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Mobile Banking in Australia: Sizing the Market Opportunity Product Image

Mobile Banking in Australia: Sizing the Market Opportunity

  • ID: 2375830
  • December 2012
  • Region: Australia
  • Datamonitor

FEATURED COMPANIES

  • Apple Inc.
  • ASB Bank Limited
  • Shanks Group plc
  • MORE

There a number of benefits of moving towards a targeted mobile banking strategy, including aiding customer retention and acquisition. It is possible to segment consumers based on their use of and attitudes towards the mobile channel, and to create distinct strategies for each segment aimed at encouraging their use of mobile and maximizing the benefits from this shift in channel use.

Scope

- Discover how big the mobile banking market in Australia is, and how much it will grow in 2013.

- Understand how the Australian market is segmented with respect to users and non-users of mobile banking.

- Learn what strategies will provide most effective in increasing levels of acquisition, loyalty, and profitability for each segment.

Highlights

- According to Datamonitor's market modeling 4.9 million Australians have already joined the mobile banking market over the last couple of years. The vast majority of these consumers are drawn from Australia's ample smartphone owner base, although not all due to the growing presence of tablet computers.

- The swift evolution of mobile banking means that it is fast becoming a "hygiene" factor, something that consumers will demand as a matter of course. Providers can no longer assume that the provision of basic banking services via mobile will be sufficient to win them credit in the eyes of their customers, as it may have done as recently as 2010.

Reasons to Purchase

- How many Australian consumers currently use mobile banking, and how many will do so in 12 months' time?

- What strategies can your organization employ to maximize the potential of the mobile channel?

- How can you use mobile to improve acquisition and loyalty rates, and boost revenues and profits?

Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Apple Inc.
  • ASB Bank Limited
  • Shanks Group plc
  • MORE

OVERVIEW

- Catalyst
- Summary
- Methodology

SIZING THE MARKET OPPORTUNITY

- Introducing the opportunity
- Mobile banking already spans the Australian population
- Almost 5 million Australians already use the mobile banking channel
- To make sense of the current mobile banking scene, Datamonitor has further segmented the market
- A relatively consolidated banking and smartphone market have made it easier to extend mobile banking
- Mutuals are beginning to join the market, extending coverage across the spectrum of authorized deposit-taking institutions
- The mobile banking market has the potential to become the main channel that a client uses to interact with their bank
- Mobile banking has quickly emerged as the most frequent way to keep up to date on balances
- Consumers increasingly view mobile as an essential channel
- The provision of mobile banking services is advancing rapidly
- A targeted mobile strategy can bring a number of key benefits to providers
- Mobile will encourage greater engagement between banks and their customers
- Mobile banking will reach a wider audience than online banking, making it important to decouple the two
- Non-digital channels will be freed up for more value-added activities
- Banks will need to deal with fraud quickly and effectively to reduce brand damage
- Soft benefits to bank brands are real if less tangible benefits of mobile banking
- The shift to mobile will allow banks to cut their operating costs……but only to a certain extent
- Mobile will allow consumers extra options for dealing with their providers
- Banking apps can provide banks with concrete benefits at all stages of mobile evolution
- Banks can directly track the return from a banking app on both sides of the balance sheet
- Mobile has become another differentiator between providers' offerings
- Mobile banking offers access to previously unreachable customers
- Time pressures on consumers increase the appeal of the mobile channel
- Mobile has the potential to overtake the online channel in banking
- Small screens create a new challenge for marketers, which must optimize content for this channel
- Mobile allows consumers to react quickly
- Mobile users are a captive audience
- Location-sensitive information offers additional depth to the mobile channel

MAXIMIZING THE OPPORTUNITY

- The target consumer groups for mobile banking are the young and affluent but it can expand
- The under 35s are embracing the platform but they need not be the only growth market
- Affluent and high-income clients are increasingly interacting with banks via mobile apps
- Regionally, the more densely populated eastern seaboard is a more fertile market for mobile banking
- Niche apps are a great way to reach out to homebuyers but other life events need to be considered
- Property apps have blazed the way in delivering real customer benefits through the mobile channel
- Mobile app functionality needs to fulfill two key requirements to drive downloads and usage
- The current market dynamics can see mobile banking use rise to 5.4 million within the year
- The market is forecast to grow dramatically as more smartphone users take up apps
- Addressing security concerns alone could attract 2.5 million new mobile banking app users
- Tailored functionality is key in driving mobile usage but so is the fun factor
- Banks need to tackle issues regarding functionality, perception, and marketing simultaneously
- Innovators need mobile banking to stay new and interesting, requiring product innovation
- Increasing app usage means reaching out to early adopters with functionality that they appreciate
- Widening the base by attracting mainstream consumers
- Laggards will need to be prompted to use mobile banking
- Refusniks are best approached indirectly and require a two-stage process
- Giving away a mobile device is not attractive to drive mobile banking but financing it may be
- What will the market look like once mobile banking is commonplace
- Out-of-the-ordinary features will add immense value to the mobile channel
- Multiple banking apps will be required as the mobile banking market matures
- Smaller bank players will be able to compete more effectively against the majors
- Branches will offer technical support in addition to financial advice
- Banking will be more proactive as location-based services can push products as they are required
- Savings products will have more money in them for longer over the course of the month
- Mobile banking will be another way for banks to reduce the time it takes to rollout mobile payments

APPENDIX
- Definitions
- App
- Personal finance management
- Remote deposit capture
- Smartphone
- Additional data
- Methodology
- Secondary sources
- Further reading
- Ask the analyst
- Disclaimer

TABLES

- Table: Bank mobile banking app reviews and ratings by competitor, November 2012
- Table: Mutual mobile banking app reviews and ratings by competitor, November 2012
- Table: Datamonitor's mobile banking segmentation model by country 2012
- Table: Smartphone penetration and forecasts by country, 2011–13f,
- Table: Income bands included in the mobile banking dashboard

FIGURES

- Figure: The Australian mobile banking market has already transitioned towards apps
- Figure: Datamonitor's mobile banking segments are defined by usage and attitudinal characteristics
- Figure: Australia's mobile banking penetration is comparable to the US but ahead of the UK
- Figure: Smartphones are more common in Australia than almost anywhere else in the world
- Figure: Consumers have rapidly taken to the latest mobile communications devices
- Figure: Australians are using mobile devices to keep tabs on their finances first and foremost
- Figure: Australian mobile Internet use is still most common at home but is increasingly used by those on the go
- Figure: By 2015, consumers will conduct most day-to-day banking activities via mobile devices
- Figure: Migration to mobile channels offers huge opportunities for reducing operating costs
- Figure: Mobile banking consumers are high frequency bankers
- Figure: Mobile banking evolves in three different stages, each bringing additional benefits
- Figure: Mobile banking offers far more on the revenue-generating side of the business than the cost-minimizing side
- Figure: The age distribution of mobile banking in Australia makes it an ideal through which to reach out to the underbanked among 18–24 year olds
- Figure: Australia's age distribution of mobile banking is not necessarily set in stone
- Figure: Mobile banking has fast become an important platform for servicing the higher end of the Australian retail banking market
- Figure: South Korean consumers have remarkably consistent mobile banking penetration across income groups, suggesting that penetration rates can even out in Australia as well
- Figure: Victorians are the most engaged with mobile banking in Australia
- Figure: Mobile banking has appealed mainly to consumer groups with financial needs split between credit and managing assets
- Figure: The market will add at least half a million consumers over the next year
- Figure: Security concerns are the biggest threat to the mobile banking channel
- Figure: Australian mobile marketing strategy based on mobile segmentation
- Figure: Innovators are from all walks of life, united only by their openness to new technology
- Figure: Increasing usage among the early adopters requires time-saving features and a relentless focus on convenience
- Figure: Back to banking after the X-Factor, where was I?
- Figure: Mainstream consumers are the most typical consumers
- Figure: Security is the chief barrier to adoption but not all smartphone users are ready to use apps
- Figure: Not the most desirable clients, but that could easily change
- Figure: Laggards need to be convinced to overcome their aversion to the new
- Figure: Refusniks will not easily be converted into mobile banking users, short of banks giving away smartphones and tablets
- Figure: Services that will only be used occasionally have the greatest potential to improve the banking relationship

Note: Product cover images may vary from those shown

- Apple Inc.
- ASB Bank Limited
- National Australia Bank Group Limited
- Research In Motion Limited
- Royal Bank of Scotland Group PLC
- Shanks Group plc

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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