According To Synovate Mobile Banking Perception Study
Whether or not a bank offers mobile banking services impacts people's perceptions toward it and the bank they ultimately choose to do business with, according to the Mobile Banking Perception Study by global market research company Synovate.
The study also found that of those who use mobile banking, close to 50% use it for stock trading.
The Synovate Mobile Banking Perception Study, conducted in October 2010, surveyed 915 people aged 18 to 64 residing in Hong Kong on mobile banking usage, their perceptions on banks that offer mobile banking services, and what would encourage them to use these services.
Early adopters of mobile banking
The study found that four percent of Hong Kong respondents are currently using mobile banking.
Commented Cindy Chan, Associate Director of Research for Synovate in Hong Kong:
"Though usage of mobile banking seems low at this time, given the current ownership of smartphones with the ability to conduct mobile banking at 39%, and how recent mobile banking was introduced to the market, this figure is not bad at all. We anticipate with more people owning smartphones, there will be more people adopting mobile banking. Findings show that of those surveyed who own a smartphone, 11% are already using mobile banking."
Among the early adopters of mobile banking, close to half (49%) have used it in the past 12 months to buy and sell stocks, one in three (32%) has bought and sold foreign currencies, and one in four (23%) has purchased other banking products through this newest introduced banking channel.
"This is a promising channel for banks, seeing these strong figures of product take-up through mobile banking. We are also seeing that 41% of mobile banking users surveyed have looked up banking-related promotions and discounts through this channel. For banks, this type of digital marketing initiative is cheaper than above the line activities and can be more easily tailored to the needs of different customers. For consumers, this approach is less intrusive than eDMs and SMSes," said Chan.
Positive impact on banks' image from mobile banking services
The study found that for banks with mobile banking services, over 80% of respondents perceive these banks as keeping up with changing times and meeting their needs.
The younger segment feels especially strong towards banks that offer mobile banking services as 88% of respondents aged 18 to 29 indicated these banks are progressive, while four out of five (86%) think these banks are trying their best to satisfy the diverse needs of their customers.
"These figures are strong indications that availability of mobile banking creates an impact on consumers' overall perceptions toward the banks.
"Across all Hong Kong respondents surveyed, whether they are current users of mobile banking or not, over 60% think banks that offer mobile banking are superior to other banks."
In fact, over half of the survey respondents (54%) said that a bank with mobile banking offerings will prompt them to use that bank's services more. This is especially true for those aged 30 to 44, considered to be one of the top earning groups, with 59% indicating this. Sixty percent of respondents even said they prefer to use a bank that offers mobile banking services more than other banks.
Please see Figure 1 for further details.
I would use mobile banking if...
The Synovate Mobile Banking Perception Study also looked into how to raise consumers' interest in adopting mobile banking.
Ease of usage and convenience play a key role, with over 50% of the respondents indicating that the ability to store frequently used functions and one-click access to information will increase their interest in mobile banking. This appeals to men (54%) slightly more than women (49%).
Thirty-nine percent of respondents agreed that product and service promotions and discounts customized for mobile banking will raise their interest in using this channel.
"Banks that invest in better understanding the diverse needs and changing mindsets of their consumers, and providing them with targeted messages that directly meet their needs, will have more opportunities to engage them," said Chan.
About half said that having top notch security protocols and programming will raise their interest in mobile banking, especially among the younger segment, with 65% of 18 to 29 year-olds indicating this. This is the segment that, once they adopt mobile banking, will likely utilize it from that point onward.
"Banks can be inspired by this information. In their communications about their mobile banking offerings, they should place further emphasis on the security aspects of their services. Double password login, top of the industry encryption, network access security and such, has an important impact on persuading non-users to give mobile banking a try," concluded Chan.
Please visit http://www.synovate.com/
Hong Kong - 25 November 2010