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SMS Text , WAP/Browser-based, Downloadable and Embedded Applications Features Comparison
|SMS/Text||WAP/Browser-based||Downloadable application||Embedded application|
|100% of phones sold today||95% of phones sold today WAP-enabled; but many require difficult activation 18% have smartphones-best for viewing||95% of phones sold today WAP-enabled; but many require difficult activation||Not widely available yet|
|FI-carrier-independent||FI-carrier-independent||Requires FI partnerships with wireless carriers - mobile banking vendors can facilitate partnerships||Requires FI partnerships with wireless cariers and mobile handset vendors - mobile banking vendors facilitate|
|Relatively less expensive (depending on plan) or approx. $0.20 per message||Requires expensive data plan||Requires expensive data plan||Requires expensive data plan and new phone|
|Easy to set up and use for most consumers||Fairly easy to set up and use for most consumers||More difficult; downloading application can be challenging for many||Easiest to set up and use for consumers, but availability is limited|
©2009 Javelin Strategy & Research
Figure 2. Mobile Banking Ecosystem shows a Brand, Company, or Financial Institution transmitting information to a authentication vendor, aggregator, mobile banking vendor, handset manaufacturer and operating system. It is then transmitted to a SMS/MMS, WAP/MOBI, or a downloadable or preloaded application. It is then transmitted to the mobile network operators and the mobile subscriber receives information on their mobile device.
Contactless and Mobile Payments Ecosystem
Mobile can have a positive or negative impact on institution and consumer safety
Mobile (Bank access via handheld mobile device with an over-the-air or mobile Internet connection)
Mobile negative impacts are:
Mobile postive impacts are:
Fixed Online (bank access via desktop or laptop computer with an Internet connection)
Fixed Online negatives are:
Fixed Online postives are:
Voice (access via voice call to customer service center)
Voice negatives are:
Voice positives are:
Banking, payments, commerce and more
|M-Finance App.||Market Impact||Security Impact||Players||US Adoption|
|Alert notices||Low||+||FIs, ?||Growth slowing|
|Review-and-release alerts||Medium||++||FIs||Urban legend|
|Bank account management||Medium||-||FIs||Growing fast|
|Payment Transfers||High||--||FIs, Telcos||Low|
|In-mobile or EC purchases||Low||--||FIs, Telcos||Moderate|
|In-store purchases||High||?||FIs, Telcos, merchants, chips, networks||No, high in long-term|
©2009 Javelin Strategy & Research. All rights reserved.
Chart entitled Millions of Mobile Banking Users and Percentage of Users
Vertical bar chart which shows the actual and projected numbers of U.S. adults with mobile phones. The number of U.S. adults using mobile banking last 12 months rises from the actual 24 million in 2008 to the projected 99 million in 2014. The percentage of U.S. adults with mobile phones from the actual 20% in 2008 to the projected 55% in 2014. The percentage of U.S. adults using mobile banking in the last 12 months rises from about 12% in 2008 to 45% in 2014.
Base: U.S. adults with mobile phones. ©2009 Javelin Strategy & Research. All rights reserved.
Question 6: You indicated you do not use mobile banking. For what reasons do you not use mobile banking? (select up to three)
Chart entitled Primary Reasons Consumers Do Not Use Mobile Banking
Horizontal bar chart shows primary reasons consumers do not use mobile banking on the y-axis and percentages from 0% to 50% on the x-axis. X-axis: I don't see the value of mobile banking at 44%, Security of mobile banking at 42%, The cost of data access on my wireless plan at 34%, Cost or hidden fees from my bank for using the service at 10%, Dropped or lost telecommunications connections at 9%, It is not offered by my bank or credit union at 8%, Potential limitations in wireless plans at 6%, New technology, it may not work correctly at 5%, My bank offers it but i don't have access to it at 4%, Setup process to register accounts at 3%, I don't have a formal banking relationship at 1%, Other, please specify at 14%
July 2009, n = 2,396
Base: All consumers with mobile who do not use mobile banking. ©2009 Javelin Strategy & Research.
Chart entitled Essential Features to Spur Mobile P2P Usage, Affluent vs. Less Affluent
Question 35: Which of the following features do you believe are essentialin order for you to begin using mobile person-to-person (P2P) transfers?
Horizontal bar chart shows on the y-axis the essential features to spur mobile P2P (person-to-person) Usage, Affluent vs. Less Affluent and on the x-axis the percentage from 0% to 50% showing consumers likely to use mobile P2P. The affluent goes from 100K to 149K and less affluent from 25K to 34K. For affluent, 72% consumers are likely to use mobile P2P for the enhanced security (so only I can make transfers) feature and 63% less affluent. Real-time access to fund (45% affluent, 50% less affluent). Real-time notification of funds transfer (text message sent to sender and receiver of funds transfer): 44% vs. 53%. Straightforward registration process (20% vs 27%). Simple user interface (display only important features) 37% vs 24%. Other, please specify is 7% vs. 5%.
Sept. 2008 n = 92, 60
Base: Consumers likely to use mobile P2P. ©2009 Javelin Strategy & Research.
Chart entitled Leaders among 18: Citi, USAA, Chase, Bank of America, Capitol 1, Wells Fargo
Horizontal bar chart on the x-axis shows the Mobile Monitoring, Money Movement, and Advanced Capabilities with the list of what financial institutions reviewed. The y-axis shows the percentages of 0% to 120% for features being offerred in the three categories. Following is the features being offerred, with their percentages.
September 2009, n=18
Base: All financial institutions reviewed. ©2009 Javelin Strategy & Research.
Chart entitled Potential Evolution and Key Catalysts for US Mobile Wallet shows the evolution of mobile banking from years 2009 to 2014.
Javelin provides superior direction on key facts and forces that materially determine the success of customer-facing financial services, payments and security initiatives. Our advantages are rigorous process, independent position, and expert people.
Image of turning wheels with text about Technology Vendor, Financial Services Provider, Third Party, Payments Firm, and Consumer of Business End-User.
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