Financial Services
Security Concerns Impact Mobile Banking
Data from the “Mobile Payments and Online Shopping Survey” indicates that of the 29% of respondents who conduct mobile banking, the leading reason for doing so is convenience (51%) and increased security (25%). In fact, two-thirds of the consumers who use mobile banking feel completely or partially protected. However, 51% of those who do not engage in mobile banking say it is because of diminished security.
Overall, 51% of respondents believe the fraud risk is the same on a smartphone, tablet, desktop, and laptop computer. Only 19% say fraud risk is higher on a smartphone or tablet than on a desktop or laptop computer, while almost 1 in 3 consumers believe fraud risk to be lower on a smartphone or tablet. These figures differ from results of a National Cyber Security Alliance (NCSA) and McAfee study released in November 2011, which found that 51% of US consumers feel safest accessing the internet with a desktop or laptop, while just 1 in 10 feel safest using their smartphone and only 4% using their tablet.
Why mobile is better than email
We get this question at Dark Matter constantly. And sometimes, depending on the situation, it can be hard to answer. But, here is an instance where the answer is actually quite straight forward. The reason mobile is better than email marketing is because people still have to think about it. Look at the attached email from Citi. See how impersonal this email is and how loaded with tracking gibberish. We are all being constantly bombarded with email marketing like this, which should not serve as the model for mobile marketing. The highly impersonal nature of email marketing, often sent based on the decision of a marketing bot, is seldom based on relevance, but instead on predetermined, i.e., old information. Mobile demands more of marketers. To run successful mobile campaigns, marketers must use their marketing instincts and not rely solely on the output of a pre-existing recommendation engine. This crucial ingredient, the involvement of the actual marketer, is the key to relevancy. And relevancy is the life blood of mobile.
Big Banks Face Trust Deficit
Credit Union members (74%) are 3 times as likely as customers of Bank of America (25%) to experience a trustworthy relationship with their institution, according to a Harris Poll released in November 2011. Data from the survey indicates that 33% of JP Morgan Chase customers rate their bank as either excellent or very good at ensuring a trustworthy relationship with them, while 37% of Wells Fargo / Wachovia customers feel the same way. And while 12% of Bank of America customers feel that the bank does a poor job of ensuring a trustworthy relationship with them, not a single Credit Union member feels likewise. Overall, 45% of customers who use a bank rather than a Credit Union are satisfied with their institution’s trustworthiness.
Credit Union Members Feel the Love
The pattern holds when examining how customers rate “Big Banks” – defined as Bank of America, JP Morgan Chase, and Wells Fargo / Wachovia – at valuing them as customers: Credit Union members (72%) are again three times as likely as Bank of America customers (24%) to feel valued. In fact, just 5% of Bank of America customers rate the institution as excellent in that regard, compared to 33% of Credit Union members. And while JP Morgan Chase (12%) and Well Fargo / Wachovia (11%) fare slightly better than Bank of America at being rated as excellent, they remain significantly behind Credit Unions and banks as a whole (20%).
Bank Customers Can’t Get No Satisfaction
Just 44% of bank customers overall feel very or extremely satisfied with their bank, compared to 73% of Credit Union members. Bank of America again rates lowest, with more customers not at all satisfied (10%) than extremely satisfied (6%).
Credit Union Members Most Loyal
Big Bank customers’ lack of satisfaction is clearly having an effect on their loyalties: while 87% of Credit Union members are extremely (61%) or very likely (26%) to continue using them, only 40% of Bank of America customers, 46% of JP Morgan Chase’s customers, and 54% of Wells Fargo / Wachovia’s customers feel the same way. Overall, 58% of customers who use a bank rather than a Credit Union feel that they are extremely (34%) or very likely (24%) to continue using their bank.
JD Power: Retail Banking Sentiment Reverses Slide
Consumer sentiment toward retail banks appeared to have reversed its historical downward slide in the early part of 2011, increasing for the first time since 2007, according to a J.D. Power and Associates retail banking satisfaction study released in May 2011. The study found that retail banking customer satisfaction improved by four index points from 2010 to an average of 752 (on a 1,000 point scale) in 2011.
Why Behavioral Targeting is the Future of Mobile Marketing
While behavioral targeting is nothing new in the online world, it’s still something of a novelty for mobile. Mostly because we still lack the scale, tehcnology and inventory to do this effectively. However, the growing trend of using behavioral targeting techniques continues to gain traction across the entire spectrum of mobile, not just advertising. Simple demographic profiling, which is how media is traditionally purchased, seems flat and one dimensional when looking at mobile users. Take the retail sector for instance. In our experience, retailers don’t care so much that their target may be men 25-34, they care about why they walk into a store, scan a product with a barcode scanning app and then buy the product in the store itself. That type of behavioral understanding, which addresses the “why” vs. “who” approach to shoppers is the core of why behavioral targeting so effective.
Mobile a key factor in consumer banking: study
A new study found that mobile is now a factor when consumers are choosing banks.
Key Highlights:
The study found that of those consumers who switched banks this year, 39 percent of participants said that mobile was not an important factor in their banking decision – compared to 75 percent of participants who said that mobile was not important to them last year.
The study showed that the percentage of users has decreased by 36 percent – initially 75 percent and now down to 39 percent – which shows that more consumers are banking on mobile.
A key theme from this year’s findings show that people who use mobile banking platforms are more likely to stay at their bank.
The data shows an increase in consumer behavior with banks that are aggressive with communicating their mobile efforts and banks that have mobile capabilities but aren’t advertising it. It’s not enough to just have mobile if nobody knows you have it. You have to talk it through.
Mobile Wallets are all about the data, not the transaction
While there was much excitement over the idea of being able to pay for things by simply touching a smartphone to a payment terminal, the real value of the mobile wallets is not about the transaction at all, at least not for Google. What the Mountain View mobile giant is really banking on is the vast amount of shopper data that will produced as a result. Essentially, Google knows that transactional data will generate a ton of shopper behavior, which can be leveraged and sold many ways. With this data being real-time, Google would be able to make the information available instantly to retailers, which would allow them to offer shoppers real-time incentives based on their purchasing behavior. And since the mobile wallet doesn’t just hold virtual cash, but also mobile loyalty cards and coupons, everything would instantly be available for the shoppers.
For people that don’t have a Google phone with NFC technology built in, they can add an NFC sticker that goes on the back of the phone, download the Google shopper app and they’re good to go.
Banks team up to allow easy transfer of money using only a customer’s phone number
It seems that Bank of America, JPMorgan Chase and Wells Fargo have formed a new venture called clearXchange in the realm of digital payments. According to them, customer of those banks will now be able to transfer money more conveniently and safely using a mobile number or email address. Seems like this is the exact type of thing that digital banks like ING, FNBO Direct, Ally and eTrade should have figured out a long time ago. Read more.
