August 15, 2014

Mobile Banking: Usage Up and Customers Migrating to the Best Apps

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Several reports examining mobile banking habits of U.S. consumers have been released this month, supporting what we in the industry already know – mobile is becoming one of the most used and important channels for banks and their customers. Personetics Mobile Experience

The MSR Group conducted a study in Q4 2013 that shows nearly half of all banking consumers use mobile, up 21% from the previous quarter. And while most are satisfied with the channel, 46% say the app doesn’t work as it should. It was noted that the majority of mobile banking customers perform relatively simple tasks like checking balances today and that “satisfaction is likely to stall until banks create the ability and the reason to use deeper functionality in their apps,” and “often the only reason consumers don’t realize they want something is because they don’t know it exists.”

An Andeara and Celent report looked at online account openings and found a 24% increase from the previous year. The Members Group determined that its now “more important than ever for FIs to make a good first impression via the mobile channel.”

Maybe most insightful is what the Wall Street Journal wrote: “When banks don’t deliver, some customers are walking.” According to Javelin Strategy & Research and the WSJ, “60% of smart-phone or tablet users who switched banks in the fourth quarter said mobile banking was an important factor in the decision, up from 7% in the second quarter 2010.”

The data clearly shows that mobile adoption is strong, but also that customers expect a personalized, intuitive experience that addresses their individual needs. Banks that get it right will be greatly rewarded, not only with new customers signing up for better mobile service, but also because mobile transactions cost 10 cents versus $1.25 on average at the ATM. A humanized approach on the mobile channel that helps guide the customer to what they need to know builds trust and will transform this channel even more in the next 12 to 24 months.

The Financial Brand, Is Mobile Banking Living Up to Its Promise?, April 10, 2014

The Members Group, Use of #Mobile for Advanced banking Services on the Rise, April 7, 2014

Wall Street Journal, The Bank Teller That Can Fit in Your Pocket, April 10, 2014