Three-quarters of ‘Generation Y’ UK consumers
are willing to pay for mobile banking services, according to a
study by consultancy firm Simon-Kucher & Partners.
The 18-26 year-old segment, which makes up 12%
of the UK population, considers a monthly fee of £5.00 ($8.27) a
fair price to pay for mobile banking services. The report claims
that this shows an untapped revenue opportunity that banks can
capitalise on.
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Mobile banking is currently offered to
customers for free as Simon Kucher & Partners claims most banks
see the service as reducing costs by migrating expensive branch and
call-centre transactions to mobile devices.
“Paid-for mobile banking can also play a long
term strategic role in customer succession planning,” said Ben
Snowman, the author of the report.
“If banks launch fee carrying mobile banking
services, they will see consecutive generations of customers moving
towards paid-for services and an increasingly lower portion of the
customer base will use free banking.”
The report claims payment related mobile
services were important to those surveyed. 57% viewed being able to
carry out P2P payments as a high priority and 59% viewed POS
transactions via a mobile handset as important.
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By GlobalDataSimon-Kucher & Partners’ study says
functional richness is not the deciding factor for placing a price
on mobile banking as the majority of respondents said the main
benefits the service offered are flexibility, time savings and
accessibility.
