866-997-4948(US-Canada Toll Free)

Mobile Financial Services - UK - February 2015

Published By :

Mintel

Published Date : Feb 2015

Category :

Banking

No. of Pages : 89 Pages


Although technology and innovation have added more digital channels in the financial services arena, these are not replacing the more traditional channels. People still value face-to-face interaction. Instead, they are additional requisites to customer service giving a more integrated, multichannel customer experience and keeping financial providers competitive.

Introduction
Report scope and definitions
Abbreviations

Executive Summary
Smartphone use and ownership
Three quarters of internet users now own a smartphone
Figure 1: Personal ownership of mobile phones, January 2012-October 2014
Figure 2: Household ownership of tablet computers, July 2012-July 2014
Mobile product development
Retail banking
More digital banks set to launch
Mobile payments
General insurance
Share dealing and investments
Consumer channel preferences in financial services
Online beats all other channels in financial services
Figure 3: Channels preferred for each financial activity, November 2014
General insurance is becoming an online-only purchase
Attitudes towards channels available in financial services
Figure 4: Attitudes towards channels available in financial services, November 2014
Use of financial mobile applications
Figure 5: Use of financial mobile applications as a proportion of all financial product owners, November 2014
Satisfaction with financial mobile applications
Figure 6: Satisfaction with financial mobile applications, November 2014
Mobile apps vs. websites in financial services
Figure 7: Consumer preferences between mobile apps and websites in financial services, November 2014
Concerns about smartphone use in financial services
Figure 8: Consumer attitudes towards smartphone use in financial services, November 2014
What we think

Issues and Insights
Tech-savvy Millennials still appreciate face-to-face interaction in financial services
The issues
The implications
Security vs. utility: which is more powerful?
The issues
The implications

Trend Application
Trend: Attention Economy
Trend: Help Me Help Myself
Futures Trend: Access Anything, Anywhere

Overview of Digital Trends – Smartphones and Tablets
Key points
Three quarters of internet users now own a smartphone
Figure 9: Personal ownership of mobile phones, January 2012-October 2014
Smartphone ownership is highest at the younger end of the market…
Figure 10: Personal ownership of smartphones, by age, September 2013 and October 2014
but smartphones continue to broaden their reach among over-65s
Tablets bridge the digital divide
Figure 11: Personal ownership of smartphones and tablets, by generation, October 2014
Figure 12: Household ownership of tablet computers, July 2012-July 2014
Online activities performed by device
Figure 13: Online activities performed in the past three months on a smartphone or tablet, October 2014

Mobile Product Development in the Market
Key points
Mobile in retail banking
RBS and NatWest allow card-free cash withdrawals through their app
HSBC, RBS and NatWest offer account opening services via their apps
Nationwide’s Impulse Saver creates saving spree
Lloyds Bank launches travel notification on its app
Barclays pilots its Mobile Cheque Deposit
Barclays ‘Digital Eagles’ train customers about digital technology
More digital banks set to launch
Mobile payments and wallet services
Paym enjoys a strong debut
Zapp widens partnerships in preparation for launch in the UK
Visa Europe to expand its V.me mobile wallet
Apple Pay is expected to launch in the UK in 2015
Mobile in the insurance industry
Motor insurance market
Renewals in only a few clicks
Telematics are the main source of innovation
Travel insurance market
Health insurance market
Mobile in the share dealing and investment market

Consumer Channel Preferences in Financial Services
Key points
Survey background
Online beats all other channels in financial services
Figure 14: Channels preferred for each financial activity, November 2014
A steady migration away from traditional channels
Personal contact is head-to-head with online banking when applying for a bank account…
while online dominates in the insurance market
What can insurance tell us about the “death of the bank branch”?
Millennials are most likely to use smartphones for daily banking…
Figure 15: Channels preferred for each financial activity, by age, November 2014
but also value personal contact when buying a new a product
Figure 16: Channels preferred for each financial activity, by age, November 2014 (continued)
Parents more likely to use mobile banking than non-parents
Figure 17: Preference for mobile and online banking, by presence of children in household, November 2014

Attitudes towards Channels Available in Financial Services
Key points
Consumers still wish for personal contact in financial services…
Figure 18: Attitudes towards channels available in financial services, November 2014
an attitude expressed most strongly by the older age groups
Figure 19: Selected attitudes towards channels available in financial services, by age, November 2014
Convenience is also important for the majority
Figure 20: Attitudes towards channels available in financial services, November 2014
Figure 21: Selected attitudes towards channels available in financial services, by age, November 2014 (continued)
Even digital natives worry about security online
Figure 22: Attitudes towards channels available in financial services, November 2014
Figure 23: Selected attitudes towards channels available in financial services, by age, November 2014
Millennials are the early adopters in financial services
Figure 24: Attitudes towards channels available in financial services, November 2014
Figure 25: Selected attitudes towards channels available in financial services, by age, November 2014

From Conservatives to Early Adopters: Segmenting the Online Population
Key points
Market split fairly evenly among the four target groups
Figure 26: Target groups, November 2014
Conservatives: averse to technological change
Figure 27: Attitudes towards channels available in financial services, by target groups, November 2014
Early Adopters: the digital enthusiasts
Figure 28: Attitudes towards channels available in financial services, by target groups, November 2014 (continued)
Controllers: all about autonomy
Figure 29: Attitudes towards channels available in financial services, by target groups, November 2014 (continued)
Neutral/Unenthusiastic: the disengaged
Lack of confidence draws younger consumers towards conservatism
Figure 30: Target groups, by age, November 2014
Online banking is most popular among early adopters and controllers
Figure 31: Channels preferred for each banking activity, by target groups, November 2014

Use of Financial Mobile Applications
Key points
46% of smartphone/tablet users have used a financial mobile app
Figure 32: Use of financial mobile applications, November 2014
More than half of smartphone/tablet users have never used financial apps
37% of all financial product owners have used a financial mobile app
Figure 33: Use of financial mobile applications as a proportion of all financial product owners, November 2014
Younger generations most likely to use financial mobile apps
Figure 34: Use of financial mobile applications, by age, November 2014
A closer look at each market segment
Figure 35: Use of financial mobile applications by the respective financial product owners, November 2014
iOS users more likely to use financial mobile apps
Figure 36: Use of financial mobile applications, by smartphone operating system, November 2014
Early adopters more likely to use mobile banking apps
Figure 37: Use of financial mobile apps, by target groups, November 2014

Satisfaction with Financial Mobile Applications
Key points
Consumers show an impressive level of satisfaction overall…
Figure 38: Satisfaction with financial mobile applications, November 2014
Figure 39: Satisfaction with financial mobile applications, by age, November 2014
and across operating systems
Figure 40: Satisfaction with bank or building society mobile applications, by smartphone operating system, November 2014

Mobile Apps vs. Websites in Financial Services
Key points
Mobile apps are considered overall the most useful online channel
Figure 41: Consumer preferences between mobile apps and websites in financial services, November 2014
Figure 42: Consumer preferences between mobile apps and websites in financial services, responses to option ‘Overall, the most useful for you’, by age, November 2014
Speed and convenience are top qualities of mobile banking
Figure 43: Consumer preferences between mobile apps and websites in financial services, by age, November 2014
Security still worries many people

Concerns about Smartphone Use in Financial Services
Key points
Security is consumers’ number one worry
Figure 44: Consumer attitudes towards smartphone use in financial services, November 2014
Figure 45: Consumer attitudes towards smartphone use in financial services, by age, November 2014
Functionality is a secondary concern…
while availability is not so much of an issue
Women are more concerned about security than functionality
Figure 46: Consumer attitudes towards smartphone use in financial services, by gender, November 2014
Conservatives worry the most
Figure 47: Consumer attitudes towards smartphone use in financial services, by target groups, November 2014

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *

Upcoming Reports

  • Sugar and Gum Confectionery - UK - January 2015

    Rising dental health concerns can create an opportunity for chewing gum brands. Currently much of the marketing for sugar-free gums centres around fresh breath, however, the dental health benefits, particularly for children, could warrant more focus. Though explored internationally, tooth-friendly gums tailored for children remain rare in the UK market....