Mobile Banking in the U.S. - Just Not There Yet

WASHINGTON, Jan. 10, 2017 /PRNewswire/ -- Pinxter Digital knows mobile has and will continue to pave the way for advancements in all industries. One particular industry that's made huge mobile strides within the last five years is banking.

While you may pin the U.S. as a leader in the mobile banking world, surprisingly we're lagging far behind. Countries taking top spots include Indonesia, China, Thailand and India. Pinxter wanted to take a closer look at what's contributing to this wide gap in usage.

Traditional brick-and-mortar banks play a large role. Visiting a branch in India for example, is a dreary experience due to never-ending lines. This isn't a reflection of a lack of branches (because India actually has way more than the U.S.) but a result of its population being quadruple the size of the United States'. Of course in the U.S. we aren't always thrilled with our trip to the bank, but a common thought process is if it wasn't too horrible, why make the effort to go mobile (this pertaining mostly towards non-Millennials). Taking location into consideration is also important. Other countries that are on the lower end of mobile bank usage like Canada, Australia and Japan average about double the amount of branches per 10,000 people than those on the higher end. There are many people who may have no choice but to go mobile if banks are too out of reach.

Promotion is a big factor as well. While U.S. banks advertise their mobile apps as an added benefit or complimentary product, banks in high usage countries push their apps as a sole means of access. It's much more expensive to build new branches so the only way to avoid those long lines or traveling far distances is by going through your phone. Mobile has become a higher priority and greater need in these places.

When it comes to app development, as fast and continuous innovation trudges forward in countries like Spain, Turkey and Poland, many U.S. banks are held back by their needs to meet new compliance obligations and rebuild their reputations from the most recent financial crisis. This blocks creative advancements.

We can only hope more productive measures will be taken to tackle these issues and bring U.S. mobile banking up to speed and where consumers need it to be. Will 2017 be the year?

Katie Argueta
202.590.7502
[email protected]
Washington D.C.

SOURCE Pinxter Digital