American Banker Mobile Banking Index Rises
New York, NY (PRWEB) July 30, 2013 -- American Banker’s Mobile Banking Intensity Index (MBII), a monthly measure of mobile banking deployment and adoption in the U.S., rose to 73.8 in May from 70.4 in April, the month it was introduced. (View article: http://www.americanbanker.com/issues/178_125/mobile-banking-activity-rises-in-may-1060295-1.html)
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 May reading of 73.8 shows strong expansion of mobile banking. Data is based on a survey of 306 banking professionals conducted in June, in which respondents were asked about the change in business conditions in May. (View article: http://www.americanbanker.com/issues/178_125/mobile-banking-activity-rises-in-may-1060295-1.html)
Among banks surveyed, 65.6% 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 30.9% said it stayed the same. The percentage of respondents who said there was less activity in May than in April was only 3.5%.
Using a smartphone to deposit a check by snapping a photo of it was the mobile-banking feature that showed the most growth in May. Of those surveyed, 76.9% said mobile check deposit use was higher in May than in April. Also, 69.2% of respondents said that the average transaction value for retail customers using a mobile device to deposit a check was higher in May than in the previous month.
Another mobile-banking feature that showed continued expansion was checking account balances with a smartphone, with 70.6% of financial institutions surveyed saying activity was higher in May than in April.
Increased roll-out of mobile check deposit may be driving the decrease in use of smartphones to locate physical in-network ATM locations. Just 23.2% of respondents said this activity increased in May. For purposes of calculating the MBII, ATM searches are viewed as a contrary indicator due to their connection to traditional branch banking activity. Thus the low reading in this case is a positive in terms of the composite.
The MBII showed improvement in mobile banking downtime for the month of May, with 27.2 % of bankers saying it had dropped and 63.7% saying it stayed the same. Only 9% of respondents said the amount of downtime increased in May from April, when several large institutions were hit by denial-of-service attacks.
The Voice Of The Banking Professional
Comments from banking professionals responding to the MBII survey suggest that activity in this channel is still firmly in the growth stage. According to one respondent: “Mobile activity across the board has increased each month since implementation 18 months ago.”
Some respondents expressed optimism about increased mobile-banking activity in the future. Said one banker: “Activity is relatively steady, but growing. We have some marketing efforts scheduled for June that should result in an increase in mobile penetration/usage.”
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.jackson(at)sourcemedia(dot)com
212.803.8329
Richard Melville richard.melville(at)sourcemedia(dot)com
212.803.8679
Jeannie Nguyen, SourceMedia, Inc., http://www.sourcemedia.com, 212-803-8324, [email protected]
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