Mobile Banking Plays Key Role in #1 Factor for Customer Loyalty According to Yodlee Interactive Survey

A lack of tablet optimized banking apps has users turning to a cruder mobile web experience

 

SAN FRANCISCO – April 30, 2013  Banking convenience dominates all options amongst reasons to stay with banks, according to a new study conducted online by Harris Interactive on behalf of Yodlee Interactive. With the convenience of online and mobile banking, more customers are utilizing these services, while banks are responding by reducing the number of physical branches. This survey was conducted among 2,219 Americans (ages 18+) between February 28 and March 4, 2013.

The study found that 63 percent of U.S. adults who have a bank account indicate they stay with their current bank because of convenience. Customer service (48 percent) and the lack of/low account and ATM fees (42 percent) follow convenience as the other primary reasons. Interestingly enough, 1 in 3 of those who use mobile banking see their mobile banking experience as a reason why they stay with their banks (33 percent).

Seventy-one percent of mobile bankers are either satisfied or very satisfied with their bank’s mobile and web offerings. This has led the report’s sponsor, Yodlee Interactive, to conclude that mobile banking may, in fact, keep loyalty high among bank customers as physical branches decline.

“Customer loyalty is a primary concern for banks,” says Yodlee Interactive General Manager Joseph Polverari. “Our findings suggest a corollary between one of banks’ biggest priorities – customer loyalty – and consumers’ usage patterns for mobile banking. With the anticipated growth of mobile banking in the next four years, banks that want to boost customer loyalty should strongly consider developing apps that increase the convenience of consumer banking.”

Overall, 31 percent of U.S. adults who have a bank account indicate that they use mobile banking (i.e., use a smartphone, tablet device, or some other mobile device to access their banking information). Close to half (49 percent) of smartphone owners who have a bank account access their banking information on their smartphones, compared to 36 percent of tablet owners who have a bank account.

Banking app development has yet to fully catch on with consumers on tablets. Most smartphone owners who have a bank account use their bank’s mobile app to access their banking information on their smartphone, while most tablet owners access their banking information on their tablet’s mobile web browser. This distinction is most evident among adults ages 18-44 (the largest demographic of mobile device users).

“Banks have focused on smartphone apps, but stretching the same app to work on a tablet seems to have backfired as consumers are opting for mobile web experiences on tablets,” continued Polverari. “We believe that tablet optimized banking apps represent a major opportunity to reach customers with a better and richer experience.”

Another interesting finding is that smartphone owners who use mobile banking indicate they deposit checks on their smartphone device more than tablet owners indicate they deposit checks on their tablet device (33 percent versus 22 percent). Additionally, within this group of smartphone owners, those with a household income (HHI) of $75k+ are twice as likely to deposit checks to their bank account (44 percent) as those who make less than $35k (21 percent) and nearly twice as likely to do so as those with a HHI of $50-$74.9k (27 percent).

In comparison, tablet owners who use mobile banking on their tablet device pay bills online more than smartphone owners who use mobile banking on their smartphone (55 percent versus 41 percent). 

Survey Methodology

This survey was conducted online within the United States by Harris Interactive on behalf of Yodlee from February 28-March 4, 2013 among 2,219 U.S. adults ages 18 and older, among whom 2,092 have a bank account and 578 use mobile banking. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

For complete survey methodology, including weighting variables, please email Kayvan at VSC.

About Yodlee & Yodlee Interactive

Yodlee is the Platform for Financial Innovation. More than 700 companies globally, including 7 of the top 10 US financial institutions, rely on Yodlee to power personalized financial apps and services for millions of consumers, driving retention, engagement, and revenue. Leveraging the industry’s largest data platform, Yodlee also delivers real-time insight into consumer behaviors to create more dynamic interactions – anywhere, anytime, on any device.

Yodlee Interactive is focused on making the Yodlee platform available everywhere that value can be created by entrepreneurs, partners, and developers to build digital financial apps and services. As the architects of a new digital ecosystem, Yodlee Interactive optimizes the wisdom of the financial technology crowd to create, catalyze, and distribute innovations faster through an open and secure data API. Used by hundreds of companies, both small and large, Yodlee Interactive is the horsepower behind today’s coolest and most personalized digital experiences.
Yodlee is headquartered in Redwood City, California. For more information, visit www.yodlee.com.

Contacts:

Melanie Flanigan, Yodlee at (650) 980-3707, or email to mflanigan@yodlee.com

Yodlee is a registered trademark of Yodlee, Inc. Yodlee Interactive and Yodlee FinApps are trademarks of Yodlee, Inc. Any other companies, products and/or services mentioned may be registered trademarks or trademarks of, and are the property of, their respective owners.