All Things Mobile… - Sitemason Things Mobile TBA Wetherington...All Things Mobile… Payments, ... 2011 2012 2013 2014 2015 2016 2017 2018 lts ones U.S. adults with mobile phones

1 | © 2014 Jack Henry & Associates, Inc.®1 | © 2014 Jack Henry & Associates, Inc.®

All Things Mobile…

Payments, RDC, P2P, Alerts & Security

Lee Wetherington, AAPDirector of Strategic Insight, ProfitStars®

@leewetherington

2 | © 2014 Jack Henry & Associates, Inc.®

Agenda

• Mobile Trends & Forecast

– Mobile Banking, Smartphones & Tablets

• 10 Things You Need to Know

– Mobile RDC/Prepaid/PFM: Opportunity & Threat

– 2P or Not 2P…That is the P2P Question

– Mobile Security to the Rescue After Target & HeartBleed

– Alerts: The Art & Science of Doing Them Right

– Mobile PFM: Onramp to Mobile Shopping, Finance & Payments

• Ethan & Liam’s First Foray into Mobile Banking

– And why we should all be worried.


91% of U.S. Adults Own Mobile Phones

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Forecast of U.S. Adults’ Mobile Phone Adoption, 2014–2018

202 205

220

224

227 231

234 238

85% 85%

91%

94%

96%97% 97% 97%

75%

80%

85%

90%

95%

100%

-

50

100

150

200

250

300

2011 2012 2013 2014 2015 2016 2017 2018

Perc

enta

ge o

f U

.S. A

du

lts

wit

h M

ob

ile P

ho

nes

Mill

ion

s o

f U

.S. A

du

lts

U.S. adults with mobile phones (smoothed) Mobile phone adoption amoung U.S. adults online (smoothed)

Base: U.S. adults.© 2014 Javelin Strategy & Research

Actual Projected


Smartphone & Mobile Banking Adoption

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014Forecast of U.S. Mobile Phone and Mobile Banking Users, 2014–2018

202 205

220 224 227 231 234 238

58 68

95 108

119 130

140 149

91 105

141

160 172

179 185 189

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016 2017 2018

Mobile phone users (in millions) Mobile banking users in the last 12 months Smartphone owners

Base: U.S. adults with mobile phone.© 2014 Javelin Strategy & Research

Nu

mb

er o

f M

ob

ile P

ho

ne

Use

rs (

in m

illio

ns)

Actual Forecast


Smartphone Adoption Continues Rise

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Forecast of U.S. Adults’ Smartphone Adoption, 2014–2018

91 105

141

160 172 179 185

189

45%

51%

64%

71%

76%78%

79% 79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

25

50

75

100

125

150

175

200

225

2011 2012 2013 2014 2015 2016 2017 2018

Perc

enta

ge o

f U

.S. A

du

lts

wit

h M

ob

ile P

ho

nes

Mill

ion

s o

f U

.S. A

du

lts

Smartphone users (in millions) Smartphone users

Base: U.S. adults with a mobile phone.© 2014 Javelin Strategy & Research

Actual Projected


Smartphones Replace Feature Phones

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014U.S. Consumers’ Adoption of Smartphones and Feature Phones, 2011–2018

59%

52%

36%

29%24%

22% 21% 21%

45%

51%

64%

71%76%

78% 79% 79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016 2017 2018

Feature phone (only) adoption of U.S. adults with mobile phones

Smartphone adoption of U.S. adults with mobile phones


Perc

enta

ge o

f Mob

ile P

hone

Ow

ners

Actual Forecast


30% Consumers to Buy Smartphone

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Likelihood of Consumers Purchasing a Smartphone

13%

22%

19%

26%

29%

26%

22%

17%

17%

10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Allconsumers

Mobilebankers(past 12months)

Percent of Consumers

Definitely will buy Probably will buy Might or might not buy Probably will not buy Definitely will not buy

Q50. How likely are you to purchase a smartphone in the next 12 months?

September 2013, n = 1,285, 3,213.Base: Mobile bankers past 12 months, all consumers.

© 2014 Javelin Strategy & Research


Most Preferred Smartpone OS

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Consumers’ Preferred Smartphone Operating System

9%

16%

37%

38%

2%

10%

43%

45%

0% 10% 20% 30% 40% 50%

RIM BlackBerry OS (found in BlackBerryphones)

Microsoft Windows Mobile / Windows Phone7, 7.5, or 8 (found in some Nokia, HTC,

Samsung phones)

Apple iOS (found in iPhones)

Android OS (Google) (found in Google Nexus 4,Samsung Galaxy S3 / S4, HTC One, Motorola

Droid Razr phones)


2013

2012

Q51. In the next 12 months, if you were to purchase a smartphone which operating system would you prefer? Other/Not sure removed

September 2012 - 2013, n = 2,426 to 2,659.Base: All consumers.



Mobile Banking Jumped Sharply in 2013

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Mobile Banking Rates (in Past 90 Days) for Smartphone and Feature Phone Owners, 2009–2013

18%

18%

28%

26%

45%

0% 10% 20% 30% 40% 50%

2009

2010

2011

2012

2013

Percent of consumers

Q12. Please indicate the last time you conducted each of the following activities. Conducted mobile banking. A: Past 90 days or more recent.

June 2009 - July 2013, n varies: 2,928 - 2,924. Base: All consumers with a mobile phone and financial account.



of all mobile bankers are new


Half of All Mobile Adults in the U.S.

Will Be Mobile Banking This Year!

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Forecast of U.S. Adults’ Mobile Banking Adoption, 2014–2018

58

68

95

108

119

130

140

149

29%

33%

43%

48%

53%56%

60%63%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015 2016 2017 2018

Perc

enta

ge o

f U

.S. A

du

lts

Wit

h M

ob

ile P

ho

nes

Mill

ion

s o

f U

.S. A

du

lts

U.S. adults using mobile banking in past 12 months % of U.S. adults using mobile banking in past 12 months


Actual

Projected


Frequency of Mobile Banking Activities

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Reported Number of Transactions per Month for Various Mobile Banking Activities

5%

5%

5%

6%

7%

7%

8%

10%

10%

12%

17%

18%

4%

6%

5%

5%

7%

8%

7%

8%

9%

11%

15%

16%

18%

37%

34%

30%

54%

52%

26%

36%

46%

55%

50%

55%

39%

27%

34%

35%

21%

17%

32%

26%

21%

13%

11%

6%

34%

25%

22%

24%

12%

16%

26%

19%

14%

9%

7%

4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Load a prepaid card with money

Use mobile deposit service

Use an ATM locator

Transfer funds to other individuals

Transfer funds between accounts

Pay bills

Receive push notifications

Receive text message alerts

Receive email alerts

View bank account statements

Monitor recent transactions

Check balances

Percent of Mobile Bankers

20 or more times 10 to 19 times 1 to 9 times 0 times or less than 1 Never

July 2013, n = 1,368.Base: Mobile bankers in the past 12 months.


Q20. In a typical month, how many times do you personally perform the following activities using your mobile device, that is, when mobile banking?


All Top 25 FIs Offer iOS & Android Apps

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014Mobile Banking Offerings for Web, App, Text, and Triple Play, by FI Size

17%

42%

60%

72% 73%

67%

84%88%

92%100%

72% 74%

80%84%

88%

44%

53%

64%

76% 77%

28%

40%

54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013

Perc

ent o

f fin

anci

al in

stitu

tions

Mobile bankingtriple play

Downloadablesmartphone app

Browser-basedmobile site

SMS text messagebanking

Downloadabletablet app

June 2009 - August 2013, n = 18 - 26Base: All financial institutions reviewed.



71% MB’rs: Digital Banking is Sufficient

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Sufficiency of Online and Mobile Banking for Banking Needs

Strongly disagree2% Somewhat disagree

6%

Neither disagree nor agree21%

Somewhat agree43%

Strongly agree28%

Mobile or Online Banking Is Sufficient for My Banking Needs

Q18A Please rate each statement on how best each statement describes you.

July 2013, n=1,399Base: Mobile bankers past 12 months



…But 30% Prefer Branches

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014Perceptions by Mobile Bankers in Past 90 Days Who Prefer the Branch for Banking

Strongly agree 12%

Somewhat agree 19%

Neither agree nor disagree

29%

Somewhat disagree23%

Strongly disagree17%

Q18A. Here are different statements that some people may use to describe themselves. Please rate each statement on how best each statement describes you.

I prefer to go to a branch for all my banking needs

July 2013, n = 1399.Base: Mobile bankers past 90 days.



Perceptions of Mobile Banking

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014Perceptions of Mobile Banking, Moneyhawks vs. All Consumers With Financial Accounts

30%

31%

32%

32%

32%

47%

51%

51%

51%

50%

0% 20% 40% 60% 80% 100%

Has a mobile app that gives me accessto all my banking needs

Has a mobile app that is easy to use

Gives me the mobile bankingcapabilities I am looking for

Has a mobile website that is easy to use

Has a mobile website that gives meaccess to all my banking needs


Moneyhawks

All consumers

Q21. On a scale of 1 to 10 where 1 means 'Strongly Disagree' and 10 means 'Strongly Agree' , please rate how well each of the the following statements describes your experience. 9 and 10 (strongly agree) displayed.

October 2013, n = 1,647, 5,635.Base: Moneyhawks, all consumers with a financial account.



Satisfaction with MB Varies Widely

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014Proportion of Mobile Bankers Extremely Satisfied with Mobile Banking at Top FIs

37%

38%

39%

39%

41%

42%

46%

46%

49%

50%

51%

51%

51%

51%

52%

52%

53%

58%

65%

76%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Comerica

Sovereign Bank

Regions

BBVA Compass

U.S. Bank

Fifth Third Bank

M&T

Key Bank

Wells Fargo

Citizens

PNC Bank

Chase

Bank of America

Citibank

SunTrust Bank

Capital One

TD Bank

BB&T

Navy Federal Credit Union

USAA

Percent of Mobile Bankers

Q27. Please indicate how satisfied you were with your experience conducting each of the following activities (mobile banking) at (...) on a 1-10 scale. Top 2 - extremely satisfied - shown only.

Sept. 2013 n = Varies, 161- 8,732Base: Mobile bankers by bank.



Roadblocks to MB Adoption: Concerns

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Consumer Concerns About Mobile Banking (2011–2013)

5%

3%

8%

5%

12%

22%

17%

41%

45%

4%

2%

6%

6%

14%

20%

17%

40%

44%

3%

3%

4%

4%

6%

11%

14%

25%

31%

41%

0% 10% 20% 30% 40% 50%

It is not offered by my bank or creditunion

Setup process to register accounts

Cost or hidden fees from my bank forusing the service

Potential limitations in wireless plans

My bank offers it but I don't haveaccess to it

The cost of data access on my wirelessplan

Too difficult to see on my phone'sscreen

I prefer dealing with people

I don't see the value of mobile banking

Security of mobile banking


2013

2012

2011

Q14: You indicated you do not use mobile banking. For what reasons do you not use mobile banking? (select up to three) Select responses shown.

June 2009 — July 2013, n varies: 2,010 - 2,367.Base: All consumers with mobile phones who have mobile

banked more than 12 months ago or never.© 2013 Javelin Strategy & Research

Response not available 2011 - 2012


…if you’re on a

budget, the key

is know what to

support.


Apple, Samsung Top Manufacturers

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014Consumers’ Smartphone Manufacturers

1%

2%

4%

7%

8%

9%

24%

41%

0% 10% 20% 30% 40% 50%

Hauwei

Nokia

RIM BlackBerry

Motorola

HTC

LG

Samsung

Apple (iPhone)

Percent of Smartphone Owners

Q7A. Again, thinking of your primary smartphone, the one you use most often, which company manufactures the smartphone?

July 2013, n = 1948.Base: Smartphone owners.



Verizon & AT&T Dominate Wireless

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Mobile Consumers’ Primary Wireless Service Provider

9%

1%

2%

3%

7%

10%

11%

27%

30%

0% 10% 20% 30% 40% 50%

Other

US Cellular

Cricket Wireless

Metro PCS

Tracfone/Net10

T-Mobile

Sprint

AT&T

Verizon(including Alltel)

Percent of Mobile Phone Owners

July 2013, n = 3,052.Base: Mobile phone owners.


Q51. Which of the following is your primary wireless service provider?


Windows to Pick Up Blackberry Losses

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014Forecast of U.S. Adult Smartphone Owners by Device OS Type, 2014–2018

37%

48%47% 46% 46% 46% 46% 46%

28%

12%

4%

2% 1% 1% 1% 1%

29%32%

45%45% 45% 45% 45% 45%

5% 4%7%

8% 9% 9% 9%

0%

10%

20%

30%

40%

50%

60%

2011 2012 2013 2014 2015 2016 2017 2018

Base: U.S. adults with a smartphone.© 2014 Javelin Strategy & Research

Per

cen

tage

of

Smar

tph

on

e O

wn

ers

Actual Forecast

8%


Tablet Adoption Outpaces Smartphones

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Forecast of U.S. Mobile Adults Who Use Tablets, 2014–2018

17

42

84

118

141

155

164170

9%

20%

38%

53%

62%

67%70% 72%

0

20

40

60

80

100

120

140

160

180

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016 2017 2018

Perc

enta

ge o

f U

.S. A

du

lts

Wh

o O

wn

Tab

lets

Mill

ion

s o

f U

.S. A

du

lt T

able

t U

sers

U.S. adult tablet users Tablet users as a percentage of U.S. adultsBase: U.S. adults.



iPads/Androids Only Tablets that Matter

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Forecast of Tablet Owners by Device Operating System, 2014–2018

19%

44%

44%46% 47% 47% 47% 47%

12%

4%

1%0% 0% 0% 0% 0%

51%

41%

50% 50% 50% 50% 50% 50%

18%

4%3% 2% 2% 2% 2%

0%

10%

20%

30%

40%

50%

60%

2011 2012 2013 2014 2015 2016 2017 2018

Perc

enta

ge o

f Ta

ble

t O

wn

ers

(To

tal =

10

0%

)

Base: U.S. adults with tablets.© 2014 Javelin Strategy & Research

Actual Forecast

10%


Kindle Fire Will Lose Ground to

Other Android Tablets

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Android OS Forecast, Kindle Fire vs. Other Android, 2014–2018

44% 44%46% 47% 47% 47% 47%

10%

24%

27%28% 29% 29% 30%

26%

19%

17%16% 15% 15% 15%

0%

10%

20%

30%

40%

50%

2012 2013 2014 2015 2016 2017 2018

Perc

enta

ge o

f U

.S. A

du

lts

Wh

o O

wn

Tab

lets

Android-All (Other + Kindle Fire)

Android-Other

Android-Amazon Kindle Fire only

ForecastActualBase: U.S. adults with tablets.



Most Popular Mobile Activities

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014Activities Performed on Mobile Devices

17%

23%

26%

28%

41%

42%

43%

43%

44%

47%

51%

70%

77%

91%

0% 20% 40% 60% 80% 100%

View documents presentations or spreadsheets

Make purchases

Financial management

Watch videos or live TV

View or update social networks

Play music

GPS or geolocation

Downloading apps

Play games

Browse web pages

Read or write e-mails

Take photos

Text messaging (SMS)

Make phone calls


Q8. Which of the following mobile phone activities do you do?

July 2013, n = 3,052Base: All consumers with a mobile phone.



Tablet Ownership Rose from 8% to

43% of Mobile Population in 2 Years

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Mobile Devices and Services Owned 2011–2013

3%

14%

12%

8%

72%

61%

35%

59%

2%

16%

17%

21%

69%

63%

69%

61%

0%

16%

26%

43%

70%

70%

75%

86%

0% 20% 40% 60% 80% 100%

I do not own or use any of the aboveproducts or services

iPod Touch

E-reader

Tablet

A desktop computer

A wireless notebook / laptop /netbook

A digital camera

Broadband (high speed) Internetaccess


2013

2012

2011

Q5. Please select the products and services that you personally own and use from the list below.

June 2011 — July 2013, n varies: 3,180, 3,492, 3,285Base: All consumers with mobile phones .



60% MB’ers Don’t Need Branches

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Perception by Mobile Bankers (in Past 90 Days) That Digital Banking Replaces Branch Banking

Strongly disagree3%

Somewhat disagree12%

Neither disagree nor agree22%

Somewhat agree40%

Strongly agree23%

Online or mobile banking allows you to do everything that you would be able to do in a bank branch

Q18A. Here are different statements that some people may use to describe themselves. Please rate each statement on how best each statement describes you.

July 2013, n = 1,331Base: Mobile bankers past 90 days

© 2014 Javelin strategy & Research


App Banking Preferred Method

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Methods That Consumers Use to Conduct Mobile Banking, 2009–2013

68%

61%63%

55%

67%

20%

26%

19% 20%

27%20%

24%

31%

50%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2009 2010 2011 2012 2013

Perc

ent

of

con

sum

ers

Mobile browser

SMS text messaging

Mobile app

Q19: Which of the following methods do you personally use to conduct mobile banking?

June 2009 — July 2013, n varies: 1,567 - 2,367 Base: All consumers who have mobile banked in the past 12 months.



Over Half of Tablet & Smartphone

Owners Are Using Mobile Banking

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Mobile Banking by Tablet Owners, Smartphone Owners & Mobile Consumers

53%

1%

1%

3%

7%

36%

34%

1%

1%

4%

9%

51%

35%

1%

2%

3%

9%

51%

0% 10% 20% 30% 40% 50% 60%

Never

More than 12 months ago

In the past 12 months

In the past 90 days

In the past 30 days

In the past 7 days


Tablet owners

Smartphone owners

Mobile consumers

July 2013, n = varies; 1,291 - 2,948.Base: Tablet owners with a financial account,

smartphone owners with a financial account, all mobile consumers with a financial account.


Q12. Please indicate the last time you conducted each of the following activities. Conducted mobile banking.


Preferred Tablets (Consumers)

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Consumer-Preferred Tablet Operating System

1%

3%

2%

4%

18%

21%

50%

0% 10% 20% 30% 40% 50% 60%

Other

Don't know / Not sure

BlackBerry (Playbook)

Windows

Amazon Kindle Fire (Android)

Other Android tablets (Not Kindle Fire)

Apple iOS (iPad)


July 2013, n = 1,332.Base: Tablet owners.


Q9. Earlier you mentioned that you own a tablet. Please indicate the operating system installed on your tablet. If you own multiple tablets, please answer about the tablet that you use most often.


“Unlimited” Data Plans Growing

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Data Plans of Mobile Consumers, 2011–2013

0%

1%

6%

12%

18%

16%

13%

33%

1%

1%

6%

9%

17%

18%

14%

35%

4%

6%

6%

15%

16%

17%

37%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Other

Don't know

Unlimited data only

Voice plan only

Under contract, with neither unlimited data nor text

Unlimited text only

Prepaid or pay-as-you-go plan

Both unlimited data and text


2013

2012

2011

July 2011 - 2013, n = varies: 3,052, 3,180.Base: All mobile consumers.


Q52. What type of wireless plan (e.g., voice, data and text) do you currently use?


Mobile Bankers Prefer Apps, Unless

They’re Using a Phone that Sucks

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Consumers’ Preferred Method to Conduct Mobile Banking (by Smartphone Type)

27%

46%

44%

24%

27%

67%

79%

77%

63%

72%

70%

63%

76%

76%

78%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Mobile bankers

Windows Phone bankers

BlackBerry phone bankers

Android phone bankers

iPhone bankers

Percent of mobile bankers

Mobile app

Mobile browser

SMS text

July 2013, n = varies; 51 - 1,368.Base: Mobile bankers by smartphone OS.


Q19. Which of the following methods do you personally use to conduct mobile banking?


18% Consumers Plan to Buy Tablet

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Likelihood of Consumers Purchasing a Tablet

6%

4%

9%

12%

10%

15%

27%

27%

28%

31%

31%

29%

25%

28%

18%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Allconsumers

Non-tabletowners

Mobilebankers(past 12months)


Definitely will buy Probably will buy Might or might not buy Probably will not buy Definitely will not buy

Q53. How likely are you to purchase a tablet in the next 12 months?

September 2013, n = varies: 1,285 - 3,213.Base: Mobile bankers past 12 months, non tablet owners, all

consumers.© 2014 Javelin Strategy & Research


iPad Most Popular for Future Purchases

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Mobile

Bankin

g,

Ta

ble

t and S

mart

phone F

ore

cast

2013-2

018:

Sm

art

Devic

e A

doptio

n D

rives M

obile

Bankin

g B

oom

”; M

ary

Monahan &

Danie

l V

an D

yke;

Marc

h 2

014

Consumers’ Preferred Tablet Operating System

6%

21%

23%

17%

33%

1%

14%

18%

23%

44%

0% 10% 20% 30% 40% 50%

BlackBerry (Playbook)

Amazon Kindle Fire(Android)

Windows

Other Android tablets (NotKindle Fire)

iOS (iPad)


2013

2012

September 2012 - 2013, n = 2,311, 2,725.Base: All consumers.


Q54. In the next 12 months, if you were to purchase a tablet which operating system would you prefer?Other/Not sure removed.



Mobile RDC is the on-ramp

to “photo banking” and key

to FIs’ migration of 55M

online bankers who have yet

to use mobile banking.


Photo Banking

• Mobile RDC

• Mobile RDC loads of prepaid cards

• Mobile billpay (photo billpay and “add payees”)

• Mobile document/application submission

• Mobile financial product research

• Photograph credit cards to make online payments

• Eye and facial recognition for authentication

• Mobile shopping, price comparison…POS payments


Consumers Use Smartphones to Shop

SO

UR

CE

: Javeli

n S

trate

gy &

Researc

h;

“T

en

Tre

nd

s f

or

Fin

an

cia

l S

erv

ices i

n 2

014:

Big

Data

, B

ig C

lou

ds

, B

ig M

ob

ile, B

ig B

roth

er”

; Jan

ua

ry 2

014

Consumer Use of Smartphone for Shopping Activities, Past 12 Months


…but less than 10% of

consumers have ever

made a mobile-phone

based purchase at the

point of sale. (McKinsey 2014)



PREDICTION: Beacons

will transform the in-store

shopping experience and

shake up the mobile

payment tech wars.


Mobile Payment Tech Wars

• NFC chip-based secure element

– Still complicated, onerous, carrier-controlled

• Host Card Emulation (HCE)

– “Cloud-based NFC” per Google Android OS 4.4

• Bluetooth Low Energy (LE)

– iBeacons per all Apple iOS devices since iPhone 4S


Digital Wallets = Online + POS + Mobile


Wallet Review

Apple Passbook

Success

Google Wallet

Success

LevelUp

Success

ISIS

Success


Wallet Review, cont’d

Mastercard

Success

MCX

Success

PayPal

Success

Square Wallet

Success


What MCX Says…

• MCX is its own network

• MCX consumer/transaction data is sacred

• MCX will be a low-cost acceptance network

• MCX would be mobile only (no cards)

• MCX would issue its own accounts

• MCX would provide more than a way to pay

– Offers, promotions, discounts

• MCX would be exclusive

– MCX merchants will NOT accept other mobile

payments

Sourc

e:

ww

w.p

ym

nts

.com

; K

are

n W

ebste

r’s “

MC

X &

Th

e G

iant

Paym

ents

Netw

ork

”

http://www.pymnts.com/


MCX’s Massive Challenges

• Cost to build and operate a payments network

– Until MCX achieves critical mass, it will have to support

all existing payment methods

• Time to scale a new payments network

– We’re still using a lot of cash after 3000 years.

– Payments habits hard to break.

• Business model for MCX

– Charge consumer, each other, third parties?

• Impact of Judge Leon’s ruling on Reg 11 (Durbin)

– Cheaper debit interchange; less incentive for MCX

• Tenability of “exclusion” provision

Sourc

e:

ww

w.p

ym

nts

.com

; K

are

n W

ebste

r’s “

MC

X &

Th

e G

iant

Paym

ents

Netw

ork

”

http://www.pymnts.com/


Wallet Review, cont’d

Starbucks Wallet

Success

Visa V.me

Success


“Average smartphone owner in the U.S. is not comfortable using a mobile wallet that would share personal information with merchants.”

First Data Advanced Payments Report (2013)


Mobile Payments: Things We Know

• Limited consumer adoption

– Less than 6% of U.S. consumers

• 50% of young and wealthy open to mobile payments (MasterCard 2012 Study)

• Merchants skeptical of NFC

– Costs but no clear benefits (NFC = Card Not Present?)

– EMV POS deadlines loom, but mobile NFC acceptance still at merchants’ discretion after EMV-enablement

– What if NFC becomes obsolete when POS disappears?

• Fragmented eco-system

– Lots of players; no standards


mobile payments startups


Consumer Confusion

Fragment-ation

Security Concerns

Consumer Confusion


Do consumers

need or want a

different way to

pay?


NO!


So why will

consumers need

or want a mobile/

digital wallet?


©2011 Jack Henry &

57

Do I have my wallet?

Cash, debit, or credit?

Do I have enough cash?

Rewards or cash back

on one of my cards?

Which cards do they

accept here?

What’s my balance on my

cards, checking account?

Will my card be rejected?

Don’t want to be rejected in

front of this beautiful woman.

How’s my breath?


Which Card Should I Use to Buy?


April 15, 201459


So, why are

mobile wallets

such a big deal?


Mobile/digital wallets affect

where you shop,what you buy, and

how much you pay.



Prepaid is unhinging

money storage from

traditional checking.


GPR Prepaid Debit Cards

• Adoption grew 50% between 2008 and 2013

• Nearly 1 in 4 consumers have one

• Prepaid cardholders are now mainstream

consumers (not just low-income)

– Cardholders skew younger…

• Gens X & Y use prepaid to manage finances

– …but are represented equally among income levels

• 90% of prepaid cardholders have DDA accounts

• Load volumes will grow 20% annually thru 2016

• 5 issuers account for 75% of prepaid load volume

SO

UR

CE

: A

ite

Gro

up’s

“P

repaid

Debit C

ard

Realit

ies”;

Novem

ber

2013


Annual Revenue/ Active Cardholder

• FIs: $79.81

• Internet: $71.85

• Retail: $40.06

• Blended: $51.89

• For every $100 loaded on a prepaid card, the

issuer can expect to generate $1 of revenue

SO

UR

CE

: A

ite

Gro

up’s

“P

repaid

Debit C

ard

Realit

ies”;

Novem

ber

2013





Mobile PFM is the

segue from mobile

banking to mobile

shopping.


April 15, 201472


MB’ers Want PFM (Can Get It Elsewhere)

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Levera

gin

g a

n O

mnic

hannel

Appro

ach t

o D

rive $

1.5

B in

Mobile

Bankin

g C

ost

Savin

gs”;

July

2013

Preferred Source for PFM for Online Bankers (Past 90 Days) vs. Mobile

Bankers (Past 90 Days) vs. All Consumers

April 15, 2014

©2011 Jack Henry &

74


Moven is about “context, low-

friction, and a powerful real-time

feedback loop.”-- Brett King, Founder & CEO, Moven

April 15, 2014

©2011 Jack Henry &

76



Mobile PFM is the

segue from mobile

banking to mobile

finance and loans.


April 15, 201481

“Activity-Based Marketing”

e.g., USAA Auto Circle App


“If FIs can’t leverage their unique advantage as trusted entity for consumer mobile payments, they risk being… a utility that provides the transactions.”

FRBs of Boston & Atlanta (5/2/13)

“U.S. Mobile Payments Landscape –Two Years Later”


Consumer Perceptions: Mobile Wallets

• 65% stated the most valued service is the ability to make better payment choices (Carlisle & Gallagher)

• 57% say second most valued service is the management of receipts

• Consumers interested in mobile wallets would consider alternative players for banking services

• 8 in 10 would consider using PayPal if it offered banking

• 6 in 10 would consider using Google

• 6 in 10 would consider using Apple

Source: Carlisle & Gallaher Mobile Wallet Reality Check: How Will You Stay Top of Wallet?



Payments are

friction!


And that’s why

we must make

them disappear!


Evolution of Mobile Payments

Mobile

Digital

Invisible


From Mobile to Digital…

v. 1 v. 3


…and from Digital to Invisible

v. 3




User Names & Passwords Are Done


…and signatures are worthless!


Advent of EMV

will boost online

CNP fraud rates.


For Consumers, Familiarity = Efficacy

When it Comes to Online Authentication

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Onlin

e a

nd M

obile

Reta

il P

aym

ents

Auth

enticatio

n:

Pre

ventin

g

Fra

ud in

the A

ge o

f D

ata

Bre

aches a

nd M

alw

are

”; J

uly

2013;

Alp

honse P

ascualand S

ara

h M

ille

r

84%

74%

70%

69%

69%

66%

58%

58%

44%

29%

20%

22%

25%

22%

15%

13%

0% 20% 40% 60% 80% 100%

Biometric identification

One-time password

Geo-location

EV SSL

Dynamic security questions

Enter an onscreen PIN

Image you previously selected is always displayed at login

Static security questions

Familiar

Unfamiliar

January 2013, N = varies 1,048 to 4,445 Base: Consumers familiar or unfamiliar with

specific online retail authentication solutions.© 2013 Javelin Strategy & Research

Q23: In your opinion, please rate the effectiveness of each of the following methods at protecting your information when you are paying for a purchase online (on a scale of 1 to 5 where 1 is not at all effective and 5 is extremely effective). Very to extremely effective

% of consumers

Authentication Solution Effectiveness Perceptions by Consumer Familiarity


Who Do Consumers Trust w/ Biometrics?

Businesses and Institutions That Consumers Trust With Biometric Information


Fingerprint scan is 3-to-1

most preferred form of

biometric authentication

among consumers.


Consumer Biometric Preferences

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Bio

metr

ics in

Bankin

g &

Paym

ents

:

Vers

atile

Voic

e F

aces A

n A

pple‐L

ed F

ingerp

rin

t R

evolu

tio

n’; J

anuary

2014

15%

0%

3%

5%

6%

11%

29%

31%

0% 5% 10% 15% 20% 25% 30% 35%

I would not use any of these methods

Other

Palm (including hand geometry and veinanalysis)

Voice

Facial recognition

Eye (including iris, vein mapping andretina)

I do not have a preferred biometricauthentication method

Fingerprint


Q38. Which of the following biometric methods would you most prefer to use to authenticate your identity online?

October 2013, n= 3,213Base: All consumers.


Biometric Solution Preference for Online Use Among Consumers


…but most don’t yet have access to

fingerprint scanners on their devices

Biometric Capture Device Access Among All Consumers

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Bio

metr

ics in

Bankin

g &

Paym

ents

:

Vers

atile

Voic

e F

aces A

n A

pple‐L

ed F

ingerp

rin

t R

evolu

tio

n’; J

anuary

2014


Privacy Top Concern with Biometrics

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Bio

metr

ics in

Bankin

g &

Paym

ents

:

Vers

atile

Voic

e F

aces A

n A

pple‐L

ed F

ingerp

rin

t R

evolu

tio

n’; J

anuary

2014

1%

2%

2%

4%

4%

5%

15%

20%

22%

25%

0% 5% 10% 15% 20% 25% 30%

Other

Seamless integration with appor website

Integrated with mobile device

Integrated with desktop orlaptop PC

No additional hardwarerequired

Speed

Ease of use

Cannot be replicated

Accuracy

Privacy




Q37. Please rank the TOP THREE factors below in terms of how important they are to you when using biometric technologies to authenticate your identity online. Top rank shown.

Consumers’ Top Consideration in Using Biometric Authentication


88M Opened Accounts Online/Mobile

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Bio

metr

ics in

Bankin

g &

Paym

ents

:

Vers

atile

Voic

e F

aces A

n A

pple‐L

ed F

ingerp

rin

t R

evolu

tio

n’; J

anuary

2014

5%

7%

7%

7%

8%

12%

13%

18%

2%

2%

2%

2%

2%

3%

3%

3%

0% 5% 10% 15% 20% 25%

Educational account

Retirement account

Mortgage

Auto loan

Investment account

Savings

Checking

Credit card


Online Mobile

Q47: Did you apply to open any of the following accounts in the past 12 months?

March 2013, n= 5,641Base: All consumers.


38.3M

Total U.S. Adults

51.9M

37.5M

24.5M

22.4M

23.0M

21.5M

17.4M

Percent of Consumers Who Applied to Open Accounts in Past 12 Months



Biometrics could

boost perception

of mobile banking

security. SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Bio

metr

ics in

Bankin

g &

Paym

ents

:

Vers

atile

Voic

e F

aces A

n A

pple‐L

ed F

ingerp

rin

t R

evolu

tio

n’; J

anuary

2014


But, will biometrics

reduce friction and

increase banking

activity?



Hypothetically, no. Practically, yes.

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h;

“Bio

metr

ics in

Bankin

g &

Paym

ents

:

Vers

atile

Voic

e F

aces A

n A

pple‐L

ed F

ingerp

rin

t R

evolu

tio

n’; J

anuary

2014

11%

11%

11%

11%

12%

12%

12%

13%

17%

54%

69%

55%

66%

54%

59%

52%

75%

55%

36%

19%

33%

23%

35%

29%

35%

12%

28%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Palm biometrics (including hand geometry and veinanalysis)

3 or 4 digit security code printed on your credit or debitcard

Voice biometrics

PIN on your credit or debit card

Facial recognition biometrics

A single use password sent to your mobile device

Eye biometrics (including iris, vein mapping and retina)

Account username and password

Fingerprint biometrics


Increase in frequency No Effect Decrease in frequency



Q40. What would be the effect on the frequency of your online banking activities if you were required to use the following methods to authenticate your identity during an online banking session?

Consumer Propensity to Change Online Banking Behavior Due to Authentication Types Including Biometrics


So, are smartphones safe phones?

• It depends on:

• The operating system

– iOS (not jailbroken!) is safer than Android

• The access method

– Apps (from certified app stores!) are

safer than mobile browsers

• Additional security factors

– Other security elements inherent in mobile

phones can increase security for both

mobile and non-mobile transactions



Mobile alerts are

key to security,

growth, and

monetization of

mobile banking.


Mobile Alerts

• Despite sluggish growth of adoption, profitable

customers crave alerts more than consumers overall.

– Moneyhawks, mobile bankers, loyal online bankers, Gen Y,

and women

• 5 most valuable alerts to consumers

– Account status changes

– Unusual transactions

– Foreign transactions

– Overdraft warnings

– Bill reminders

• Email alerts most popular, but text alerts growing faster

– Push notifications and PFM alerts will fuel future growth

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser


Behavioral Consumer Segments

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser


Disconnect: 6.5% Growth Rate Belies

Consumers’ Appetite for Alerts

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser

50

74

79

84

90

96

103

29%

37%

46%

28%

34%

39%

10%

18%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

10

20

30

40

50

60

70

80

90

100

110

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Per

cen

t o

f C

on

sum

ers

Mill

ion

s o

f O

nlin

e U

.S. A

du

lts

Millions who received financial alerts (both SMS or email)

Percent who received an SMS or email alert in the past 12 months

Percent who received an email alert in past 12 months

Percent who received an SMS alert in the past 12 months


Actual Forecast

Javelin Forecast: Adoption of Email and Text Alerts (2014-2018)


Moneyhawks Receive Most Push

Notifications

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser

8%

3%

15%

4%

0%

5%

10%

15%

20%

25%

Moneyhawks All consumers

Monthly Weekly

Q18: Please indicate the last time you conducted each of the following at your primary FI: Received a push notification on your mobile app; past 7 days and past 30 days shown

March 2013; n= 1,064, 5,641Base= All consumers; all Moneyhawks


23%

7%

Per

cen

to

f C

on

sum

ers

Received Push Notification in Past 30 Days (Moneyhawks)


Big Banks Lead in Alerts, Engagement

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser

39%

34%35%

21%20%

26%28%

16%

19%

30%

24%

28%

26%

13%

17%

21%

15%

7%

13%

17%

23%21% 21%

12%

15%17%

11%

8% 8%

13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Bank ofAmerica

Chase Citibank Wells Fargo BB&T Capital One PNC SunTrust U.S. Bank USAA

Email Text Push notification

Q18: Please indicate the last time you conducted each of the following at your primary FI: Received a push notification on your mobile app; received a financial alert by email/SMS; within past 30 days shown

October 2013; n= varies 8,732Base= All banked consumers


Per

cen

to

f C

on

sum

ers


Big Banks Outpace Smaller Banks

in Monthly Alert Adoption

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser

36%

22%

18%

22%

26%

17%

10%

7% 7%

11%11%

4%3% 3%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Giants Regional banks Community banks Credit unions All consumers

Email alert Text alert Push notification

Perc

ento

f Con

sum

ers

Q18: Please indicate the last time you conducted each of the following at your primary FI: Received a push notification on your mobile app; received a financial alert by email/SMS; within past 30 days shown

March 2013; n= varies 455 to 5,538Base= All banked consumers; banked

consumers with smartphones© 2013 Javelin Strategy & Research

Received Financial Alerts in Past 30 Days (By Size of FI)


PFM Alerts: Info, Insight, Advice

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser

PFM Status

• "We want you to know.” Straightforward factual reporting, notifications of events, and status updates – without analysis or insight added.

PFM Insight

• “You decide." Data analysis, comparisons to peers, trend information, and forecasting. These alerts can use "gamification" techniques to spur self-exploration.

PFM Advice

• "We recommend." A fiduciary approach to alerts that delivers recommendations for action, personalized coaching, and incentives designed to influence customer behavior.

a e trate esear


Consumers Value Security Alerts Most

SOURCE: Javelin Strategy & Research: “Financial Alerts Forecast 2013:

Security + Personal Finance = ROI”; December 2013; Mark Schwanhausser

a e trate esear

Tier 1 Rank of Extremely/Very Valuable Financial Alerts (All Consumers)


Perceived Value of Tier 1 Alerts

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser

7%

35%

58%

Value all of the Tier 1 alerts 71 million adultsValue at least one of the

Tier 1 alerts118 million adults

Value none of the alerts14 million adults

Q42-Q44: Many banks and credit unions offer a variety of financial alerts. Please rate how valuable the following types of a erts are to ou w ere “ ” represe ts “Extreme a uab e” a d 5 represe ts “Not at a a uab e.” Top s ow .

March 2013; n= 5,641Base= All consumers


1 in 3 Consumers Value All 5 Tier-1 Alerts


Tier 2 Alerts: Security, PFM & Deals



a e trate esear



Tier 3: Mundane, Less Time Sensitive



a e trate esear



Tier 4 Alerts: Privacy Triggers for Some



a e trate esear



Moneyhawks: Big Appetite for All Alerts

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser


Young / Women: More Demand for Alerts

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser


3 Security Alerts Essential to All

SO

UR

CE

: Javelin

Str

ate

gy &

Researc

h:

“Fin

ancia

l A

lert

s F

ore

cast 2013:

Security

+ P

ers

onal F

inance =

RO

I”; D

ecem

ber

2013;

Mark

Schw

anhausser


The Bottom Line

• Streamline most frequent mobile banking transx– No login required to see balance or latest transx

• Target mobile investments to most widely adopted and growing devices and OS’s– OS’s: iOS and Android

– Phones: Apple iPhone and Samsung

– Tablets: iPad, Kindle (short term), Android tablets

• Apps are the way to go: smartphone & tablet

• Prioritize alerts to address security fears

• Offer mRDC and MPFM for segue to mobile payments

• Opportunity cost of inertia will be substantial


Lee Wetherington, AAP

[email protected]

http://discover.profitstars.com/leewetherington

@leewetherington

http://www.linkedin.com/in/leewetherington

Documents

All Things Mobile… - Sitemason Things Mobile TBA Wetherington...All Things Mobile… Payments, ... 2011 2012 2013 2014 2015 2016 2017 2018 lts ones U.S. adults with mobile phones