According to the third annual Global Consumers and Convergence survey, conducted by KPMG among over 4,000 consumers from 19 countries worldwide, in spite of the fact that almost 60% of the consumers globally responded that e-banking is very important for them, they are not ready to pay for it.
The results of the research revealed some surprising regional differences and drew a clear picture to banks of consumers’ future expectations. 53% of global consumers stated they are comfortable with the idea of using a mobile phone for financial transactions and 54% state that they are ‘at least somewhat likely’ to conduct banking through a mobile device in the next 12 months, that reflected a huge potential for banks to grow their market with mobile phone users.
Global Consumers and Convergence survey showed that currently just 19% of global consumers are conducting banking through a mobile phone. So, the majority of 81% acknowledges that m-banking is mainly the service to be paid for, and in the next place it’s a profitable and convenient facility.
44% of respondents who had not conducted banking through their mobile device, stated security and privacy to be the primary reason. And 32% of respondents globally, security or privacy protection was the most important factor, while for 20% of global consumers it appears to be the second most important factor.
The study also found that 6% of respondents globally say they are willing to pay to access online banking services from their mobile phone and 17% of respondents state they are willing to pay a limited amount.
As for the regional differences revealed, Asia is to be the region that is the most comfortable with m-banking with 23% using the service, claiming to be the region where banks can look to grow their mobile banking services fastest, make quick wins and gain new customers.
While in Asia only 36% of respondents are ‘not at all comfortable’ with using a mobile phone for financial transactions, in North America 66% are ‘not at all comfortable’
In the Middle East/Africa region, 67% of Saudis responded they were ‘very or somewhat comfortable’ with using a mobile phone for financial transactions but only 39% of South Africans said the same.
Concerning the age aspects, 75% of the over 65 age group is ‘not at all comfortable’ using a mobile phone for financial transactions, being one of the hardest to persuade to change their traditional banking methods, along with 55-64 age group, that are the most concerned with privacy and security at 51% each.
Thus, KPMG found m-banking to be a growth area for banks with huge potential, however, cost, security, privacy and other need to be improved.