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BizReport : Mobile Marketing : March 24, 2015

Bank customers will pay to use their lender's mobile app

Banks have had a tough time growing revenue in light of low interest rates, and more people are adopting mobile payment technology negating the need to visit branches and ATMs. However, new research from SNL Financial shows that banks may have another revenue stream - mobile apps.

by Helen Leggatt

According to the findings of a survey by SNL Financial, some bank customers are willing to pay to use a mobile app provided by their bank. The question posed to 4,371 U.S. consumers was "If your bank charged $3 a month to use its mobile bank app, would you pay to keep using the bank app?".

A third (33%) of Bank of America customers said yes, the highest percentage out of any bank. Customers of Citigroup were the second most-willing (31% prepared to pay).

The percentage of customers of seven other banks who said they would pay $3 a month for mobile banking are:

▪ U.S. Bank 29%
▪ TD Bank 26%
▪ USAA 25%
▪ Wells Fargo 24%
▪ Chase Bank 24%
▪ PNC Bank 22%
▪ Capital One 18%

"Banks are definitely wondering if and how they can make money from mobile," said SNL analyst John Fletcher. "Right now I think supporting a mobile app is more an expense for them than a revenue generator."

Image via Shutterstock

Tags: apps, banking, mobile

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