Tablets aren't just a new generation of mobility or a smaller version of a laptop, but a distinct, brand-new channel that provides banks with a way to deepen relationships with rich content and visual engagement. The user base sees tablets' use as broader than smartphones, yet more mobile than computers. While tablets aren't being widely used for banking yet - only half of tablet owners say they have banked on their tablets - that usage is poised to grow as tablet use matures. And reaching the channel successfully has its rewards, since tablet users have higher incomes than average.
"When you look at smartphones, people are looking at data quickly and are getting in and out. PC users are power users. So far with tablets, and this could change, people are more in 'layback' mode, which means they are making it a casual interaction," says Mary Monahan, an executive vice president and research director at Javelin Research, which surveyed 5,211 consumers online in October 2011 as part of research on smartphone and tablet banking use.
Early bank tablet apps from the likes of Citigroup and Bank of America have featured lots of charts and visuals, and the research suggests that's the right idea.
Javelin says tablet banking should emphasize deeper content dives, education and advice; and says visual elements - including graphical designs, personal financial management tools and video - are ideally suited to the tablet. The information-heavy preferences play out in tablet users' demands for bank services.
The iPad is the most popular device with 55 percent of the market. The Kindle Fire has the largest share of any Android tablet, in spite of the fact that it requires access to an app store independent from Google. Javelin says this makes it a "compelling choice." Although Kindle Fire owners cannot access Google Play, all Android device owners can access Amazon Apps, which means the Kindle Fire App can later be extended to reach all Android users. "Android is gaining traction," Monahan says. Android devices including the Kindle Fire have 43 percent market share, she says.
Overall, Javelin is forecasting tablet adoption to reach 40 percent of the market by 2016, up from 8 percent in 2011. Also, the firm found that 22 percent of current tablet owners are "laggards," or people who follow early adopters, suggesting the tablet channel is already maturing.
