UK Study Finds GEN Y Willing To Pay For Mobile Banking

by Mercator Advisory Group 0

In the early days of online banking bankers tried to charge a monthly fee of around $5 for online banking and bill payment, but competitive pressure led by Bank of America made almost all banks drop the fee. Will we have another chance to generate additional revenue from mobile banking? So far U.S. banks are providing mobile banking for free, but this study from the UK suggests they might be able to charge a fee to the GEN Y segment.

A new consumer discovery panel study by Simon-Kucher & Partners, global strategy and marketing consultancyreveals 76 percent of ‘Generation Y’ consumers (18-26 year olds) would consider a monthly fee of £5.00 a fair price to pay for mobile banking. Findings demonstrate how mobile banking could provide a new revenue source for banks instead of providing the service for free. This Generation Y demographic – equating 12 percent of the UK population – represents an untapped opportunity for banks.

“This demographic identified a fair price for mobile banking and over three quarters of respondents are willing to use it.” Most banks see mobile banking as a means of reducing costs by migrating expensive branch and call-centre transactions to mobile devices. Consequently, mobile banking is offered free. Georg Wuebker, Global Head of Banking at Simon-Kucher & Partnerscommented, “This demographic identified a fair price for mobile banking and over three quarters of respondents are willing to use it.”

For more information read the story in EON: http://eon.businesswire.com/news/eon/20110503005972/en/Mobile-Banking/Generation-Y-Consumers/Paid-for-mobile-banking

Read the press release from Simon-Kuchner & Partners: http://www.simon-kucher.com/internetdatabase/publication.nsf/dfb97b9f73739cd7c1256f86004c5ad9/d0efd4a178c13699c1257885002884eb?OpenDocument

Also read Mercator Advisory Group’s CustomerMonitor Reports with primary research on mobile banking and payments:
“Retailer Apps Show Promise As Mobile Consumers Stay Cautious On Payments
http://www.mercatoradvisorygroup.com/index.php?doc=Primary_Data_Series_(PDS)&action=view_item&id=526&catid=20

“The Mobile Consumer: Well-Equipped But Cautious” http://www.mercatoradvisorygroup.com/index.php?doc=Primary_Data_Series_(PDS)&action=view_item&id=408&catid=20