85: Online and mobile banking clusters, July/August 2010
- Figure 86: Banking activities conducted online on a computer, by online and mobile banking clusters, July/August 2010
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- Figure 87: Banking activities conducted online on a mobile phone, by online and mobile banking clusters, July/August 2010
- Figure 88: Desired features for online banking, by online and mobile banking clusters, July/August 2010
- Cluster demographics
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- Figure 89: Online and mobile banking clusters, by gender, July/August 2010
- Figure 90: Online and mobile banking clusters, by age, July/August 2010
- Figure 91: Online and mobile banking clusters, by household income, July/August 2010
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- Figure 92: Online and mobile banking clusters, by race/Hispanic origin, July/August 2010
- Figure 93: Online and mobile banking clusters, by Hispanic origin, July/August 2010
- Cluster methodology
Cluster Analysis, Part 2
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- Dabblers
- Demographics
- Characteristics
- Opportunity
- The Unconcerned
- Demographics
- Characteristics
- Opportunity
- Privatizers
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 94: Online financial marketing clusters, July/August 2010
- Figure 95: Advantages to using the internet for investment research, by online financial marketing clusters, July/August 2010
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- Figure 96: Disadvantages to using the internet for investment research, by online financial marketing clusters, July/August 2010
- Figure 97: Important features when purchasing financial products online, by online financial marketing clusters, July/August 2010
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- Figure 98: Changes that financial companies can make to help respondents feel more secure about their purchase, by online financial marketing clusters, July/August 2010
- Cluster demographics
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- Figure 99: Online financial marketing clusters, by gender, July/August 2010
- Figure 100: Online financial marketing clusters, by age, July/August 2010
- Figure 101: Online financial marketing clusters, by household income, July/August 2010
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- Figure 102: Online financial marketing clusters, by race, July/August 2010
- Figure 103: Online financial marketing clusters, by Hispanic origin, July/August 2010
- Cluster methodology
Appendix: Trade Associations
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