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USAA Claims Best Mobile Banking Adoption Rate

2009 November 10
USAA Adoption is at 14% of all members

USAA Adoption is at 14% of all members

At the Mobile Commerce USA conference last week in San Francisco, USAA’s Jeff Dennes asserted that their adoption rate of 14% of all members is the best in the U.S. in percentage terms.

With 7.3 million members this would indicate USAA has just over 1 million mobile banking users and likely second only to Bank of America in absolute number of mobile bankers.

BofA reports having 3.5 million mobile bankers out of over 53 million customers (including small businesses) for an adoption rate of under 7%. There are likely fewer small business accounts in the USAA membership numbers so the comparison isn’t exactly apples-to-apples. However, USAA’s doubling of the Bank of America’s respectable adoption rate is obviously outside any margin of error due to customer mix.

In my experience, BofA’s 7% mobile banking adoption rate is very, very good. 14% mobile banking adoption is absolutely exceptional, in my opinion. Many institutions (and especially vendors) measure adoption as a percentage of online banking customers. Note that both BofA and USAA are measuring their adoption rates based on ALL customers not just online bankers. I think this is a more honest and useful measurement.

After all, one of the key benefits of mobile banking to institutions is in offering another low cost channel ($0.08/visit according to Fiserv/MCOM). The point is to get customers to move from expensive channels to inexpensive ones. I doubt anyone expects savings by moving transactions from online banking to mobile banking.

US Mobile Banking Market Share (in millions of users)

US Mobile Banking Market Share (in millions of users)

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  1. November 11, 2009

    Nice Article David. As the Customer Advocacy VP at ClairMail I think about adoption all the time. 14% is a marketing leading rate. With respect to mobile being measured as a % of online, it started that way because most ( 90%) of mobiles have simply been an extension of online in order to re use the security credentials from Online. But the move is on to expand out from just Online to cover the entire customer base. The two compliment each other to provide the lowest costs, greatest personalization and best retention rates.

    Dave Galloway

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