401(k) Participants Employing iPads and Smartphones for Financial Information

With 25 percent of 401(k) participants carrying an iPad or similar type of tablet, plan providers need to quickly make sure that their clients’ balance information is available on these devices as soon as possible. No longer happy with a quarterly paper statement mailed via snail mail, plan participants are checking financial information and balances regularly.

In research conducted by Millionaire Corner this summer with more than 1,500 401(k) and defined contribution plan participants, it was found that both tablets and smartphones of various types are used regularly by 401(k) and other defined contribution plan participants. In addition to the 25 percent that own a tablet of some type, 66 percent own a smartphone. Participants spend an average of 9.7 hours per week on their smartphones on non-conversation based activities (such as texting and emails) and 12.2 hours per week on their tablets.

What types of mobile tools are participants using to access their financial information? The smartphone market is fairly disbursed with 39 percent using an iPhone, 26 percent using an Android product (e.g., HTC, Desire, Motorola Atrix), and 29 percent using a Blackberry product (e.g., Curve, Storm) and the remainder using another product. The tablet market is dominated by the Apple iPad. Eighty-one percent of tablet users own this product. At the time this research was fielded, however, many of the competitive products were just entering the market.

Only a small portion of time spent on mobile devices is currently spent on financial activities on smartphones and tablets. Only 7.7 percent of the time spent on smartphones is spent on financial topics, while 13.6 percent of tablet time is spent on financial issues. It is logical that tablets are used more frequently than smartphones to research and conduct financial issues merely due to the size of the screen.  iPads and tablets are devices used primarily when individuals are researching or gathering information.  In contrast, smartphones are tools used more frequently when investors are “on the go.”

What types of financial activities do plan participants conduct on their smartphones and tablets? Accessing personal financial accounts is the most common activity performed by plan participants with 62 percent using their smartphones for this activity and 78 percent using their tablets. More than half pay bills with their smartphones (53 percent) and even more pay bills with their tablets (78 percent). Corresponding with financial advisors of various types has occurred for more than 40 percent of investors on both their tablets and their smartphones.

As participants’ account balances increase along with their age they are much more likely to spend more time on their tablets regarding financial issues. Younger participants spend more time on their smartphones, generally in more transaction based activities.

Financial advisory firms and providers need to develop programs to effectively use these mobile tools and meet the demands of the investors. 

• Think of the tablets as vehicles to promote investment strategies.  Providers should develop educational pieces to be viewed via a tablet as part of their overall participant communication and education strategies. This gives the participant the ability to view topics that they find interesting at times that are convenient for them.
• Use smartphones as devices to send text messages and other “reminder” information to plan participants.   When information is due to plan providers it is easy to send text messages or tweet participants or send emails. Plan providers need to begin to capture information that will allow access to participants via mobile technology, maybe as these participants are seeking the same access via their mobile device.
• Make sure that financial information is available easily via apps for the tablets and the smartphones.  Investors are becoming comfortable accessing information through these tools. Ensure that you are competitive and meeting their needs by developing these tools for their plan. Developing ease with understanding your products and services may ultimately increase their loyalty to your company.