American Banker Mobile Banking Index Shows Steady Growth

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June Reading of 72.5 reflects continued expansion

American Banker’s Mobile Banking Intensity Index (MBII), a monthly measure of mobile banking deployment and adoption in the U.S., revealed a continued expansion in the June reading of 72.5, although at a slower pace than the growth experienced in May at 73.8.

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 June reading of 72.5 shows continued growth for mobile banking, although at a slower rate than the previous month. Data is based on a survey of 336 banking professionals conducted in July, in which respondents were asked about the change in business conditions in June. (View article: http://www.americanbanker.com/issues/178_146/mobile-banking-activity-continued-to-grow-in-june-1060986-1.html)

Among banks surveyed, 55.4% said the volume of activity from retail customers using a mobile device to download banking applications was higher than it was the previous month, while 42.3% said it stayed the same. The percentage of respondents who said there was less activity in June than in May was only 1.5%.

Banks once again reported increased activity among customers who use their smartphone’s camera to deposit checks, with an index value of 87.1 for June. Of those surveyed, 76.8% said use of the popular feature was higher in June than in May. Also, 72.5% of respondents said that the average transaction value for retail customers using a mobile device to deposit a check was higher in June than in the previous month.

Nearly two-thirds of survey respondents, 64.3%, said the volume of activity from retail customers using a mobile device to check their account balances or to check transactions was higher than in May. The use of mobile banking’s bill payment feature was higher in June than in May, according to 49.9% of bankers surveyed. According to 35.6% of respondents, the transaction value on bill payments was higher in June than the previous month. A majority, 60.4%, reported that transaction values stayed the same between the two months.

Downtime decreased among financial institutions, with a June index reading of 53.6 compared to May’s 59.1. Only 13.6% of respondents reported downtime higher in June than in May. Others said downtime either stayed the same (65.6%) or was lower (20.8%).

THE VOICE OF THE BANKING PROFESSIONAL

Comments from banking professionals responding to the MBII survey suggest that activity in this channel will continue to increase. Some respondents tie growth directly to the rise in advertising efforts around mobile banking. “More marketing to alert customers to this service has resulted in higher adoption rates and more mobile activity,” one respondent said.

Some bankers attribute the uptick in mobile banking usage to new features such as being able to deposit checks using a smartphone camera. “Remote mobile deposit is the application which generates the greatest trial for mobile. Once that is used successfully, mobile usage overall grows on a per-customer basis,” a banker noted.

Optimism continues for the future of mobile banking. As one respondent commented, “The higher volume in activity is a great indicator of success in delivering services that the customer wants and keeps us competitive in the marketplace.”

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.

About SourceMedia
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.

About Verizon
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.

Contact
For more information, please contact:

Dana Jackson
dana(dot)jackson(at)sourcemedia(dot)com
212.803.8329

Richard Melville richard(dot)melville(at)sourcemedia(dot)com
212.803.8679

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Dana Jackson
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