The U.S. banking system has reached an important crossover pointin which the number of weekly mobile bankers is now equal to those who use the branch,according to a report from the San Francisco, Calif.-based JavelinStrategy & Research.

The shift to mobile is happening faster than anticipated, but not withoutsome annoyance from users and profound, fundamental changes inbanking, Javelin reported. “The Rise of the Mobile First Consumer –and What that Means for Banking” revealed that as a result of theadoption of smartphones and tablets, almost one in every fourprimary bank customers currently claims to be “mobile first,” thatis, they primarily use a mobile device to access their checkingaccount.

“It is really surprising that so many consumers say they go tomobile first,” Mary Monahan, executive vice president and researchdirector at Javelin Strategy & Research, said. “In the consumermind they are thinking of it as their primary access point. That isa huge change, a shift of 53 million consumers in four years. Theirhabits are changing.”

Mobile-first bankers include those who primarily bank bysmartphone or tablet using a mobile app or mobile website. In termsof numbers, 56 million American adults now consider themselves tobe mobile first.

Of the three main types of banking, the largest customer groupbanks online first at 39%, or 77 million customers, and thesmallest segment uses the branch first at 17%, or 34 millioncustomers.

“Currently, mobile bankers are not able to finish transactionson mobile devices and are purposefully shifted to online or branchchannels for completion, causing frustration,” Monahan explained.“Financial institutions should aim to create a unified view of thecustomer and offer a more seamless, easily navigated bankingexperience, to appeal to the broader user community.”

As of July 2014, 68% of U.S. mobile phone owners use smartphonesand 48% own tablets. Apple drove the market twice, first with theintroduction of the iPhone in 2007 and then the iPad in 2010.Smartwatches and the Internet of Things are next on the horizon.Current consumer adoption of smartwatches is at 6%, with 11% likelyto adopt in the next 12 months.

Mobile-first customers account for 23% of customers and are morelikely than online-first or branch-first customers to be younger,female and have children in the household. Apple iOS is their firstchoice in mobile technology. They are fee-sensitive, newer bankcustomers, use alerting at high rates and are more likely to switchbanks over the next 12 months.

Imparting information quickly will be essential to mobilemonitoring. For example, Citi provides color-coded warnings to itssmartwatch app, which visually tells consumers how close they areto reaching their credit card limits.

Read more: Financial institutions must make themobile banking experience seamless …

Online-first customers comprise the biggest group at 39%. Theyhold equivalent amounts of mean investible assets but average 30%lower primary bank deposits at $84,000 compared to the branch-firstcustomers. Their household incomes at $80,000 are slightly higherthan their mobile-first and branch-first counterparts. Android istheir mobile operating system of choice. They are most likely tomaintain multiple bank relationships.

Branch-first customers, at just 17%, are more likely to be male,older and wealthier than their online-first and mobile-firstcounterparts. The largest proportion of branch-first customers bankat giant financial institutions. Their tendency is still to usepaper and pen to monitor their accounts, and they are most likelyto meet face-to-face to resolve bank problems.

One of the reasons mobile-first customers go to the branch is toresolve issues and seek information about products and services. Infact, 45% of mobile-first customers have entered a branch in thepast 90 days for customer service questions.

“There is no question the rise of mobile technology has arrived.We will continue to see consumers utilize mobile devices as thenumber one means of interacting with their financial institution,”Matt McCombs, president/CEO for the $488 million, East Moline,Ill.-based Vibrant Credit Union, said. “Both online and mobilechannels must be geared for ease of use as well as sales leads asmany previous direct sales opportunities have shifted to electronicmeans.” McCombs pointed out that the research shows that of thosethat are mobile- or online-first, 70% have still interacted in abranch over the last 90 days.

“The branch purpose must shift but the branch will still haverelevance as a sales-first channel,” he said.

Financial institutions really have to make the experienceseamless for mobile bankers so they can do the same activities ontheir devices as they can in branches, Monahan noted. She explainedthat it is difficult to get an end-to-end experience in mobile.

“Even when they have mobile features many financial institutionsdon't have a search function,” she said. “Very few offer mobileenrollment. When a customer wants to open an account they have toleave mobile and walk into the branch. A lot of banks are actuallydoing this on purpose. These customers want to do this all inmobile.”

James Fisher, senior vice president and chief technology officerof the $300 million, Livermore, Calif.-based UNCLE Credit Union,added, “Ultimately, the adoption of mobile banking is aboutproviding consumers with enhanced convenience – and about givingthem greater choice in terms of how they interact with theirfinancial institution. To that end, Javelin's report reveals animportant insight: Banks and credit unions should focus ondelivering a user-friendly and seamless end-to-end mobileexperience without losing sight of the fact that even mobile-firstconsumers prefer to use multiple channels for their bankingneeds.”