5 Ways Mobile Banking Helps You Connect with Consumers

by Jonathan Tarud
Blog Post

The need for mobile banking is higher than ever and the numbers are consistently showing great increase of mobile-based activity. The ability for banks to keep pace with the continuous technological advancements becomes both more challenging and more vital.

As the activity through mobile banking is growing the demands from the consumers are increasing as well.

In just a year and a half, mobile banking went from just another feature to a “must-have” banking app that has the potential to drive great revenue. Therefore, the banks should pay close attention to their mobile apps and make sure that they keep up with the competition.

Poor mobile banking can be a decisive feature to some customers. Over the past year, the majority of the leading banks have advanced their mobile banking applications and now are able to offer various specialized functionalities including growth of supported platforms and enhanced user experience.

The 2014 Consumers and Mobile Financial Services report from the Federal Reserve has also showed a 5% increase in the use of mobile banking in the last 12 months for all mobile phone owners; currently the number stands at 33%. For smartphone users the percentage is as high as 51%. It has to be mentioned that most of the activities were transactional with percentages as follows:

  • checking balances (93%)
  • account-to-account transfers (57%)
  • mobile check deposits (38%)

Nowadays, it is crucial to give consumers the ability to access their highly graphic and innovative financial planning tool whether they are stuck at home or in the car on the go. With the right tools and a precise approach you can easily increase the level of the customer engagement and relative interaction.

It is true that most banks are already in the game and making their move with the mobile banking; however, it is never too late to join the race with an agile strategy, which is to build the better, cheaper and more efficient mobile infrastructure.

 

Cross-selling

When it comes to cross-selling and onboarding the financial institutions often make a mistake of overlooking the mobile banking consumers, who are actually part of the most active segment. A successful mobile banking strategy can be a key to the greater revenues through up-selling and cross-selling of the existing services and products. Maxymiser research has shown that US consumers are highly likely to trust and click on the promotional content that is posted to their bank’s mobile site. The odds of following the link are even higher if the content is targeted and relevant to their requirements.

Will consumers click on offers they find on their bank’s mobile/web site?

“Before rolling out more standalone mobile apps, digital banking leaders need to lay out a vision for how mobile will change the way their bank sells and serves its customers. With this in mind, digital banking in the future must be simple, ubiquitous, personal, empowering and most importantly, reassuring”, says Peter Wannemacher from Forrester. The leaders in the banking industry are putting more and more effort and time into promoting their mobile banking and that is the right direction to go these days.

 

Convenience

One of the primary benefits that make consumers eager to interact with mobile banking is its undeniable convenience. Actually, mobile banking has become one of the key features that consumers are after when searching for their future financial institution. 2013 Federal Reserve Consumers and Mobile Financial Services Report have shown surprisingly high mobile phone activity over the past 12 months:

  • 87% of the U.S. adult population has a mobile phone
  • 52% of mobile phones are smartphones (internet-enabled)
  • 87% of smartphone users access the internet regularly (in the past week)
  • 28% of mobile phone users have used mobile banking over the past 12 months
  • 48% of smartphone users have used mobile banking in the past 12 months

There is a way that can increase the convenience level to the consumers and help you connect with them even more though, and that is providing unique apps for each major customer segment. It is quite unrealistic to satisfy all of them with one general solution. Small businesses, retail, mass affluent, each segment has different needs; financial institutions should consider creating specialized mobile banking apps for each of them to increase their comfort and engagement.

Show them that you are as good as the non-bank that they are about to get stolen by.

Creating a high-class mobile banking system is also a perfect way of showing your customers that you are stepping up your game and competing with alluring offers of non-banks like PayPal and Square. They have been taking advantage of the mobile force for a while already and if you do not follow, then Apple or Google can easily take advantage of the revenues that typically were meant for the banks via mobile payment and wallet apps.

 

Discounts and Awards

Discounts and awards are something that can truly help you connect with the consumers. Offering them even the smallest discounts for the transactions made through mobile banking will keep them faithful to their routine and can increase their overall interaction with the application. Over a long period of time, not only will your consumers stay with your financial institution, but also get more acquainted with the benefits of mobile banking.

No more lines

Having to stand in an endless line at the bank and lose valuable time over something that could have been easily done through smartphone gave the necessary access is yet another advantage of mobile banking that catches the consumers’ attention. Eliminating the waiting will not only please your mobile banking consumer segment, but also those who prefer to visit the financial institution regarding their query or transaction. With decreased waiting lines, staff will have more time to connect with the customers that actually need the help.

Nowadays, mobile devices can be just as much use as any member of the staff at the financial institution. More and more consumers prefer to solve the matter on their own through their smartphone than to visit the institution and get help in place.

Providing consumers with a quality mobile banking application is not only a matter of connecting with them but rather a simple matter of survival. Soon enough, it will be the most preferred method of transactions and that is exactly what Mark Sheehan, EVP/Payments & Channels at Huntington Bank, one of the financial execs meant when he said “Customer acquisition on a mobile platform is not a question of ‘if,’ it’s a question of ‘when.’”

 

Has your company struggled when planning for, and developing, your mobile banking app?

Have you considered these 5 ways to connect with your customers?

Tweet this out or shoot us an email at mvp@koombea.com and let us know!

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by Jonathan Tarud
Blog Post