The FRB published its report, Consumers and Mobile Financial Services, on consumers’ use of mobile technology to access financial services. The report focuses on mobile banking, defined as using a mobile phone to access bank, credit card and other financial accounts via text messaging, mobile applications or the phone’s web browser, and defined mobile payments, in part, as making purchases, bill payments, charitable donations, etc., using a mobile phone. The report found that although the use of mobile phones has significantly increased, most users do not use mobile banking or mobile payments because they: (1) do not see a benefit in the services; (2) have security concerns; and (3) have found an easier platform and/or already have their banking needs met. However, the use of mobile banking and mobile payments was higher among the “under/unbanked” – defined to include consumers who are young, minorities or have low income levels, although within this group mobile payments were less likely to be used than mobile banking. The report also identified other potential uses for mobile financial services, including shopping and personal financial management and budgeting.
Click here for report.