Mobile Financial Service

and the Underserved

FDIC Advisory Committee on Economic Inclusi

December 1, 2011

James Van Dyke, President and Founde
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Personal Financial Management

is More Complex than Ever

Then and Now: The impact of Innovation and Deregulation

© 2011 Javelin Strategy

& Research
Se

Base: All mobile consum

© 201

Q1: Which of the following do you currently own? (Please select

YES or NO to each)

Landline Ownership

Underbanked Less Likely to Own a Lan

Underbanked
Se

Base: All mobile consum

© 201

Q3: Please indicate how many of the following do you personally own and use? :

A mobile (cell) phone (standard flip phone)

Mobile Phone Ownership

...yet are More Likely to Own a Mobile 

Underbanked
Se

Base: All mobile consum

© 201

Q3: Please indicate how many of the following do you personally own and use? :

A Smartphone

Smartphone Ownership

...and Nearly as Likely to Own a Smart

Underbanked
0% 20% 40% 60% 80%

Receive email alerts

Pay bills

Monitor recenttransactions

Transfer funds between accounts

View bank accountstatements

Check balances

All ConsumeUnderbanke

Q15: Which of the following financial service activities do you perform through yourmobile device? (Select all that apply)

Se

Base: All mobile consumer

© 2011 

% of consumers

Financial Activities Performed While Mobile Bank

Underbanked Use Mobile for High Va

Activities Like BillPay
0% 10% 20% 30% 40% 50% 60% 70%

I currently do not have or own any financial

...

Prepaid card or payroll card

Store‐branded debit card

Business bank account

Shares of stock or investment funds

Gift card

Jointsavings account

Store‐branded credit card

Retirementfunds

Personal savings account

Major debit or check card

Major credit card

All ConsuUnderban

Se

Base: All mobile consum

© 201

Q5: Which of the following financial products do you currently use? (Select all that apply)

% of consumers

Financial Products Used

Underbanked Use Prepaid Cards at Highe
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Underbanked Use Mobile Banking

at Higher Rates

(And online banking much less)

81%

73%

0% 20% 40% 60% 80% 1

Never

More than 12 

months ago

In the last 12 

months

In the last 90 

days

In the last 30 

days

In the last 7 days

Percent of Consumers

UnderbankAll consum

July 2009, n= 24

Base: All consumers with no c

account but with financial prod

consumers with financial p

© 2010 Javelin Strategy & R

Q4: Please indicate the last time you conducted the following financial activities: Used mobile banking (i.e. checked balances or review transactions through your mobile phone or by text message)
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Bank Robbers Evolve:

Time to Revisit Value of Empowerm

© 2011 Javelin St
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Underbanked Will Use Mobile for Purch

Figure 18: Use of Mobile Purchasing by Underbanked vs. All Consum

79%

74%

0% 20% 40% 60% 80% 

Never

More than 12 months ago

In the last 12 months

In the last 90 daysIn the last 30 days

In the last 7 days

Percent of Consumers

UnderbAll con

Q34: Please indicate the last time you made a purchase using your mobile device? (select one only)

July 2009, n= 3

Base: All consumers with no 

account, all co

© 2010 Javelin Strategy & 
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Technology and the 99%

Financial services is the subject of the movement, but can it empow

© 2011 Javelin Strategy

& Research 
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The Customer

‐Driven Architecture

is the Future of Empowered Financ

Embrace New Thinking, Boosting Profitability by Enabling Customer 

Experience Customer View Business Im

Always‐on “I’m synced with my money” Loyalty

Real‐time “I’m an account monitoring‐aholic!” Usage

Transparent “OK, I get where that came from” Cost Savin

Customer‐controlled “For my money, I’m in charge” Deposits

& Assets 

Integrated “Now I see the whole picture” Revenue Gene

Safe “For my identity, I’m in charge” Revenue

& Cost 

Goal‐fulfilling “My provider, my goals” Revenue

& Lo

(From collective analysis of Javelin’s 265,000 proprietary industry research of consumers, merchants, FIs and vendors)

© 2011 Javelin Strategy

& Research
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Using Mobile to Empower the Underba

Then and Now: The impact of Innovation and Deregulation

© 2011 Javelin Strategy

& Research 
Thank You!

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