IDC Financial Insights’ new report, 2009 Consumer Mobile Banking Preferences Survey – Waiting for Takeoff reveals that institutions offering mobile banking have almost doubled since last year’s survey.

While the report argues that customer acceptance of the service exceeds availability, mobile banking is not a mainstream delivery channel. To be successful, financial institutions need to understand how mobile banking relates to strategic positioning while being realistic about the limited revenue opportunities.

According to the report, consumers have become accustomed to having more for free, and generally seem unwilling to pay for mobile banking despite the convenience. However, deposit capture and payment solutions could provide more opportunities for financial institutions to potentially gain some revenue opportunities from mobile platforms.

“Consumers are transaction and information happy, and the branch continues to be as popular as ever," said Marc DeCastro, Research Manager, Consumer Banking and Credit, IDC Financial Insights. “The financial services industry recognizes the importance and advantage it has with its brick-and-mortar branch networks, evidenced by continued branch investment.

Our survey, however, shows that consumers are getting more and more comfortable opening accounts outside of the branch. While many financial institutions have jumped into the mobile banking space and are offering solutions, some are still pondering their entrance. Those that have already installed a solution may also be looking at modifications or enhancements to their first-generation rollouts.”

IDC Financial Insights recommends that financial institutions begin expanding what they offer, marketing these offerings as easier to use, and providing more opportunities around payments and fund movement. Financial institutions that can capitalize on this will be better positioned to both obtain and retain customers.

Key findings from IDC Financial Insights’ 2009 U.S. Consumer Channel Preference Survey include:

Usage was up across all channels, requiring bankers to manage more transactions across an ever-expanding portfolio of delivery options.

The financial services industry should leverage its branch network to compete against potential nontraditional entrants that lack the brick-and-mortar infrastructure. SMS is the most popular form of mobile banking.

Customized alerts and payments outside of network are gaining in popularity, while check image view and getting rate information on the mobile device appear to be fading. Demographics for mobile banking customers were skewed toward a younger male audience, but all demographics are showing usage.

The survey involved 1,008 U.S. adults aged 18 and older regarding their channel usage and preferences. The survey (Document #FIN223735, July 2010) may be obtained at http://www.idc-fi.com/getdoc.jsp?containerId=FIN223735