Mobile Banking: Sizing the Global Market Opportunity

Jan 15, 2013, 08:04 ET from Reportlinker

NEW YORK, Jan. 15, 2013 /PRNewswire/ -- announces that a new market research report is available in its catalogue:

Mobile Banking: Sizing the Global Market Opportunity

The rapid rise of mobile banking offers providers an opportunity to improve relationships with customers and differentiate themselves from competitors. However, mobile adoption varies significantly across country markets. The report explores the market opportunity in countries with advanced, intermediate, or slow mobile banking adoption.Assess market opportunities and potential growth through Datamonitor's 2013 forecasts.Discover the top opportunities for mobile banking with consumer data from key global markets.Identify consumer demands from mobile banking by learning what activities consumers conduct through this channel.Boost mobile banking use by understanding core consumer objections.In all countries, with the exception of France, consumers consider mobile banking to have grown in importance over the last 12 months. 53% of current account holders globally view mobile banking facilities as essential to their account choice, up by more than 10% since 2011. Providers must act to meet this sharp increase in consumer demand.The use of mobile banking apps is forecast to grow in all markets in 2013. Rising smartphone penetration and consumers stating their intention to get a banking app are fueling this growth. Growth in the use of banking apps is important because apps offer consumers the best experience for banking through the mobile channel.How big are the mobile banking and banking app markets in key countries globally?By how much will usage of mobile banking apps grow in 2013?What are the benefits of creating a targeted mobile banking strategy?What differentiates markets with high levels of mobile adoption from those with intermediate or low adoption?What are the drivers of, and barriers to, mobile banking adoption?




•Introducing the opportunity - What is mobile banking?- Datamonitor's mobile banking segmentation model explained- The popularity of smartphones has made mobile the fastest ever growing banking channel- Consumers increasingly view mobile as an essential channel- The provision of mobile banking services is rapidly advancing- A targeted mobile strategy can bring a number of key benefits to providers

•Mobile will encourage greater engagement between banks and their customers - Mobile banking will reach a wider audience than online banking

- Non-digital channels will be freed up for more value-added activities

- Banks will need to deal with fraud quickly and effectively to reduce brand damage

- Soft benefits to bank brands are real if less tangible benefits of mobile banking

•The shift to mobile will allow banks to cut their operating costs… - …but only to a certain extent- Mobile will allow consumers extra options for dealing with their providers- Banking apps can provide banks with concrete benefits at all stages of mobile evolution - Banks can directly track the return from a banking app on both sides of the balance sheet

•Mobile has become another differentiator between providers' offerings - Mobile banking gives access to previously unreachable customers

- Time pressures on consumers increase the appeal of the mobile channel

- Mobile has the potential to overtake the online channel in banking

•Small screens create a new challenge for marketers, which must optimize content for this channel - Mobile allows consumers to react quickly- Mobile users are a captive audience- Location-sensitive information offers additional depth to the mobile channel


•Globally, countries represent three stages of mobile adoption - A sharp increase in consumer demand for mobile banking facilities means that providers must act

•App use will see significant growth in 2013

•The advanced markets show high mobile banking adoption and high app use - After a late start smartphones are booming in South Korea

- China's aspirational consumers have been quick to adopt mobile banking

•China has the most the mobile banking customers globally - The use of mobile apps will grow by 85% in 2013 in China - The Chinese market has jumped from branch to mobile- Mobile users in China are more affluent than the average consumer- The biggest players in China are already offering mobile services- China's busy consumers want to integrate banking into their everyday activities- Greater interaction with the mobile channel will strengthen consumer engagement- Security is a big concern for non-users of apps

•South Korea has seen rapid adoption of mobile banking - The growth in mobile banking apps in South Korea will continue to be rapid

- The use of apps is shaping the customer experience in South Korea

- Mobile appeals to the mainstream in South Korea

- South Korea's market leader offers apps for multiple operating systems

- South Korean mobile users are highly engaged with the mobile channel

- Location-based services will take off in South Korea

- Even technologically advanced consumers have concerns over security

•The intermediate countries need to refine their approach to mobile - Poland has the lowest use of banking apps globally- Mobile has the potential to overtake online in Brazil

•Poland is the leader in Europe but has the potential to grow further - The top Polish banks offer a range of apps and optimized websites

- The youth segment will grow the mobile channel in Poland

- Polish banks should be encouraging the use of mobile apps to improve the experience of this channel

- Increasing consumers' use of the mobile channel will strengthen engagement

- Low affinity with apps and a desire to spend time on finances is restricting the use of mobile banking

•Smartphone penetration is a limitation in Brazil - Mobile propositions need to be targeted at younger consumers- Apps are available to customers but they are not being used extensively- Mobile bankers in Brazil are more engaged with all banking channels- A quarter of mobile users are conducting three core activities in Brazil- The security of apps needs to be addressed

•Slow markets need to push the mobile channel with consumers - Germany has a relatively low smartphone penetration for a developed market

- Italian consumers are less engaged with their finances

•The German market has potential among a niche group of consumers - A high use of apps demonstrates a clear strategy for banks- Mobile appeals to more affluent consumers- The availability of apps from leading providers offers a good basis for channel growth- German consumers who do use mobile are engaged with this channel- Providers need to demonstrate that mobile is both secure and has a use

•Mobile may help Italian consumers to engage more with their finances - Mobile creates an opportunity to engage Italian consumers with their finances

- Growth in smartphone penetration is slow but will add new mobile app users

- App availability is affected by a dispersed current account market

- Italian consumers need to see the benefits of the mobile channel

- Italian mobile consumers need encouragement to use the channel more frequently

- Security is less of an issue in the Italian market


•Additional data•Methodology•Secondary sources•Further reading•Ask the analyst•Disclaimer


•Table: Datamonitor's mobile banking segmentation model, by country•Table: Smartphone penetration and forecasts, 2011-2013f, by country•Table: Income bands included in the Mobile Banking dashboard


•Figure: Datamonitor's segmentation of the mobile banking market•Figure: The use of mobile varies considerably on a global basis•Figure: Consumers have rapidly taken to the latest mobile communications devices•Figure: Smartphone ownership in the UK has risen nearly fourfold since the start of 2010•Figure: By 2015, consumers will conduct most day-to-day banking activities via mobile devices•Figure: Migration to mobile channels offers huge opportunities for reducing operating costs•Figure: Daily users of mobile banking in the UK are the most frequent users of all other channels•Figure: Mobile banking evolves in three different stages, each bringing additional benefits•Figure: Mobile banking offers far more on the revenue-generating side of the business than the cost minimizing side•Figure: In every country with the exception of France, the perception of the necessity of mobile banking has increased since 2011•Figure: The use of mobile apps will increase across all markets globally•Figure: China represents a large and engaged mobile banking population•Figure: Chinese mobile banking users have a higher product holding than non-users of this channel•Figure: The top four players in China dominate the current account market•Figure: South Korea is a global leader in mobile banking adoption•Figure: Mobile banking appeals to the mainstream consumer in South Korea•Figure: The market leader in South Korea for primary current accounts is Kookmin Bank•Figure: 3.2 million consumers in Poland need to be migrated from mobile websites to banking apps•Figure: The top six providers in Poland by market share account for more than two thirds of primary current accounts•Figure: Age is the biggest differentiator between mobile users and the population as a whole in Poland•Figure: There are 5 million consumers in Brazil who need to be persuaded to move from websites to mobile apps•Figure: Nearly two thirds of mobile users in Brazil are aged under 35•Figure: With a huge market share, the top banks in Brazil will be able to dictate the use of mobile banking•Figure: Low adoption of mobile in Germany creates a huge opportunity if providers can sell the benefits of mobile to consumers•Figure: German mobile banking customers are strongly skewed towards the youngest consumers•Figure: Sparkassen is the market leader in German current accounts and will have a significant effect on mobile uptake•Figure: Despite a relatively small smartphone population there is scope to expand the mobile channel in Italy•Figure: The market share of current accounts in Italy is fairly dispersed among providers•Figure: Italian mobile consumers are better distributed over different ages than in other markets

Companies mentioned

BNP Paribas SA, CMS Energy Corporation, General Mills, Inc., Hutchison 3G UK Limited, ING GROEP N.V., International Business Machines Corporation, Kookmin Bank, Royal Bank of Scotland Group PLC, Shanks Group plc, Woori Financial Group

To order this report:Online_Banking Industry: Mobile Banking: Sizing the Global Market Opportunity

Nicolas Bombourg
US: (805)652-2626
Intl: +1 805-652-2626

SOURCE Reportlinker