The Federal Reserve Board observes that consumers’ use of mobile banking has increased during the past year “as smartphone adoption grew and consumers were increasingly drawn to the convenience of mobile financial services.” In its March 2016 report of its fifth annual survey on “Consumers and Mobile Financial Services,” the Fed indicates that 43 percent of adults with mobile phones and bank accounts reported using mobile banking—a 4 percent increase from the Fed’s prior survey. Since 2011, these surveys have provided an annual snapshot of how consumers use their mobile phones to interact with financial institutions, make payments, and manage their personal finances overall.
An online consumer research firm conducted the survey on behalf of the Fed, and more than 2,500 respondents completed the survey. The Fed’s March 2016 report points out a number of notable trends and developments. Among other things, the report indicates:
- The most common way in which consumers use mobile banking is the monitoring of account balances or recent transactions. The second most common way consumers use mobile banking is the transferring of money between accounts, and the third most common way involves consumers’ receipt of an alert from their financial institution—whether it be through text message, push notification, or e-mail.
- Among mobile banking users with smartphones, approximately 54 percent indicated that the “mobile channel” was one of the three most important ways they interact with their bank. In terms of the most important method of interacting with their bank, 65 percent cited the online method; 62 percent cited the ATM method; 54 percent cited the mobile channel method; and 51 percent cited a teller at a bank branch.
- Compared to mobile banking, mobile payment continues to be a less common activity. For example, the recent survey notes that 28 percent of smartphone users and 24 percent of all mobile phone users reported having made a mobile payment within the past year.
- For those who made mobile payments, the most common reason for doing so was to pay bills. Purchasing an item or service remotely was the second most common reason, and using a mobile phone to pay for something in a store was next.
- Generally, the use of mobile financial services “varies across demographic groups.” At the same time, “given the prevalence of mobile phones—particularly smartphones—among minorities, low-income individuals, and younger persons, mobile technology has the potential to empower consumers and expand access to financial services for underserved populations.”
- In keeping with the findings of past surveys, a majority of those consumers who use mobile banking and mobile payments cited “convenience” or “getting a smartphone” as the main reason for that use.
- In terms of the “main impediments” to adopting mobile financial services, respondents continue to cite concerns about security and privacy as well as a preference for other methods of banking and making payments.
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