Mobile Banking Reaches Critical Mass for Big Banks

by Mercator Advisory Group 0

Mobile payments with smartphone. Payment terminal concept. Online transactions, paypass and NFC. Cartoon flat style vector illustration.

The 4Q11 financials from both JPMorgan Chase and Wells Fargo underline the extent to which mobile banking has emerged as a key banking channel, while also indicating that online penetration may have reached a ceiling. Key points include:
Chase grew its active mobile banking customers by 57% between 4Q10 and 4Q11. During the same period, active online banking customers increased by 3%
Active online banking customers as a percentage of total Chase checking customers rose from 62% in 4Q10 to 65% in 1Q11, but had remained at 65% for the three subsequent quarters.
Active mobile customers as a percentage of checking customers rose from 20% in 4Q10 to 32% in 4Q11
Active mobile customers as a percentage of active online customers rose from 32% in 4Q10 to 48% in 4Q11
The rate of growth in active mobile customers does not yet show signs of abating.
At Wells Fargo, active mobile customers increased 55% between 4Q10 and 4Q11. During this period, active online customers rose 8%.
Active mobile customers as a percentage of active online customers rose from 26% in 4Q10 to 37% in 4Q11.

The Q4 results from Chase and Wells Fargo highlight the importance of mobile banking as a critical channel for financial institutions. These results are not surprising, and reinforce the results of recent Mercator Advisory Group survey results and research reports. Mercator research also shows continuing demand all three modes of mobile banking, and an acceleration of demand for downloadable mobile banking web apps.

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