Finding Your Share of Wallet : Effective Mobile Banking Segmentation Strategies

FINDING YOUR SHARE OF WALLET Effective Mobile Banking Segmentation Strategies Banks must apply their consumer segmentation smarts gained from years of successful cross-selling and customer-acquisition to advance mobile service adoption and differentiation. 10 Cognizant Mobile Banking Reality Check YES We surveyed 2,100 U.S. consumers, roughly 700 of whom use mobile banking services. Our research found .. Reasons for using Mobile Banking of banking consumers 33% have adopted mobile banking 41% 38% services because because it allows 24-hour access it enables portability Mobile Banking by the Numbers Percentage of category that primarily banks using mobile devices To tap this growing opportunity, banks must target consumer needs based on their profiles. 58% of Aspiring Bloomers 74% Affluents 57% of Liberal 39% of Cautious Seniors 18-34 years of age; 18-34 years of age; 35-54 years of age; above 55 years of age; average annual income <$75K average annual income >$75K average annual income between average annual income >$100K $50K and $100K Different Strokes for Different Folks Aspiring Bloomers Ardent Affluents Use basic mobile Use advanced features such as banking features such as Mobile Photo Bill Pay, Virtual Wallet and Balance Alerts, Fund Transfers and Near Field Remote Payments Communication Liberal Users Cautious Seniors Primarily use basic mobile banking features such as Concerned with Mobile Banking Security Account Balances or Loan Balances $. Identfying the Sweet Spots Aspiring Bloomers are interested in advanced mobile banking features Photo Bill Pay 14% Virtual Wallet 16% Near Field Communication 14% Ardent Affluents are interested in seeking guidance 16% Financial Investments Personal Financial 12% Management Tools 8% Financial Challenge Games Liberal Users 8% interested in seeking advice to better manage their money Cautious Seniors 12% interested in seeking advice to better manage their money Generic Concerns Across Segments and Possible Solutions Mobile Banking Obstacles Mobile Banking Priorities Biometric security 68% feature is an important consideration in choosing or switching banks 32% Security of mobile banking transactions is the major implied concern 58% Mobile security is seen as the 71% important feature in Fear of Fraudulent most Transactions choosing or switching banks 40% 35% Willing to pay for biometric security features Connectivity Issues Percentage of respondents selecting each option; respondents allowed to select more than one option. Improvement Recommendations To advance mobile adoption, banks must focus on: 23% 56% Voice Recognition Personal Financial Information 20% 8 354% Facial Recognition Fingerprint Matching To better understand mobile banking segmentation, download our white paper at http://cogniz.at/ MobileBanking_SegmentBasedStrategies In Collaboration with Cognizant monitise TM %24