Smaller banks and credit unions face broadening mobile banking gap

Mobile Banking Industry

Mobile Banking Industry

The most recent report issued by Javelin Strategy & Research has identified a broadening gap between the adoption rates of mobile banking at smaller banks and credit unions, and that experienced by much larger banks and financial institutions.

The data from the research firm showed that among regional and community banks, only 21 percent of consumers are adopting mobile banking. Similarly, only 15 percent of consumers are using mobile banking at credit unions. Comparatively, 37 percent of the customers of very large financial institutions are adopting the behavior.

Banking using a mobile device, such as a smartphone or tablet, is experiencing an extremely rapid rate of growth, having increased by 63 percent when compared to the use at the same time in 2010. Large financial institutions are making the most significant progress in this channel, and as smaller banks and credit unions start to fall behind, it could mean that the mobile banking arena will be transformed yet again. This, unless the smaller institutions alter their tactics and provide improved mobile offerings in order to draw a solid smartphone and tablet banking customer base.

The most recent predictions by Javelin over the mobile commerce channel have examined how credit unions and banks can design their strategies to position themselves for success as mobile banking organizations, and ensure that they keep up with their larger cousins.

It has been predicted that over half of all consumers will be using mobile banking services by 2016. Among the top 25 banks, 92 percent are already offering banking services over mobile devices. This means that smaller banks and credit unions must build their capabilities, especially for tablet and smartphone customers, if they intend to be able to continue to compete in the marketplace of the near future.

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