Digital Banking is Taking Hold: The State of Mobile and Online Banking in 2016

  • ID: 3947597
  • Report
  • Region: Global
  • 24 Pages
  • Mercator Advisory Group
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This Report Examines the Demand and Potential for Mobile and Online Banking Features

FEATURED COMPANIES

  • ACI Worldwide
  • CO-OP Financial Services
  • Digital Insight
  • First Data
  • Fiserv
  • Malauzai
  • MORE

With more than 70% of adults in the United States and more than 60% of adults in other countries and regions owning smartphones, an insatiable appetite for all things digital continues. This demand for mobility is present in the world of banking as well, as banking customers continue to embrace self-service methods, particularly online and mobile banking, to access their accounts and make various transactions.

In a new report, Digital Banking Is Taking Hold: The State of Mobile and Online Banking in 2016, the author presents a market overview and describes the deployment of mobile-centric digital banking platforms that not only include comprehensive banking apps, electronic bill payment (bill-pay), personal financial management (PFM) tools, mobile payments and mobile wallets, and mobile/ATM prestaging but also offer enhanced mobile web capabilities.

"The return on investment on digital banking solutions is clear, with typical transaction costs ranging from $0.25 to $0.50, vs. $3.00 to $4.00 per transaction at a teller. Actual costs can vary, depending on whether features are included in bundled packages to increase the overall share of wallet. "Households are using a wide variety of devices when banking, from computers to smartphones to phablets and tablets, depending on preference and the types of transaction or interaction desired," comments Ed O’Brien, author of the report.

Highlights of this report include:

  • Market overview of the evolving digital banking market
  • The author's Customer Monitor 2015 survey statistics on U.S. consumers’ use of smartphones and tablets and mobile banking
  • Features improving the customer experience in usage of digital banking products and solutions
  • The value of digital personal financial management (PFM) tools to financial institutions
  • Overview of digital banking vendors and products
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • ACI Worldwide
  • CO-OP Financial Services
  • Digital Insight
  • First Data
  • Fiserv
  • Malauzai
  • MORE

1. Executive Summary
Introduction

2. Market Overview
The Convergence of Online and Mobile Banking Has Begun
Both Online Web Access and Mobile Banking via Downloadable Apps Are Popular
The Maturation of Digital Banking
Smartphone Growth Continues
Mobile Banking Has Become a Preferred Way of Communicating with FIs
Responsive Design Improves the Customers’ Digital Banking Experience

3. Expanded Digital Banking Capabilities
Bill-Pay
Increased Interest in Reviewing Personal Finances
Biometrics
Deployment of Digital Banking
Security Considerations: Updated FFIEC Guidance Recently Published

4. An Overview of Select Digital Banking Vendors and Products
ACI Worldwide
FIS Mobile Banking
Fiserv Mobile Solutions
Malauzai

5. Conclusions and Strategic Implications
Endnotes

List of Figures

Figure 1: Digital Banking Is Taking Hold
Figure 2: Roughly Half of U.S. Banking Customers Who Use Mobile Banking Do So via Their FIs’ Website and Half via a Downloadable App from the FI
Figure 3: The Accelerated Pace of Adoption of Digital Banking Capabilities
Figure 4: 9 in 10 Young Adults and 8 in 10 Earning$75K+ in the U.S. Own Smartphones; Half as Many Own Tablets
Figure 5: U.S. Banking Customers Interest in Mobile Continues to Grow
Figure 6: Mobile Owners and Mobile Banking Users Are Using a Wider Variety of Branch and Self-Service Methods
Figure 7: Electronic Bill-Pay and Receipt Is Growing, but Growth Comes Mostly from Mobile Platforms
Figure 8: Rising Use of Personal Financial Review by U.S. Consumers, Especially by Smartphone
Figure 9: Rising Use of PFM by Young Adults, Affluent, Mobile Banking Users, and New Account Holders in the U.S.15
Figure 10: An Example of Using Eye Vein Patterns for User Authentication
Figure 11: Security Concerns Remain Top Inhibitor to Performing Mobile Transactions
Figure 12: Example of Using a Mobile Device to Prestage an ATM Withdrawal with FIS Cardless Cash
Figure 13: Fiserv’s Instant Balance Feature

List of Tables

Table 1: Common Digital Banking Features

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  • ACI Worldwide
  • Alkami
  • CO-OP Financial Services
  • D+H
  • Digital Insight
  • Euronet
  • FIS
  • First Data
  • Fiserv
  • Jack Henry
  • Malauzai
  • Meniga
  • Monitise
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