Lately the development of banking technologies, the necessity to increase efficiency and to decrease costs as well as the competitive situation on the market have been forced a lot of banks to acknowledge the importance of distance channels development - services for the current clients same as attraction of the new ones.
Mobile banking is one of the most fast growing segments of distance banking services, which is forming new “patterns” of consumer behavior. In the situation, when payment interface is not connected directly to the funding source, apps, which use the max opportunities of mobile devices and offer convenient and simple interface, will win. The competition in the sphere of functionality and design of mobile apps interface is the key drivers of this market development.
By opinion of J’son & Partners Consulting’s experts, mobile bank shouldn’t repeat the functionality of internet bank, but adjust in accordance with users’ necessities and limitations of mobile device. In this situation it is very important for financial institutions to identify users’ preferences in the sphere of functionality, interface and users’ experience.
J’son & Partners Consulting conducted a yearly research of the Russian mobile banking, which volume exceeded 15 bln RUB in 2014.
The issues considered in the research of Mobile Banking in Russian Federation: Market Forecast, Consumers’ Behavior, Rating of the Apps and additionally there is an estimation of the market volume and structure ($) as well as the information about “patterns” of users’ behavior, analysis of necessary and perspective functions of mobile banks. In the end, there is a rating of mobile banks, based on its functionality and interface.
Key Questions of the Research:
- Russian mobile banking market volume, structure and dynamics, forecast till 2018, including market turnover, structure by categories of payments, number of transactions, average commission, structure by market participants;
- The analysis of mobile banking users’ behavior and recommendation on the mobile banking apps development, incl.the level of user’s activity, the most used and popular functions, satisfaction, influence of mobile bank in the choice of the bank and other parameters;
- The rating of banking mobile payments, including separate ratings by functionality and design.
The Practical Value of the Research:
- For banks, which offer services to individuals – recommendations on the development of mobile banking apps;
- For participants of e-payment systems market – statistic indicators of mobile banking and estimation of its development perspectives;
- For investors – key trends on the mobile banking market and opportunities for launching new products.
Target Audience: the research is aimed at the departments of innovational development in traditional banking institutions, developers of software, consultancy companies, which implement software, venture funds, which are specializing on investments in financial online-technologies and also start-ups and research agencies.
Brief Results of the Research
In accordance with the preliminary data by J’son & Partners Consulting, the turnover of payments via mobile banking was 15.2 bln.RUB in 2014. The forecast for 2015: the turnover will increase for 30%, average yearly growth rate will be 28% in 2014 – 2018. Key indicators of payments via mobile banks had also been researched, including structure, number of transactions, average commission, market participants.
Express-survey of mobile banking users in Russia was conducted in terms of this research. The results of the survey demonstrate that banking mobile app is an effective channel for promotion of banking services. Half of respondents pointed out that they use mobile banking once per week or even more often.
The survey revealed that balance check and last transactions are the most used functions. Besides, major share of respondents admitted that they regularly do transactions between their own and other accounts, pay for telecom services and transfer money from card to card.
Results of the survey also proved the theory about the importance of visual representation and easiness of banking mobile app use. For example, over 1/3 of respondents said that they satisfied with the work of mobile app, while the most desirable functions is the record of personal expenses with visualization and simplified authorization.
The following information was also received: the analysis of banking services consumption model, the activity of mobile banking use, the most frequently used and in demand functions, users’ satisfaction, social-demographic indicators and others.
Mobile Banking Apps Rating
J'son & Partners Consulting’s experts compared apps of over 30 mobile banking apps. The apps had been compared by 40 indicators, including functionality, experience of cooperation (UX), design and apps shops rating. Data actuality – 12 May 2015. The extended calculation formula is presented in the annex.
Results of mobile banks’ functionality estimations had been sent to PR departments of all banks.
Results of the comparison revealed the leaders – Tinkoff Bank, Rocketbank and Instabank apps. All three mentioned banks are distance and don’t have physical spots to service clients, which makes the quality of mobile apps crucial for business.
Among the classical banks, the leading positions were taken by Sberbank, Bank Saint-Petersburg and Home Credit Bank.
The analysis of mobile banks rating shows the necessity to pay attention to the simplicity, convenience and visualization of apps. The positive trend is the launch of several successful mobile banks by traditional financial institutions, which are serious competitors to “light” banks, such as Rocketbank and Instabank.
Besides, some industry experts consider that Russian banking industry is not only as good as foreign analogs in the sphere of mobile banks development, but even better in some ways.
Annex. The Formula to Calculate the Final Rating Score
The cabinet research conducted by J’son & Partners Consulting is the base to calculate the final score.
Relative indicator is presented in the rating, calculated as the share of max.score – 600. Data actuality – 12th May, 2015.
The resulting numbers cannot be converted by linear method and presented as the relative scale for comparison.
Detailed Results of the Research are Presented in the Full Version of the Report: Mobile Banking in Russian Federation – 2015: Forecasts, Customers’ Behavior, Rating of the Apps
Example of Report’s Content:
- E-Payment Systems Market
3.2.Tendencies, Forecasts and Perspectives
3.3.Market Volume and Dynamics
- Overview of Foreign Mobile Banking Market
- Russian Market of Mobile Banking
5.1.Market Volume and Dynamics
5.1.1. Number of Users by Market Segments
5.1.2. The Turnover of Payments
126.96.36.199. By Market Segments
188.8.131.52. By Market Players
5.1.3. The Number of Transactions by Key Market Players
5.1.4. Average Comission
5.2. Profiles of the Key Players (By Volume of Payments)
5.2.1. Bank 1
5.2.2. Bank 2
5.2.2. Bank N
5.3.The Analysis of Consumer Behaviour (Based on the Survey)
5.3.2. Frequency of Use
5.3.3. The Most Used Functions
5.3.4. The Most Popular Functions
5.3.5. Aspects of Mobile Payment Interface Choice
5.4. Rating of Mobile Banking Apps
184.108.40.206. Informational Services
220.127.116.11. Deposits and Loans
18.104.22.168. Cooperation with the Bank
22.214.171.124. Work with Invoices
5.4.3. Design and Interface
5.4.4. Other Indicators
This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.