Most US consumers are not using mobile banking because they simply don’t need it—their existing banking methods already meet their needs. This is the central finding of a substantial 79-page report from the Federal Reserve (FRB) examining how consumers interact with mobile financial services. The study did find an increase in the number of people using mobile devices to access bank accounts and credit cards compared with the previous year.
Despite that growth, 54% of survey respondents said they could complete all necessary banking tasks without using mobile services, a slight decline from 58% recorded a year earlier. The FRB treated mobile banking and mobile payments as distinct areas and identified security concerns as a leading barrier: 49% of respondents who avoided mobile banking cited security worries, and 38% expressed similar concerns about mobile payments.
About one-third of those who did not use mobile banking said they simply did not see the point and found it easier to pay by another method. Still, mobile payment activity is increasing: 15% of mobile phone owners reported making a mobile payment in the past 12 months, up from 12% the previous year. Point-of-sale mobile payments among smartphone users also rose to 6% over the past 12 months, compared with just 1% in December 2011.
Certain behaviors remain consistent: the most common mobile banking activity among US consumers continues to be checking account balances. The report also explored the spread of smartphone adoption in the US, its impact on mobile banking, and the growing interest in m-commerce.
For example, 42% of respondents said they had used a smartphone to compare retail deals online, an activity that contributes to so-called ROBO behavior (research offline, buy online). This trend helps explain why some retailers have tried to discourage in-store browsing that leads to online purchases. In addition, 64% of respondents reported checking their account balance on a mobile device before making a large purchase; half of those who checked ended up deciding not to purchase the item.
Overall, these adoption metrics are trending upward. Other industry research aligns with the FRB’s findings: market analysis from firms such as Juniper Research has projected substantial growth in mobile banking users over the coming years, driven by broader acceptance of push notifications and increasing tablet use.
The FRB’s full report provides additional detail and context on consumer attitudes and behaviors regarding mobile financial services. As mobile banking and payments become more capable and secure, understanding the remaining barriers—especially security concerns and perceived lack of need—will be key to encouraging wider adoption.