New York, NY (PRWEB) October 30, 2013
American Banker’s Mobile Banking Intensity Index (MBII), a monthly measure of mobile banking deployment and adoption in the U.S., continues its expansion streak with an overall value reading in August of 69.8. Though slightly lower than July’s 71.8 composite figure, August’s overall index value demonstrates ongoing consumer uptake of mobile banking.
The index was developed by the Research unit of SourceMedia, a diversified provider of B2B news, analysis and marketing services and owner of American Banker, in partnership with Verizon.
HOW THE INDEX WORKS
The Mobile Banking Intensity Index is a diffusion index made up of 11 tracked components that summarize mobile banking activities, such as downloading bank applications, checking balances and transactions, transferring money and depositing checks.
Respondents are asked whether each indicator increased, decreased or had no change from the previous month. Responses do not include opinions, intentions or expectations, although bankers are given the opportunity to comment about market conditions.
Composite readings above 50 indicate an expansion of activity while readings below 50 point to contraction. The farther from 50 a reading is, the stronger the indicated change.
RECENT INDEX HIGHLIGHTS
The MBII’s August reading of 69.8 is a clear indicator that mobile banking is still experiencing significant adoption. Data is based on a survey of 299 banking professionals conducted in September, in which respondents were asked about the change in business conditions in August. (View article: http://www.americanbanker.com/issues/178_191/mobile-check-deposits-bill-payments-spike-in-august-1062553-1.html)
The MBII highlighted particular momentum in the area of remote bill payments and check deposits. In August, the index component value for customers using a mobile device to make a bill payment was 76.4, compared to 75.5 the previous month. Banks also reported higher volume among customers depositing a check to their account using their mobile phone with an 83.9 reading in August compared to July’s 81.7.
Drilling down, 70.3% of survey respondents reported that more consumers used mobile check capture services in August than July. And 56% reported greater usage of bill payment from month to month.
Nearly half of bankers surveyed said that not only was the average transaction amount of bill payments higher from July to August, but the average check captured was also a greater amount than in the previous month. This demonstrates escalating confidence among consumers in these popular services.
The component that tracks mobile app downtime declined with an August index reading of 54.5, compared to 57.5 in July, lower but still in negative territory. (Downtime is a contrary indicator, meaning that readings over 50 are treated as negative.) Respondents reported lower voluntary and involuntary downtime.
Interestingly, mobile app download activity still remains high despite the relative maturity of the technology. The August reading for customers using a mobile device to download a bank’s mobile banking applications was 77.8 – a strong sign of continued expansion in this area.
THE VOICE OF THE BANKING PROFESSIONAL
Comments from the bankers surveyed show adoption of mobile banking applications is indeed still in growth mode. “As we continue to acquire new clients and existing clients get more comfortable with the application, volumes are rising for most offerings,” one banker said.
Another noted: “Adoption rate is increasing as people become more familiar and trust the technology.”
Some bankers attribute the consistent uptick in adoption to phased deployment and broader marketing and awareness efforts. One survey respondent observed, “continued use of mobile products is growing as we introduce them to a larger percentage of the portfolio.” Another applauded the “effort in customer education from the retail bankers, especially the branch network.”
Banks have been able to decrease downtime through multi-layered strategies, including business process improvements and technology upgrades to increase capacity, according to respondents.
One banker offered a particularly rosy report for all aspects of mobile banking: “Transaction volume up with more customers using mobile apps and transaction value per customer up for existing and new customers. No downtime even with increased volume.”
FUTURE INDEX READINGS
Monthly readings of American Banker's Mobile Banking Intensity Index will be presented as a time series that can be used to monitor the prevailing rate and direction of change in banking business cycles and eventually benchmark whether an institution is operating in line with overall industry needs.
About American Banker Research
American Banker Research is a unit of American Banker, the flagship information brand of the diversified B2B media company SourceMedia. American Banker Research brings a full range of professional research capabilities to companies and executives in banking and payments. The unit manages the American Banker Executive Forum, a community of senior banking and payments executives who are committed to regularly sharing opinions and insights with the editorial and research groups at American Banker. Members include qualified professionals who read American Banker and its sister brands Bank Technology News and PaymentsSource, and attend their professional conferences. These include C-level executives and other senior professionals employed at commercial and community banks, bank holding companies and other financial companies across all asset classes.
SourceMedia, an Investcorp company, is a business to business media and marketing solutions company serving the financial industry and the related fields of professional services and technology. SourceMedia offers its clients and subscribers professional information services, industry-standard research, data applications, in-depth seminars and conferences, and specialized marketing services.
Verizon Communications Inc., headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, with more than 98 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and delivers integrated business solutions to customers in more than 150 countries, including all of the Fortune 500. A Dow 30 company with nearly $116 billion in 2012 revenues, Verizon employs a diverse workforce of 183,400. For more information, visit http://www.verizon.com.
For more information, please contact:
Richard Melville richard.melville(at)sourcemedia(dot)com