2012 CI Mobile Finance Survey Summary
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Transcript of 2012 CI Mobile Finance Survey Summary
2012 Mobile Finance Survey Summary
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Executive Summary Firms across the financial services industry are hard at work developing new mobile platforms and capabilities for their
clients. Since 2011, Corporate Insight has been an expert in the competitive landscape and key trends in mobile finance, first
with our Money on the Move: Mobile Finance Review 2011 study and currently through ongoing Mobile Monitor coverage.
In early 2011, we conducted a survey to inform our initial research into mobile financial services, soliciting responses from
our client contact database of executives across the industry. Our purpose was to understand how firms view the
opportunities presented by the growth of mobile technology and to gauge future mobile trends within the financial services
industry. We conducted a similar survey in 2012 to see what may have changed and to update our expectations going
forward. This year, we received 124 responses representing more than 50 different firms across the financial services.
Our survey posed 16 questions to respondents regarding their firm’s current offering, as well as the goals it seeks to
address and the challenges it faces. We also delved into recent developments, current status and future outlook for
respondents’ firms and the financial industry as a whole. Where relevant, we provide the comparable figures from our 2011
findings.
In many ways, responses in 2012 were similar to what we found in 2011, although some interesting year-over-year
comparisons emerged. Mobile remains a key part of firms’ customer experience strategies. Most respondents are happy with
their firm’s mobile offering, but they cited many familiar names – and some new ones – as mobile finance leaders. Firms
continue to dedicate time and money to improving their mobile services, focusing not only on supporting new devices but
also strengthening current platforms with new features. It’s worth noting, though, that the industry did not achieve all of its
planned additions since our 2011 survey. Significant challenges remain, and most firms still struggle to measure return on
investment (ROI), although some comments indicated that mobile does not need a clear ROI to justify their efforts.
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Methodology
This is our second annual survey of
financial services executives as part of our
ongoing research for Mobile Monitor
We posed 16 questions focusing on firms’
mobile efforts
Does your firm offer a mobile formatted
website or app to clients?
What do you consider to be the primary
objectives of your firm's mobile offering?
How would you describe the impact your
mobile efforts have had on your company's
business?
Survey fielded Q2-3 2012
124 responses from 56 firms
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Respondents are from a mix of retail financial firms
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Annuity/Insurance (Life) 7%
Banking 26%
Brokerage 35%
Credit Card 6%
Mutual Fund/Asset Management
19%
Insurance (P&C) 7%
What industry do you work in?
Annuity/Insurance (Life)
Banking
Brokerage
Credit Card
Mutual Fund/Asset Management
Insurance (P&C)
Respondents are familiar with, and involved in, their
firms’ mobile efforts
89% of respondents know of their firms’ mobile initiatives
78% are directly involved in their company’s mobile efforts
36% lead all or a portion of their company’s mobile efforts
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Yes, I am familiar with our current
offering and/or future plans
89%
Yes, but we are NOT planning initiatives
4%
No, I am unaware of
anything or am not the right
person 7%
Are you familiar with your firm's current or future mobile offering for customers?
I am directly involved with
my company's mobile efforts
42%
I lead a portion of my
company's mobile efforts
25%
I lead my company's
overall mobile efforts 11%
I am not involved with
my company's mobile efforts
22%
Which of the following best describes your involvement with your company's mobile
efforts?
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Yes 77%
No 20%
I don't know 3%
Does your firm offer a mobile formatted website or app to clients?
78% of respondents say their firm already offers their
clients a mobile platform
Even more think their firm should be mobile, though
90% think it’s “definitely” a good idea to provide their clients with a mobile
experience – up from 70% in 2011
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Definitely 90% Probably
8%
Maybe 2%
Probably not 0%
Definitely not 0%
Do you think that your firm should provide a mobile experience to your customers?
98% say mobile is important to customer experience
85% “very” important, 13% “somewhat” important
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Very Important 85%
Somewhat Important
13%
Not Very Important
3%
Not at All Important
0%
How important do you think mobile is to your firm's customer experience strategy?
In their own words…
“Mobile is the wave of the future.”
“We want to be the vanguard –
we don't want to be straggling behind with the dinosaurs.”
“It is an important differentiator.” “Being able to monitor accounts and place trades
from anywhere at anytime is important
to a significant portion of our clients.”
“Active traders want to trade anywhere but many clients,
even those who are long-term investors, want to monitor accounts easily.”
“Important for younger members and those without access to PCs.”
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“All our competitors do. Customers expect it.”
“Fast-growing client segment.”
“Clients are more connected via mobile devices
and expect their banks to provide the information
and services they need no matter
where they are, or what time.” “Absolutely required in this day and age.”
“People are only spending
more and more time on mobile.”
“Alternative way to connect with customers.”
“Convenience is key! And mobile is convenient.”
“Customers are actively requesting it,
and competitors are providing it.”
“It's mandatory and expected today.”
“It's a requirement today!”
“The rest of the industry is playing in the mobile arena.”
Key objectives for mobile are unchanged since 2011
Increasing customer satisfaction remains most important
“Customer retention,” “brand image” and “keep up with the competition” are
cited as important reasons again in 2012
“Acquire new customers,” “lower servicing costs” and “move clients away from
the phone or online channels” are noticeably less important goals
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2.52
3.04
3.66
4.26
4.26
4.44
4.61
0 1 2 3 4 5
Move clients away from the phone or online channels
Lower servicing costs
Acquire new customers
Keep up with the competition
Improve our brand
Increase customer retention
Increase customer satisfaction
Very important
What do you think are the primary objectives for your firm's mobile offering?
Not important
Banks aim to lower costs most, though
Banks rated “lower servicing costs” as a significantly more important objective
than brokerages and other industry segments
Other objectives (see previous slide) were similar across industry segments
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0%
25%
50%
1 2 3 4 5
Very Important
“Lower servicing costs” importance ratings
Banking
Brokerage
Not Important
Bank average:
3.6
Brokerage average:
2.5
Just over half think they are above average or best in industry
An additional 25% say they’re about average
Most respondents are happy with their firm’s mobile offering
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The best in our industry
6%
Considerably above average in
our industry 44%
Average for our industry
25% Slightly below average in our
industry 10%
Considerably below average in
our industry 12%
The worst in our industry
3%
How would you rate the overall mobile experience your company CURRENTLY delivers to clients?
Most respondents see no clear industry leaders at this time
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The firm I work for
13%
There is no clear leader at this
time 55%
None of the firms we compete
with have implemented a mobile platform
4%
A leading company
(see next slide) 28%
Within your industry, who do you feel offers the best mobile experience to customers?
However, other respondents singled out leaders
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Note: Larger font = more mentions
Top-rated firms remain the same as last year
Some firms earn their first mention among leaders in our 2012 survey:
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Respondents saw their firms improve in the last 12
months, but was it enough to keep up?
While most banks and brokerages met expectations, the majority of mutual
fund/asset management firms lagged
Relatively few respondents (17% overall) said their firm exceeded expectations,
but 33% felt the industry as a whole was advancing faster than anticipated
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17% 11%
18%
46% 56%
24%
38% 33%
59%
0%
50%
100%
Bank Brokerage Mutual Fund/Asset Management
How would you rate your firm's mobile development in the last 12 months?
Slower than expected
Met your expectations
Faster than expected
Met your expectations
42%
Faster than expected
33%
Slower than expected
25%
How would you rate the overall financial service industry's mobile development in
the last 12 months?
Nearly every firm plans new mobile initiatives by
mid-2013
Since most firms already offer mobile, over 80% of firms will be adding features
to their existing platforms
Sixty-eight percent also plan to launch new mobile sites or apps for new devices
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68%
82%
39%
3% 0% 0%
25%
50%
75%
100%
Add new mobile sites or apps for
new devices
Add new features to
existing platforms
Improve back-end functionality
Stay the same Get worse
Over the next 12 months, how will your firm’s mobile offering change?
Most widely-supported devices set to shift in 2012
Mobile sites and apps for the iPhone, Android and iPad should become nearly
universal – with BlackBerry likely to fall behind
Platforms most targeted for development include mobile sites (37%), Android
tablets (35%), iPad (32%), Kindle Fire (28%) and Windows Mobile (26%)
Projections from 2011 were overly optimistic, though – current numbers are not
as high as predicted
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79% 71%
59% 58% 55%
31% 26%
19% 18%
12% 18%
12%
32% 37%
20% 35%
28% 26%
0%
25%
50%
75%
100%
iPhone Android phone
BlackBerry iPad Mobile optimized website
SMS/text commands
Android tablet
Amazon Kindle Fire
Windows Mobile
Does your firm support the following platform, or does it plan to add in the next 12 months?
Planning to add
Currently using
Significant challenges remain for mobile efforts
“Other competing priorities,” “Too many platforms/devices,” “Budget” are all still
highest on the list
“Low adoption by customers” now ranks as the least challenging
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2.28
2.38
2.81
2.97
3.43
3.60
3.79
0 1 2 3 4 5
Low adoption by customers
Executive/Sr. Management support
Lack of important skills in the organization
Confusion about how to develop strategy
Too many platforms/devices to support
Budget
Other competing priorities
Very Challenging
To what extent are each of these issues a challenge in your firm's/department's mobile efforts?
But many already see a positive impact from their efforts
Even if they aren’t “industry leaders,” 60% of firms have seen a somewhat to
very positive impact on their company’s business, courtesy of mobile
More than a quarter (26%) think it’s still too early to gauge the impact
Very few (3%) think their mobile efforts have negatively impacted their company
Figures are comparable to 2011
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It's too early to tell 26%
Very positive impact 39%
Somewhat positive impact
22%
Minimal or no impact
3%
Somewhat negative impact
3%
Very negative impact
0%
I don't know 7%
How would you describe the impact your mobile efforts has had on your company's business?
Impact varies by industry segment
Brokerage execs were most pleased overall, with 78% seeing a “very” or
“somewhat positive impact”
More bank execs were “very positive” (52%), though – up from 29% in 2011
The mutual fund/asset management industry still awaits mobile’s impact, with
40% not sure yet
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48%
30%
0%
4% 13%
52%
15% 4% 0%
26%
13% 20%
7% 0%
40%
0%
25%
50%
75%
Very positive impact
Somewhat positive impact
Minimal impact Negative impact Too early to tell
How would you describe the impact your mobile efforts had on your company's business?
Brokerage Banking Mutual Fund/Asset Management
ROI metrics are still elusive
Only 16% say they currently measure the success of their mobile efforts
For some respondents, mobile doesn’t need a clear ROI
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We do not currently
measure ROI of our mobile
efforts 31%
We are currently building metrics
to measure mobile ROI
30%
We are actively measuring ROI
16%
I don't know 23%
Does your company measure the return on investment (ROI) of your mobile efforts? “It's a service to clients; hard to
monetize and thus measure ROI.”
“We don’t look at mobile as a
separate investment from the rest of
the bank infrastructure.”
“Did not do it for ROI.”
“Motivation was not ROI-driven, but rather
a play to remain competitive and improve
retention & satisfaction.”
About Corporate Insight
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No one understands the intersection of technology and financial services like Corporate Insight. For two decades, we have
tracked new developments in the retail financial services industry through our syndicated Monitor research and consulting
services. We pride ourselves on identifying best practices in online banking and investing, online insurance, mobile finance,
active trading platforms, social media and other emerging areas. In the process, we have helped clients across the entire
spectrum of the financial services industry stay on top of industry trends and improve their competitive position.
Why Choose Corporate Insight?
Expertise – For 20 years, Corporate Insight has focused exclusively on tracking and evaluating the online and offline user
experience offered by financial service firms to prospects, clients and advisors. Our expertise in this area is unmatched.
We become the customer – Rather than rely on third-party data as a basis for our research, we hold live accounts at all
major financial firms. This provides us with unparalleled knowledge of the true customer experience and gives our research
an unmatched level of detail.
Objective and granular approach – All of our services go into a very granular level of detail with the objectivity that only an
experienced third-party can provide. Clients use our research because they want to eliminate assumptions and gain a better
understanding of industry trends and best practices.
Company-wide value – Our deliverables have great value not only for the more obvious functional areas—C-level
management, market research, product management and development, customer experience, e-commerce, strategic
planning—but also for areas such as pricing, information technology, operations, distribution, marketing and compliance.
Accessibility – We impose no distribution restrictions or seat licenses on our clients. All of our products and services are
available on a company-wide basis to all employees for a single fee. Furthermore, our executives and experienced industry
analysts are always available to clients at no additional charge.
For more information, please visit www.corporateinsight.com.
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(212) 832-2002 x134
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(212) 832-2002 x118
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