Hispanic mobile banking_trends_study_think_now_research

ZPRYME & THINKNOW RESEARCH PRESENT

HISPANIC MOBILE
BANKING TRENDS

FEBRUARY 2013

MOBILE BANKING USAGE TRENDS ON TABLETS & SMARTPHONES

SPONSORED BY

INTELLIGENCE BY ZPRYME | ZPRYME.COM | SMARTGRIDRESEARCH.ORG
© 2013 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.

EXECUTIVE SUMMARY .................................................................1
METHODOLOGY............................................................................1
ZPRYME HISPANIC INSIGHTS PRACTICE ..................................2
THINKNOW RESEARCH ................................................................2
TOP 12 MAJOR FINDINGS ...........................................................2
ASSESSMENT, IMPLICATIONS, AND RECOMMENDATIONS...3
ASSESSMENT............................................................................... 4
IMPLICATIONS ............................................................................ 4
RECOMMENDATIONS ............................................................... 5
OVERALL SURVEY RESULTS .........................................................6
GENDER ....................................................................................... 6
AGE ............................................................................................... 6
EDUCATION LEVEL .................................................................... 7
COMBINED INCOME ................................................................. 7
YEARS LIVED IN THE U.S. ........................................................... 8
LANGUAGE SPOKEN AT HOME ............................................... 8
CULTURAL IDENTIFICATION .................................................... 9
MEDIA USAGE HABITS ............................................................... 9
SMARTPHONE OWNERSHIP ...................................................10
TABLET OWNERSHIP................................................................10
PRIMARY BANK .........................................................................11
PRIMARY BANK SATISFACTION .............................................11
MOBILE BANKING OFFERED BY PRIMARY BANK................12
ONLINE BANKING USE ............................................................12
SMARTPHONE MOBILE BANKING ACTIVITIES ....................13
TABLET MOBILE BANKING ACTIVITIES .................................13
MOBILE BANKING SATISFACTION ........................................14
MOBILE BANKING USAGE FREQUENCY ..............................14

SWITCH PRIMARY BANKS FOR MOBILE BANKING
SERVICES ................................................................................... 15
REASONS FOR USING MOBILE BANKING ............................ 15
PRIMARY BANK SOCIAL MEDIA INTERACTION................... 16
MOBILE BANKING USAGE CHANGE ..................................... 16
REASONS FOR INCREASED USE OF MOBILE BANKING .... 17
REASONS FOR DECREASED USE OF MOBILE BANKING... 17
MAIN REASONS MOBILE BANKING NOT USED .................. 18
REASON FOR NOT HAVING A BANK ACCOUNT ................ 18
OPEN BANK ACCOUNT ON MOBILE DEVICE ..................... 19
CROSS TABULATION ANALYSIS .............................................. 20
YEARS IN THE U.S. .................................................................... 20
LANGUAGE SPOKEN AT HOME ............................................. 20
CULTURAL IDENTIFICATION .................................................. 20
GENDER ANALYSIS .................................................................. 21
AGE ANALYSIS .......................................................................... 21
EDUCATION ANALYSIS ........................................................... 21
INCOME ANALYSIS .................................................................. 22
BANK OF AMERICA VS. WELLS FARGO ................................ 22
IPHONE VS. ANDROID SMARTPHONES ............................... 22
IPAD VS. ALL OTHER TABLETS ............................................... 22
UNBANKED CHARACTERISTICS ............................................ 22
NON-MOBILE BANKING HISPANIC CHARACTERISTICS .... 22
SUMMARY .................................................................................... 30

Executive Summary
For the past two decades major banks in the U.S. have
increasingly implemented new marketing campaigns to
attract Hispanic customers. During this period, national
banks such as Bank of America, Wells Fargo, and Chase
have been able to win over a significant share of the
Hispanic market due to creative marketing to Hispanics.
However, a major challenge for banks has been that the
typical or average Hispanic consumer is a moving target
with many moving pieces. A segment of Hispanics are
speeding up the social and economic ladder, while others
are slowly getting accustomed to U.S. cultural norms. That
said, the large majority of Hispanics across nationalities,
language, and social and economic class are rapidly
embracing mobile technology such as smartphones and
tablets. Thus, banks who wish to attract and retain the
fastest growing customer segment in the U.S. must now
adapt their marketing and customer service strategies to
meet the evolving mobile banking needs of Hispanics.
The Zpryme and ThinkNow Research Hispanic Mobile
Banking Trends Study identifies key mobile banking trends
and usage traits among Hispanics in the U.S. The findings
show that 69% of Hispanics use their smart phone to do
mobile banking while 47% use their tablet to conduct
mobile banking. Additionally, younger Hispanics and those
with higher incomes were more likely to use mobile
banking. The main mobile activities being performed were
listed as checking balances, viewing transactions,
transferring money, and paying bills.
Over the past year, 27% have increased their mobile
banking substantially. Another 44% have accessed their
primary bank‘s social media page.

Three key recommendations that would increase the
usage of mobile banking by Hispanics are suggested by
the data.


A comprehensive risk assessment of a banking
institution‘s mobile banking product is needed to
ensure customer satisfaction. Along with such a
review, banks could assess the mobile banking
offerings of their competitors.



Incorporating social networking sites to address
banking issues could lead to greater customer
loyalty and extol the mobile banking features that
are available.



Making sure both Spanish and English versions of the
mobile banking experience are fault-free and
provide a positive, rewarding event are crucial
characteristics.

Methodology
Zpryme and ThinkNow Research administered a survey via the
internet to a representative sample of 500 adult Hispanics
between 18 and 70 years old in October of 2012. Respondents
were asked about their overall usage of mobile banking, mobile
banking activities, their primary and mobile banking
satisfaction, and their interaction with social media sites of their
primary bank. Questions were also asked about why
respondents did not use mobile banking and why they did not
have a primary bank (among those who did not use mobile
banking or have a primary bank account). This report will
provide a descriptive frequency for each of the items and then
explore some selected crosstabs.
Due to rounding, some percentages may not add up to 100.

1
Hispanic Mobile Banking Trends Study | February 2013 | Zpryme Hispanic Insights Practice & ThinkNow Research | www.zpryme.com | www.thinknowresearch.com

Zpryme Hispanic Insights Practice

ThinkNow Research

Hispanics are comprised of many races and nationalities, speak
several languages and span the socio-economic spectrum.
Irrespective of language or national origin, they share many
commercially appealing traits: they are younger, open to new
brand opportunities, upwardly mobile, and eager to embrace
the "American experience.‖

A 21st Century company needs to be able to change quickly in
order to respond to the demands of a consumer market in flux.
The U.S. Hispanic market is the primary change driver in the U.S.
consumer landscape. ThinkNow Research has addressed this
change by providing its customers with innovative consumer
research solutions including: branded online communities,
online panel, concept testing and other custom digital solutions
specially tailored to the needs of each client and to the online
Hispanic consumer.

Zpryme‘s Hispanic Insights practice helps clients better
understand and engage this diverse group during all phases of
integration. In addition to helping clients reach Hispanics during
the early (typically non-English) phases of their American
experience, we also help clients better engage Hispanics as
they integrate with mainstream America by appealing to the
new-world values we all share. The values and aspirations of
Hispanics bind them to each other—and to all other Americans
as well. In fact, they are just as influenced by American culture
as they are by their countries of origin. So rather than
representing a new culture, Hispanics simply reflect a
continuation of the American story and character.
In short, understanding where and how to appeal Hispanics is
no longer just about appealing to particular ethnicities, it's
quickly becoming key to understanding the mainstream
American consumer as well.

The first successful nationally representative Hispanic online
research panels were built by the ThinkNow Research founders,
making them sought after experts in the Hispanic online space.
The company has built and is quickly growing its proprietary
custom Online Research Panel. DigayGane.com, consisting of
acculturated and, more importantly, less-acculturated U.S.
Hispanic consumers.
The company is also leveraging its
expertise into creating Branded Online Research Communities
targeting U.S. Hispanics which have not yet been fully
leveraged in the Hispanic space.
ThinkNow Research helps companies grow through better
meeting the needs of the U.S. Hispanic consumer and the
process gives this growing consumer segment a voice.

2

12 Major Findings

1

Nearly seven out of ten
(69%) use their smart/cell
phones to do mobile
banking.

2

Nearly five out of ten (47%)
use their tablet to conduct
mobile banking.

3

Among those who use
mobile banking, 55% said
they were ‗very satisfied‘
with their mobile banking
service.

4

Among mobile banking
users, 35% said they use
mobile banking ‗at least
once per day‘.

5

Nearly one-third (30%) said
they would switch their
primary banks to get
mobile banking services.

6

Nearly three out of ten
(27%) said their usage of
mobile banking has
‗increased substantially‘
over the last year.

7

Among mobile banking
users, 44% said they had
visited their primary bank‘s
Facebook page.

8

iPhone and iPad owners
were significantly more
likely to use mobile banking
more frequently than noniPhone and iPad owners.

9

Hispanics with incomes
above $70k were
significantly more likely to
use mobile banking on a
tablet that those with
incomes below $70k.

10

Among those who do not
use mobile banking,
‗information security‘ (44%)
was cited as the main
reason for not using mobile
banking.

11

have a bank account, ‗do
not trust banks‘ (17%) was
cited as the main reason for
not having a bank account.

12

have a bank account, 13%
said they would be ‗very
likely‘ to open a bank
account on their mobile
device if the option were
available to them.

3

Assessment, Implications, and Recommendations

Implications

Assessment

Some of the implications of Hispanic mobile banking
findings provide insights into the current and future status
of services for these consumers. Most did have a bank
account (over 92%), but not all were using mobile banking
services. And the greatest reasons given for not having a
bank account were low trust of banks or not having
enough money for an account. Probably, it would be
most profitable to pursue those who had bank accounts
but were not using mobile banking rather than pursue
those without bank accounts. In fact, the current survey
reported that almost 30% said they would switch their
primary banks to get mobile services.

A review of the major findings revealed some generalized
trends that are worth noting. Hispanics who used mobile
banking stated that their satisfaction levels were high and
over half said that they were very satisfied. Thus the
appeal of mobile banking is great and growing. In fact,
over six out of ten Hispanics said their mobile banking had
increased over last year. Another study supports this
growing trend and predicted that mobile banking would
triple to 50% of U.S. consumers by 2016.1
Younger
Hispanics (those 18 – 29) showed the highest mobile
banking usage rates. This matches the Pew Internet Study
finding that shows the younger Hispanic age groups most
likely to have a mobile phone.2 As well, those more
educated used mobile banking more often. And, not
surprisingly, higher incomes were associated with higher
mobile banking usage.
Frequency of mobile contact with banks was high.
Seventy-eight point six percent of Hispanics said they
interact with their bank from a mobile device at least
once per week.
A comScore study showed almost
identical results: nearly ¾ of mobile bankers contact their
banks at least once per week.3
Over half of the surveyed Hispanics reported that they had
interacted with their bank‘s social media page over the
last 12 months. For those using social media interactions
with their banks, Facebook, Google+, and YouTube were
the most popular avenues.

www.alixpartners.com/en/MediaCenter/PressReleaseArchive/tabid/821/articleType/, 2012.
www.federalreserve.gov/econreadata/mobile-device-report-201203.pdf, 2012.
3 www.the-exchange.ca/upload/docs/comScore%202011, 2012.

Language usage reflected that having Spanish and
English spoken equally was associated with greater mobile
device usage. Banking institutions can enhance Hispanic
mobile banking utilization by having services available in
both languages.
There are some barriers to adoption of mobile banking
which include: cost of phones (although this has
declined), cost of service plans, and concerns about
security.4 Security concerns were as well prevalent for 44%
of this survey‘s respondents; with no internet access for my
phone and a too small screen also given as reasons for not
using mobile banking. Security of data and protection of
information seem to be targets for banks to concentrate
upon to alleviate the fears of potential mobile banking
users.
Almost three-fourths of the Hispanics in this survey said their
banks offered mobile banking.
An additional study
reported that about 50% of banks do not yet have mobile

1
2

4

Ibid.


4

banking.5 So, somewhere between 25% and 50% of banks
have an opportunity to provide mobile banking services to
Hispanics, and the public at large.



Recommendations

Several recommendations that would increase the usage
of mobile banking by Hispanics are suggested by the data
from the current survey and other noted studies.




A comprehensive risk assessment of a banking
institution‘s mobile banking product was one
investigation‘s position.6 This risk assessment would
take into consideration all of the changes in
technology, business strategy, security threats,
product functionality, and legal requirements—a
―top to bottom‖ review.
Along with such a review, banks could assess their
product differentiation (or what makes mobile
banking stand out from standard banking).



Product differentiation could be enhanced by
developing innovative and easy-to-use mobile
banking apps.7





Making sure both Spanish and English versions of the
mobile banking experience are fault-free and
provide a positive, rewarding event are crucial
characteristics.



Banks should examine their customer characteristics
to see whether enticing older Hispanics (who exhibit
low participation rates for mobile banking) could
payoff in increasing mobile banking usage. Perhaps
there is a fundamental, generational divide that
makes it too costly to convert older banking
consumers into mobile bankers. An in-depth probe
of this issue is needed.

In conclusion, the foundation for banks to secure
increased mobile banking by Hispanics and other
consumers has to rest upon offering a reliable, secure, and
user-friendly experience.

Another obvious approach is for the bank to
encourage current customers to use its own mobile
services.
However, some data shows that this
obvious approach has only been used by 10% of
banks.8



loyalty and extol the mobile banking features that
are available.
Offering promotions (giveaways, coupons, prizes,
etc.) to encourage mobile banking are also
available to banks.

Incorporating social networking sites to address
banking issues could lead to greater customer

www.banktech.com/channels/usaa-tops-mobile-banking-app-us-study/232700497, 2012.
www.fdic.gov/regulations/examiners/supervisory/insights/siwin/, 2011.
7 www.alixpartners.com/en/MediaCenter/PressReleaseArchive/tabid/821/articleType/, 2012.
8 www.banktech.com/channels/usaa-tops-mobile-banking-app-us-study/232700497, 2012.
5
6


5

Overall Survey Results
Gender

Age

The sample was almost split evenly between males (49%) and
females (51%) with an age spread from 18 to those over 60
years.

There were nearly equal numbers in the 18 – 29 years old group
(39%) as in the next range, 30 – 44 years old (38%), with other
age ranges having fewer respondents: 45 – 60 years (19%),
those over 60 years (4.0%).

What is your gender?
(figure 1, source: Zpryme and ThinkNow Research)

What is your age?
Over 60, 4%

45-60, 19%
18-29 , 39%

Male , 49%
Female ,
51%
30-44, 38%

6

Education Level

Combined Income

Over half of the sample had either a high school diploma (21%)
or some college (27%), with very few (7%) having less than a
high school diploma.

Household incomes for over half (52%) were $40,000 or lower;
but 6% had an income over $100,000 annually.

What is your education level?

What is your total combined income?
20%

30%

18%

27%

25%
21%

15%
12%

15%

10%
10%

10%
5%
5%
0%

14%

19%

20%

11%

10%

8%
7%

10%
6%

5%

4%

6%

6%

3%

2%
0%

7

Years Lived in the U.S.

Language Spoken at Home

Six out of ten (61%) of the respondents had lived in the U.S. for
over 20 years.

Nearly four out of ten (37%) mostly spoke Spanish, while 36%
mostly spoke English. Twenty-six percent spoke Spanish and
English equally.

How many years have you lived in the United States?

What language do you usually speak at home?

0-4, 4%

5-9, 13%

20 years or
more, 61%

10-14, 13%

15-19, 9%

English only,
18%

Spanish
only, 11%

Spanish
mostly, 26%

English
mostly, 18%
Spanish and
English
equally, 26%

8

Cultural Identification

Media Usage Habits

The majority of respondents described themselves as either
closer to the Hispanic/Latino culture (41%) or equally close to
U.S. and Hispanic/Latino cultures (38%).

Their media habits (TV, radio, internet, magazines, etc.) tended
to drift towards English media (45%) or equally Spanish and
English (35%).

Thinking of your overall cultural identification, would
you say you feel…?

Thinking of your media habits, including television,
radio, newspapers and magazines or the internet,
would you say you use…

Much closer to
U.S. Culture, 9%

Spanish media
only, 6%

Somewhat
closer to U.S.
Culture, 12%

English media
only, 20%

Much closer to
Hispanic/Latino
Culture, 26%

Equally close to
both cultures ,
38%

English media
mostly, 25%
Somewhat
closer to
Hispanic/Latino
Culture , 15%

Spanish media
mostly, 15%

Equally Spanish
and English
media, 35%

9

Smartphone Ownership

Tablet Ownership

Although 21% did not own a smartphone that can connect to
the internet, the largest three types of smartphones that could
were Google/android (46%), Apple (20%), or RIM (6%) phone
platforms.

Fewer respondents (53%) owned a tablet that could access the
internet, but for those who did own one, the top three types
were: Apple (26%), Kindle Fire (7%), or Samsung tablet (7%).

Do you own a tablet? (by brand)

Do you own a smartphone? (by OS)

iPad
Android

46%

iPhone

26%
7%

Samsung

20%

Kindle Fire

7%

Other

5%

Blackberry Playbook

Motorola Xoom

2%

Palm

1%

None
10%

20%

1%

1%

None

21%
0%

1%

Asus

Other

1%

Acer

4%

1%

Nook

Microsoft

1%

Toshiba

6%

2%

Google Nexus

RIM (Blackberry)

30%

40%

50%

47%
0%

10%

20%

30%

40%

50%

10

Primary Bank

Primary Bank Satisfaction

The top five primary banks for these respondents were: Bank of
America (29%), Wells Fargo (17%), JP Morgan (8%), Citibank
(6%), and various credit unions (4%). These five banks/credit
unions resulted in nearly two-thirds (65%) of the sample.

The respondents were mostly either very satisfied (52%) or
somewhat satisfied (37%) with their primary banks.

Which is your primary bank?

Bank of America

How satisfied are you with your primary bank?
Very
unsatisfied, 1%

29%

Wells Fargo Bank

Neither satisfied
or unsatisfied,
9%

17%

JP Morgan Bank

8%

Do not have one

Somewhat
unsatisfied, 2%

8%

Citibank

6%

Credit unions (various)

4%

Chase

4%

Capital One

3%

Sun Trust Bank

2%

U.S. Bank

2%

USAA Federal Savings Bank

2%

PNC Bank

2%

Union Bank

1%

Compass Bank

1%

Branch Banking and Trust

Somewhat
satisfied, 37%

1%

Regions Bank

Very satisfied,
52%

1%
0%

5%

10%

15%

20%

25%

30%

35%

11

Mobile Banking Offered by Primary Bank

Online Banking Use

Eight out of ten (81%) said that their banks offered mobile
banking

And an overwhelming majority (87.0%) said they used online
banking (desktop PC, 30%; laptop, 24%; PC and laptop, 33.0%).

Does your primary bank offer mobile banking?

Do you use online banking?

No, 4%

Not sure, 16%

Yes, 81%

Yes, from
both my
desktop PC
and my
laptop, 33%

No, 13%

Yes, from my
laptop, 24%

Yes, from my
desktop PC,
30%

12

Smartphone Mobile Banking Activities

Tablet Mobile Banking Activities

Nearly seven out of ten (69%) use their smart/cell phones to do
mobile banking and the top five activities used were: checking
my balance (80%), viewing transactions (62%), receiving bank
alerts (43%), transferring money (37%), and paying bills (36%).

Over four out of ten (47%) use their tablet to conduct mobile
banking. The top five banking activities for the tablet were
identical to mobile phone usage: checking my balance (74%).
Viewing transactions (66%), paying bills (46%), transferring
money (46%), and receiving bank alerts (38%).

What type/s of mobile banking are you doing
on your smartphone?
Checking my balance

What type of mobile banking are you doing
on your tablet?
80%

Viewing transactions

62%

Receiving bank alerts

Other

10%

Applying for loan/credit card

1%
0%

11%

Asking for customer service

4%

11%

Managing investments

6%

Applying for loan/credit card

14%

Depositing checks remotely

9%

Managing investments

30%

Editing account preferences

12%

Editing account preferences

38%

Finding nearest bank/ATM

16%

Asking for customer service

46%

Receiving bank alerts

28%

Depositing checks remotely

46%

Paying bills

36%

Finding nearest bank/ATM

66%

Transferring money

37%

Paying bills

74%

Viewing transactions

43%

Transferring money

Checking my balance

4%

Other
20%

40%

60%

80%

1%
0%

20%

40%

60%

80%

13

Mobile Banking Satisfaction

Mobile Banking Usage Frequency

Satisfaction levels with mobile banking were strong: 55% said
very satisfied, and 32% said somewhat satisfied. The ‗somewhat
satisfied‘ score provides room for improvement with this
segment.‖

Among mobile banking users, the most often reported
frequencies of usage of mobile banking were either once per
day (35%), or once per week (50%).

How satisfied are you with your mobile banking
services?
Very unsatisfied,
1%

How often do you use mobile banking?
At least once
every 6 months,
1%

Somewhat
unsatisfied, 1%
Neither satisfied or
unsatisfied, 11%

At least once
per day, 35%

Very satisfied, 55%

At least once
per week, 50%

Somewhat
satisfied, 32%
At least once
per month, 13%

14

Switch Primary Banks for Mobile Banking Services

Reasons for Using Mobile Banking

Nearly one-third (30%) said they would switch their primary
banks to get mobile services.

For those who use mobile banking, the reasons for usage (in
descending order of frequency) were: convenience (77%), can
see immediate results (57%), services available 24/7 (50%), and
speed of transactions (46%).

Would you switch your primary bank to
get mobile services

Probably yes

Why do you use mobile banking?

20%

Definitely yes

Convenience

77%

10%
Can see immediate results

Probably no

57%

18%
Services available 24/7

Definitely no

50%

10%

I already have mobile services

42%
0%

10%

20%

30%

40%

50%

Speed of transactions

46%

0%

20%

40%

60%

80%

15

Primary Bank Social Media Interaction

Mobile Banking Usage Change

When asked whether they had interacted with their bank‘s
social media page over the last 12 months, forty-three percent
said yes. The breakdown for this 43% was: Facebook (44%),
Google+ (21%), YouTube (17%), Twitter (15%), and Pinterest (4%).

Over six out of ten (62%) said that their mobile banking had
increased either substantially (27%) or slightly (35%) over the last
year.

Have you interacted with your primary bank's social
media page using your smartphone or tablet?

Facebook

How has your mobile banking changed
over the last year?
Has decreased
substantially ,
1%

44%

Google +

Has decreased
slightly , 1%

21%

Youtube

Has increased
substantially ,
27%

17%

Twitter

15%

Pinterest

Has stayed the
same , 36%

4%

No

57%
0%

10%

20%

30%

40%

50%

Has increased
slightly, 35%

60%

16

Reasons for Increased Use of Mobile Banking

Reasons for Decreased Use of Mobile Banking

And the top three rated reasons that the increases have
occurred were: the services are easier to use (42%), I trust the
security of my information more (25%), and I have a new device
which makes mobile banking easier to use (15%).

On the other hand, nine respondents* said their mobile banking
had decreased. The main reasons for this decrease were: I
prefer personal contact (33%), internet connectivity costs too
high (22%), and a fear that someone will steal/use my mobile
device (22%).

What is the main reason your mobile banking has
increased over last year's usage?
The services are easier to use

What is the main reason your mobile banking has
decreased over last year's usage?
42%

I trust the security of my information
more

I prefer personal contact (face-toface, telephone)

33%

25%

I have a new device which makes
mobile banking easier to use

Fear that someone will steal/use my
mobile device

It is easier for me to make payments

9%

All of my friends/family now use
mobile banking

22%

Costs for internet connectivity too
high

15%

22%

4%
Other

It is easier for me to transfer or send
money to family

11%

My information was stolen/hacked

11%

4%

Other

1%
0%

10%

20%

30%

40%

50%

0%

10%

20%

30%

40%

*Base size too low for stable results. Above results are directional in
nature

17

Main Reasons Mobile Banking Not Used

Reason for Not Having a Bank Account

For those who are not using mobile banking, the major factors
were: concern about security (44%), don‘t have a phone or
tablet with internet access (21%), and my mobile screen is too
small (16%).

The respondents were asked why they, or anyone in their
household, did not have a bank account. The top five reasons
for not having a banking account were: do not trust banks
(17%), do not have enough money to need an account (13%),
bank services cost too much (11%), do not see the value of an
account (8%), and minimum balance requirement is too high
(7%).

Are any of the following reasons why neither you nor anyone in your
household has a bank account?

What is the main reason you are not
using mobile banking?

Reason

Concerned about information
security

44%

Response
Percent

The services I want are not available
0%

10%

20%

30%

40%

1%
1%

Credit problems

1%

3%

Requires too many identification documents to open a bank
account

2%

3%

Do not know how to open a bank account

My banking applications are hard to
use/don‘t work

3%

There are language barriers at banks

4%

3%

Could not manage or balance a bank account

My bank doesn‘t offer mobile
services

4%

The banks have inconvenient hours

5%

4%

Do not write enough checks to make it worthwhile to have a bank
account
There is no bank near home or work

Internet connections take too long
or don‘t hold

7%

Banks do not feel comfortable or welcoming

8%

7%

Banks take too long to clear checks
Other

8%

The minimum balance requirement of bank accounts is too high

16%

11%

Do not see the value of having a bank account
My mobile screen is too small

13%

The service charges of bank accounts are too high

21%

17%

Do not have enough money to need a bank account

Don‘t have smartphone, cell phone,
or tablet with internet access

Do not trust banks

1%

50%

18

Open Bank Account on Mobile Device
If those in the sample could open a bank account using a
mobile device, how likely would they be to open one? Fortyone percent said they would be somewhat likely to do so, 31%
said not too likely, 15% said no very likely at all, and 13% said
very likely. Over half (54%) said they would likely open a bank
account if they could with a mobile device.
If you could open a bank account using a mobile
device such as a cell phone, smartphone or tablet
computer, how likely would you be to open a bank
account?

Very likely,
13%
Somewhat
likely, 41%

Not likely at
all, 15%

Not too
likely, 31%

19

Cross Tabulation Analysis
Several selected items were inspected for their relationships
(crosstabs) with four demographic characteristics (gender, age,
education, and annual income).
The objective of these
inspections was to see whether there were any notable
differences for demographic groups among mobile phone
usage, tablet usage, mobile banking satisfaction, mobile
banking usage, Facebook usage (at primary banks), and
change in mobile banking usage over the past 12 months.
Some other crosstabs looked at the satisfaction levels with the
two largest primary banks, mobile banking services satisfaction
with the two largest primary banks, mobile banking usage rates
for the two most popular smartphones, mobile banking usage
rates for the iPad versus other tablets, reasons why respondents
didn‘t have bank accounts, and, characteristics of those who
don‘t do mobile banking. Finally, additional analyses focused
on cultural issues by looking at how long Hispanics had lived in
the U.S., the language preferred at home, cultural identification,
and media habits.

Years in the U.S.
For seeing what association the number of years Hispanics had
lived in the U.S., two groups were formed: those who had lived
less than 20 years (under 20), and those who had lived in the
U.S. for 20 years or longer (20 and over). The under 20 group
had more mobile phone banking usage (73.6%) than those 20
and over (66.3%). Also, tablet usage for mobile banking for the
under 20 group was higher (47.8%) than for those 20 and over
(45.9%). However, mobile banking satisfaction was about the
same for both groups (under 20, 87.7%; 20 and over, 87.0%).
Further, mobile banking usage was nearly the same when used
at least once per week (under 20, 77.5%; 20 and over, 78.4%).

Language Spoken at Home
Three groups were formed to compare language used at home
(Spanish dominant, Spanish and English equally, English
dominant). For both mobile banking by phone and mobile
banking by tablet, the Spanish and English equally group was
largest: mobile phone (Spanish dominant, 71.5%; Spanish and
English equally, 82.1%; English dominant, 57.2%); mobile tablet
(Spanish dominant, 41.9%; Spanish and English equally, 64.2%;
English dominant, 38.6%). Thus, having Spanish spoken at home
was associated with higher usage rates. Satisfaction levels for
mobile banking were high for all three groups (Spanish
dominant, 89.7%; Spanish and English equally, 87.4%; English
dominant, 84.2%). And mobile banking usage rates of at least
once per week followed the device use trends noted above,
with Spanish dominant (80.9%) and Spanish and English equally
(80.6%) higher than the English dominant group (72.0%).

Cultural Identification
How the respondents identified themselves culturally was the
next variable for review. The sample was separated into three
groups: closer to Hispanic/Latino culture (Hispanic), closer to
both Hispanic/Latino and U.S. cultures (both), and closer to U.S.
culture (U.S.). Mobile phone banking usage was higher for the
Hispanic culture group (77.3%) than for either the both group
(69.9%) or the U.S. group (53.0%). Similarly, mobile tablet usage
for banking was larger for Hispanic (51.4%) than for the both
(48.9%) or the U.S. group (34.0%). Mobile banking satisfaction
was very high for the Hispanic group (90.0%) when compared to
the both (86.3%) or U.S. culture group (76.6%). But mobile
banking usage rates of at least once per week was largest for
the both culture group (80.9%), when contrasted to the Hispanic
(78.8%) or U.S. group (70.4%).

20

Media Language Preference

Age Analysis

The last cultural influence insight was provided by the sample‘s
media habits (e.g., TV, magazines, radio, internet, etc.). Three
groups were inspected: Spanish media (Spanish), Spanish and
English media (both), and English media (English). Mobile
banking by phone was highest for the both group (74.5%) when
compared with the Spanish (70.5%) or English (35.9%) groups.
Likewise, mobile banking by tablet revealed the both group
highest (52.6%) and the Spanish (34.6%) and English (0.8%)
groups lower. Mobile banking satisfaction was high for all three
groups: Spanish (91.0%), both (86.8%), and English (85.5%).
Mobile banking usage for at least once per week was greatest
for the both group (82.5%), with Spanish (74.3%) and English
(75.5%) groups having lower usage rates.

Two age groups (18-29, young; 30-44, mid) were used for
comparisons. The young group reported more mobile banking
by phone (77.7%) than the mid group did (75.1%). A slight
difference was noticed for tablet mobile banking with the
young group at 54.3% and the mid group at 53.1%. Almost all
(95.7%) of the young group was satisfied with their mobile
banking, with fewer of the mid group (83.7%) as satisfied. Both
groups, however, are high. Eighty-four point five percent of the
young group conducted mobile banking at least once per
week, while fewer (75.3%) of the mid group did business at least
once per week. Almost the same percentage of the young
group (39.4%) as the mid group (39.7%) used Facebook to
communicate with their primary banks. And mobile banking
usage had increased nearly the same over the past 12 months
for the young group (65.5%) as for the mid group (64.6%).

Culturally, mobile banking seemed to be greatest whenever
respondents had a foot in both the Spanish and English arenas.
Perhaps the Spanish language creates a sense of belonging,
but with a realization that advantages also lay within the
English/U.S. culture. By incorporating aspects of both the
Hispanic and U.S. cultures, banking institutions can enhance
Hispanic mobile banking utilization.

Gender Analysis
More females (70.4%) than males (68.0%) used their phones for
mobile banking, but more males (51.8%) used their tablets for
mobile banking than females (41.6%). Females were slightly
more satisfied (88.9%) than males (85.7%) with their mobile
banking services, with females using mobile banking at least
once per week (80.1%) somewhat more than males (76.0%). On
the other hand, males used Facebook more (42.3%) than
females (29.3%) in interaction with their primary banks. Mobile
banking usage had increased more for males over the past 12
months (66.3%) than it had increased for females (57.3%).
Nevertheless, both groups reported a sizeable increase.

Education Analysis
Three education levels were compared: those with high school
and less education (HS); those with college, including two-year
associate degrees (college); and those with a four-year college
degree and higher degrees (university).
Education level
appeared to be associated with mobile banking phone usage:
HS (59.2%), college (70.5%), university (71.8%)—the more
education, the more usage. The same phenomenon was
observed for mobile banking tablet usage: HS (42.5%), college
(44.3%), university (54.8%). But all three groups were quite
satisfied with their mobile banking experience: HS (87.5%),
college (86.0%), university (89.2%).
Mobile banking was
conducted at least once per week more by the college group
(80.6%), than for the HS group (72.7%), or the university group
(78.5%). On the other hand, the college group used Facebook
less (30.3%) to communicate with their primary bank than the HS
group (37.5%) or the university group (44.1%). Lastly, education
level was positively related to reported mobile banking usage
increase over the last 12 months: HS (58.0%), college (60.0%),
university (68.8%).
21


Income Analysis

iPad vs. All Other Tablets

Two income groups were used for contrast purposes: those with
annual incomes less than $70, 000 (below 70), and those with
annual incomes of $70,000 and over (70 above). The 70 above
group had a higher level of mobile banking by phone (76.3%)
than the below 70 group (68.1%). As well, the tablet-conducted
mobile banking was substantially higher for those in the 70
above group (60.8%) than for those in the below 70 group
(43.5%). However, both groups reported about the same high
level of satisfaction with mobile banking: below 70 (88.3%), 70
above (89.5%). Those conducting mobile banking at least once
per week was higher for the 70 above group (86.8%) than for
the below 70 group (75.9%). Facebook communication with
their primary banks was nearly identical for the below 70
respondents (36.6%) as for those in the 70 above group (36.8%).
And over the past 12 months, mobile banking had increased
more for the 70 above group (67.1%) than it had increased for
the below 70 group (61.8%).

A comparison between the iPad and other tablets revealed
that the iPad was used more often for mobile banking. The iPad
was used at least once per week for mobile banking by 95.5%
of its owners, while other tablets were used once per week by
82.3% of their owners.

Bank of America vs. Wells Fargo
Bank of America and Wells Fargo banks were the most popular
among these Hispanics. Eighty-six point eight percent of the
respondents said they were satisfied with Bank of America as a
primary bank, with 87.5% saying they were satisfied with the
mobile banking service. Nearly the same percentages were
noted for Wells Fargo: 86.1% were satisfied with the primary
bank, and 88.3% were satisfied with mobile banking services.
Both banks were rated highly by the Hispanics who use them.

iPhone vs. Android Smartphones

Unbanked Characteristics
There were only 39 respondents who said they didn‘t have a
bank account. Gender differences revealed that the most
prominent reason for females was that banks take too long to
clear checks (16.7%). For males there was a three-way tie
among: not enough money to warrant an account, don‘t trust
banks, and service charges are too high (each with 20%).
When assessing age differences, the highest frequency
response for those 18-29 was not enough money to merit an
account (25.0%); while for the 30-44 age group, more said they
didn‘t trust banks (23.1%) than for any other choice.

Non-Mobile Banking Hispanic Characteristics
All four demographic characteristics were explored for
Hispanics who don‘t use mobile banking. More females (26.6%)
than males (23.2%) don‘t use mobile banking. And the older
the Hispanic, the more likely they are to not use mobile banking:
18-29 (18.9%), 30-44 (20.3%), 45-60 (37.1%), over 60 (65.0%). A
slight trend was observed for education.
The lower the
education level, the more likely to not use mobile banking: HS
(26.7%), college (24.0%), university (25.0%). And income level
levels showed that the lower the income, the more likely to not
use mobile banking: below 70 (25.5%), 70 above (21.6%).

When the Android was contrasted with the iPhone for mobile
banking usage, the iPhone was used more often: at least once
per week (92.6%) compared to the Android (81.7%).

22

Use a Smarthpone for Mobile Banking
by Number of Years Lived in the U.S.
80%

70%

74%
66%

70%

Satisfaction With Mobile Banking
(figure 30, source: Zpryme and ThinkKow Research)

60%

60%

20 and over

58%
53%

50%

50%

less than 20

40%

40%

34%
30%

30%

30%

20%

20%

10% 11%

10%

10%

1% 1%

0%
less than 20

very sat

20 and over

Use a Tablet for Mobile Banking

60%

some sat

neither

some unsat

very unsat

by Numbe of Years Lived in the U.S.
less than 20

60%

48%

20 and over
48%

50%

50%

1% 1%

0%

44%

46%
40%

40%

34%
31%
30%

30%

20%

20%

13%
10%

10%

8%

10%

11%

1% 1%
0%

0%
less than 20

20 and over

never

1 per day

1 per week

1 per mo

1 per 6 mos

23

by Langauge Spoken at Home
70%

90%
80%

Span dom Span and Eng Eng dom

82%
60%

72%

58%
52%

70%
57%

60%

54%

50%

50%

40%

40%

30%

36%
32%

30%

30%
20%

20%

9%

10%

10%
0%
Span dom

Span and Eng

Eng dom

2%
0% 1%

0%
very sat

Span dom

60%

64%

60%

some sat

40%

42%

very unsat

Span and Eng

Eng dom

35%
32%
30%

39%

40%

some unsat

49%
46%
42%

50%

50%

neither

2% 1% 1%


70%

13%
11%

30%
30%
20%

20%

10%

10%

14%
14%

12%

10%

9%
5%

1% 1% 2%

0%

0%
Span dom

Span and Eng

Eng dom

never

1 per day

1 per week

1 per mo

1 per 6 mos

24

by Cultural Identification

Close to Hispanic

90%
80%

60%

77%
70%

70%
60%

Close to Hispanic and U.S.

56%
53%
52%

50%

53%

40%

34% 34%

50%
30%

40%

25%
19%

20%

30%

11%

20%

10%

7%
1% 1% 2%

10%

3% 1% 3%

some unsat

very unsat

0%

0%
Close to Hisp

60%

Close to U.S.

Close to Hisp and U.S.

very sat

Close to U.S.

50%

neither


51%

some sat

Close to Hispanic

60%


Close to U.S.

52%

49%
50%

44%
40%
34%
30%

39%

40%

35%
31%
29%

30%

20%

17%

20%

10%

10%

0%

15%

9%

9%

11%

0%

5%
1% 1% 2%

Close to Hispanic


Close to U.S.

never

1 per day

1 per week

1 per mo

1 per 6 mos

25

by Type of Media Used
60%

Span media

70%

53%

Span and Eng media

Eng media

62%

50%

40%


60%

54%
52%

50%
35%
40%

35%
31%

30%

30%

30%
20%

20%

10%

12%
9% 10%

10%
1%

0%
Span media

Span and Eng media

0%
very sat

Eng media

75%

Span media

60%

71%

some sat

neither

0% 2% 2%

some unsat

very unsat


80%

0% 2% 1%

Span and Eng media

Eng media

70%
48%
47%

50%

60%

43%
40%

50%
40%

36%

34%
33%

30%

27%

30%
20%
20%

12%
10%

10%

13% 13%
10%

10%
7%

1% 1% 2%
0%

0%
Span media

Span and Eng media

Eng media

never

1 per day

1 per week

1 per mo

1 per 6 mos

26

Satisfaction With Primary Bank
Bank of America

Smartphone Mobile Banking Usage Frequency
Android vs. iPhone Users
(figure 46, source: Zpryme and ThinkNow Research
iPhone

Wells Fargo

Android

60%
50%
45%

47%

51%

44%
40%

40%

51%

50%

42%

42%
40%

35%

31%

30%

30%

25%
20%

20%

15%

15%

12%
8%

10%

4% 2%

5%

1%

0%
very sat

slight sat

neither

slight unsat

0%

0%

very unsat

4%
0%
never

Satisfaction With Mobile Banking Service
Bank of America

7%

10%

1 per day

1 per week

1 per mo

Tablet Mobile Banking Frequncy
iPad vs. All Other Tablets

Wells Fargo

iPad

60%

other tablets

60%
51% 52%

50%

50%

40%

37% 37%

40%

30%

35%

30%

20%

49% 48%

45%

20%

14%

11% 10%

10%

10%
0%

0%
very sat

slight sat

neither

2%

slight unsat

2%

very unsat

5%

2% 2%

0%

0%

0%
never

1 per day

1 per week

1 per mo

2%

1 per 6 mos

27

Hispanic Mobile Bankers
by Frequency of Use (% of group/demographic)
Demographic

never

1 per day

1 per week

1 per mon

1 per 6 mon

female

6%

35%

45%

11%

2%

male

11%

29%

47%

13%

0%

18-29

5%

34%

51%

9%

1%

30-44

6%

35%

40%

17%

1%

less than or equal to HS

15%

35%

38%

11%

1%

some college

7%

28%

53%

12%

1%

4 yr college grad +

7%

37%

42%

13%

2%

less than $70 k

10%

32%

44%

14%

1%

$70 k and over

3%

34%

53%

7%

4%

Gender

Age Group

Education

Income

Smartphone Mobile Banking, Tablet Mobile Banking, and if User Visited Primary Bank Facebook Page (% of
group/demographic)
Demographic

Smartphone Mobile Banking

Tablet Mobile Banking

Primary Bank Facebook Interaction

female

70%

42%

29%

male

68%

52%

42%

18-29

78%

54%

39%

30-44

75%

53%

40%


59%

43%

38%

some college

71%

44%

30%

4 yr college grad +

72%

55%

44%

less than $70 k

68%

44%

37%

$70 k and over

76%

61%

37%

Gender

Age Group

Education

Income


28

Demographics of Those Not Using Mobile Banking
(% of group/demographic)
Demographic

Main Reasons for Not Having a Bank Account
by Gender

% of respondents in group
female

Age Group
18-29

19%

30-44

20%

70%

45-60

37%

over 60

65%

male

80%

60%

67%
58%

50%
Gender
female

27%

male

23%

40%

30%

25%
20%

20%

Education

27%

Some college

24%

4 yr college grad +

25%

20%
13%

10%

4%

0%
not enough $

don't trust banks

service charges
too high

Income
less than $70 k

26%

$70 k and over

20%

22%

banks take too
long to clear
checks

Main Reasons for Not Having a Bank Account
by Age Group
18-29

30-44

30%
25%

25%

23%

20%
15%

15%

15%
10%

10%

8%

5%
0%
not enough $

don't trust banks

banks take too long to
clear checks

29

Summary
The growing influence of both Hispanics and mobile technology
are on a collision course to shift the economic and social fabric
of the U.S. All one has to do is take a look at the impact that
Hispanics had on the 2012 U.S. Presidential Election to
understand that politicians, small businesses and global
conglomerates, communities, and advertising agencies are
keenly aware that they must actively engage Hispanics if they
want to win elections or meet quarterly sales targets.
For the retail banking industry, understating Hispanic customer
banking, media, and mobile technology habits should become
a high priority today (not tomorrow) if they wish to remain
competitive over the long-term. The overall findings in this report
show that satisfying the mobile banking needs of Hispanics is
essential to prevent them from switching their primary bank.
Additionally, the mobile banking needs for Hispanics are likely to
be different than the general population. Thus, banks must
strategically evaluate the offerings for Hispanics (and various
segments) to develop mobile banking features that meet their
specific needs.
Overall, banks that champion the voice of their Hispanic
customers are the banks that will be the long-term winners in
terms of customer satisfaction, customer loyalty, and
profitability.

30

Zpryme Hispanic Insights Practice
Zpryme recognizes that Hispanics are comprised of many races
and nationalities, speak several languages and span the socioeconomic spectrum. Irrespective of language or national origin,
they share many commercially appealing traits: they are
younger, open to new brand opportunities, upwardly mobile,
and eager to embrace the "American experience."
Contact Zpryme at:
Email: hispanic.insights@zpryme
Phone: +1 888.977.9631
Website: www.zpryme.com

ThinkNow Research
ThinkNow Research helps companies grow through better
meeting the needs of the U.S. Hispanic consumer and the
process gives this growing consumer segment a voice.
Contact ThinkNow Research at:
Email: info@thinknowresearch.com
Phone: +1 818.843.0220
Website: www.thinknowresearch.com

Disclaimer
These materials and the information contained herein are provided by Zpryme Research &
Consulting, LLC and are intended to provide general information on a particular subject or subjects
and is not an exhaustive treatment of such subject(s). Accordingly, the information in these materials
is not intended to constitute accounting, tax, legal, investment, consulting or other professional
advice or services. The information is not intended to be relied upon as the sole basis for any decision
which may affect you or your business. Before making any decision or taking any action that might
affect your personal finances or business, you should consult a qualified professional adviser. These
materials and the information contained herein is provided as is, and Zpryme Research & Consulting,
LLC makes no express or implied representations or warranties regarding these materials and the
information herein. Without limiting the foregoing, Zpryme Research & Consulting, LLC does not
warrant that the materials or information contained herein will be error-free or will meet any
particular criteria of performance or quality. Zpryme Research & Consulting, LLC expressly disclaims
all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a
particular purpose, noninfringement, compatibility, security, and accuracy. Prediction of future
events is inherently subject to both known and unknown risks, uncertainties and other factors that
may cause actual results to vary materially. Your use of these and the information contained herein is
at your own risk and you assume full responsibility and risk of loss resulting from the use thereof.
Zpryme Research & Consulting, LLC will not be liable for any special, indirect, incidental,
consequential, or punitive damages or any other damages whatsoever, whether in an action of
contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of
these materials and the information contained herein.

31

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