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Board of Governors of the Federal Reserve System
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Consumers and Mobile Financial Services
March 2014

Accessible Versions

Box 1. The Unbanked, Underbanked, and Mobile Financial Services: Figure A. Most important reason for not having a checking, savings, or money market account
Response Rate
Don't have enough money 25%
Don't need or want an account 24%
Refused to answer 15%
Banking history, credit, or ID problems 10%
I wouldn't use an account enough 8%
Other 7%
I don't like dealing with banks 6%
The fees are too high or unpredictable 2%
I cannot manage/balance an account 2%
Banks don't offer the products or services I need 1%
Banks do not have convenient hours or locations 1%

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Figure 1. Usage of mobile banking and mobile payments by mobile phone type
Response Rate
Used mobile banking in the past 12 months: smartphone 51%
Used mobile banking in the past 12 months 33%
Used mobile payments in the past 12 months: smartphone 24%
Used mobile payments in the past 12 months 17%
Used mobile payments in the past 12 months: feature phones 6%
Used mobile banking in the past 12 months: feature phones 3%

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Figure 2. Usage of different means of accessing banking services
Response Rate
Have you spoken with a teller or a bank employee at a bank branch in the past 12 months? 82%
Have you used an ATM for any banking transactions in the past 12 months? 75%
Have you used online banking on a desktop, laptop, or tablet (e.g., iPad) computer in the past 12 months? 72%
Have you used telephone banking in the past 12 months, either with a land-line phone or mobile phone? 33%
Have you used mobile banking in the past 12 months? 30%
Have you made a mobile payment in the past 12 months? 14%

Note: The denominator is all respondents with a checking, savings, or money market account for each question, regardless of mobile phone ownership.

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Box 2. Alternatives to Traditional Banking and Financial Services: Figure A. Uses of money from most recent payday loan
Response Rate
Paying utility bills (phone, power, gas) 53%
Buying food, groceries, or other living expenses 51%
Paying for an emergency expense 39%
Paying rent or mortgage 38%
Paying miscellaneous bills 37%
Deposited to avoid overdraft charge(s) 24%
Other 5%

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Box 2. Alternatives to Traditional Banking and Financial Services: Figure B. Main reason for using a payday loan or advance service over a bank loan or credit card
Response Rate
I didn't think I would qualify 28%
The location of the payday lender was more convenient 19%
The payday loan was quicker 19%
It was easier to get a payday loan 15%
Banks don't make loans for small amounts of money 11%
Refused to answer 4%
More comfortable with the payday lender than a bank 3%
Other 2%
I didn't want the loan to show up on my credit report 0%

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Figure 3. Using your mobile phone, have you done each of these in the past 12 months? (Among mobile banking users)
Response Rate
Checked an account balance or recent transactions 93%
Downloaded your bank's mobile banking app 72%
Transferred money between your bank accounts 57%
Received an e-mail alert from your bank 53%
Made a bill payment using banking website or app 44%
Received a text message alert from your bank 43%
Located the closest in-network ATM for your bank 41%
Deposited a check using mobile phone camera 38%
Transferred money between two accounts 26%

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Figure 4. What are the main reasons you have decided not to use mobile banking? (Among those who do not use mobile banking)
Response Rate
My banking needs are being met 89%
I don't see any reason to use mobile banking 75%
I'm concerned about the security of mobile banking 69%
The mobile phone screen is too small 44%
I don't have a smartphone 44%
I don't trust the technology 35%
It's too difficult to use mobile banking 17%
I don't do the banking in my household 12%
Bank charges for mobile banking 7%
I don't have a bank account 4%

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Figure 5. What are the main reasons you have decided not to use mobile payments?
Response Rate
It's easier to pay with cash or a credit/debit card 76%
I'm concerned about the security of mobile payments 63%
I don't see any benefit from using mobile payments 61%
I don't have the necessary feature on my phone 46%
I don't trust the technology 44%
I don't really understand all the different options 37%
It's difficult or time consuming to set up or use 34%
The places I shop don't accept mobile payments 27%
I don't need to make any payments 23%

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Figure 6. How safe do you believe people's personal information is when they use mobile banking? (By use of mobile banking)
Response Rate
Mobile banking user Not a mobile banking user
Very safe 15% 2%
Somewhat safe 56% 22%
Somewhat unsafe 17% 30%
Very unsafe 4% 25%
Don't know 7% 21%
Refused to answer 2% 1%

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Figure 7. Would you or do you already like to use your mobile phone for any of the following purposes, assuming they were made available to you?
Response Rate
None of the above 50%
Compare prices when shopping 34%
Track your finances 28%
To receive and manage discount offers and coupons 25%
To receive offers and promotions based on your location 19%
Organize, track, and store gift cards, memberships, loyalty, and reward points 15%
Refused to answer 1%

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Figure 8. What kind of text alerts do you receive?
Response Rate
Low-balance alerts 52%
Statement available notification 49%
Payment due alerts 42%
Deposit or withdrawal alert 41%
Fraud alerts 38%
Credit card balance alerts 25%
Saving reminders 8%
Refused to answer 5%
Other 4%

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Figure 9. Thinking of the most recent low-balance alert you received, which of the following actions did you take after receiving the alert?
Response Rate
Transferred money into the account 47%
Reduced my spending 37%
Deposited money into the account 32%
None of the above 19%
Refused to answer 0%

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Last update: April 16, 2014