The consumer shift to mobile continues to reduce service costs for financial institutions but not everyone is eager to jump on board. Chase cites a cost of 65 cents for each teller deposit vs only 3 cents using mobile but 35 percent of consumers use direct deposit for all checks, 31 percent prefer depositing checks in person and another 22 percent worry about the security of mobile deposit. Javelin detailed these adoption roadblocks in a September 30 webinar titled "Connecting the Dots with Mobile Imaging to Create a Full Mobile Banking Experience."
Big banks have led the way in mobile deposit use, with Bank of America (44% of consumers), Citibank (44%) and Chase (35%) all surpassing the 28 percent adoption rate across all consumers. While 38 percent of big bank customers utilize mobile deposit, only 18 percent of community bank and 16 percent of credit union customers do, placing these institutions at a significant disadvantage in terms of service costs. Predictably, the Moneyhawk, Mobile first and Gen Y customer segments lead in mobile deposit use and Javelin encourages FIs to target them with messaging to attract them to other mobile imaging services.
Javelin advises FIs to build an end-to-end mobile banking experience where imaging is used for authentication and enrollment, mobile deposit, mobile balance transfers, mobile photo bill payment, mobile funding, purchasing and receipt organization. And FIs have all the more incentive to do so as "mobile imaging services are having an increasingly positive impact on bank selection," said Mary Monaghan, Research Director of Mobile for Javelin Strategy & Research. 38 percent of consumers conveyed interest in a service that would allow them to find competitive rates on credit cards by snapping a photo of their credit card statement; 36 percent were interested in a service that would allow them to take a photo of their driver's license or passport to verify their identity (authentication) when opening an account through a mobile app. "This growing demand shows you that FIs that bring out these types of services will enjoy deeper consumer appreciation over time," said Monaghan.
During the webinar Javelin asked FIs which mobile imaging services would be of the greatest value to their customers:
While mobile photo authentication (63%) and bill pay (25%) generated the most interest among webinar attendees, Javelin noted that consumers are increasingly receptive to mobile receipting services - like American Express ReceiptMatch - that help users organize receipts for business or tax expenses. "29 percent of consumers said this would be a service they'd be likely to use," said Daniel Van Dyke, an analyst in Javelin's Mobile practice. "It's a service that resonates with consumers to a surprising degree." Gen Y was even more enthusiastic about this offering, with 42 percent indicating they would take advantage of mobile imaging for receipts.
Javelin research indicates that one in five consumers are likely to use mobile photo balance transfers to switch credit cards, with Hispanics (33%), Gen Y (30%) and African-Americans (29%) expressing the greatest interest. U.S. Bank was one of the first major institutions to roll out this feature as it courted younger customers. 42 percent of Gen Y consumers have also indicated that they would use mobile imaging for bill payment, another service that U.S. Bank rolled out to improve customer experience. However, only three of the top 30 retail financial institutions offer mobile imaging for bill payment according to Javelin's 2014 Mobile FI Scorecard.