Advantages of Mobility in Banking include:
Customers can perform transactions securely on mobile and web apps, and multiple security checks are in place.
Banks can effectively advertise their financial products and tools to their customers.
Employees in banking have upgraded their working process with smartphones and tablets.
Banks can sync up with app development companies to allow customers to manage their finances easier, wherever they are.
Reduces costs and serves the market efficiently.
According to a survey conducted by Bain that involved 150,100 consumers in 14 national markets, digital technologies that improve interaction increase the chances of a customer recommending their bank to others. People with higher income had higher mobile banking usage, but also gave their banks low loyalty scores. Bain’s two major findings: an increase in mobile banking and tepid loyalty scores by significant customers in several markets. This may indicate that there is a need to tailor digital services to the priorities of affluent customers, and integrate these channels closely for a seamless omnichannel customer experience. This will allow an edge over other competitors.
Big banks have been working on their mobility over the past two years, and are now revealing their results. An AlixPartners study shows that 65 percent of mobile users switched to a new bank, with mobile banking capabilities playing a crucial role in their decision. Chase Bank is one of the largest banks in the country, and experienced loss in branch expenses. Over a four year period, attrition rates fell to 9 percent, and the amount of products and services per household increased. Chase, along with other large banks, have been offering five mobile services: mobile banking, mobile deposits, mobile bill pay, P2P payments and ATM/branch locators. This list continues to grow.
Despite these reports, half of consumers still have not used their bank’s mobile banking app. There is room for growth across all demographics. A simple interface design and better integration with other channels will increase app use and continued use.
Author: Yvonne Kwan
Axton, Sicily. “The Big Banks’ Latest Trends in Mobile Banking”. http://www.bankdirector.com/, 2015. Online. Internet. 9 May 2017.
Mintel. “Mobile Banking-Us-2016”. 2016. Online. 9 May. 2017.
Carla, Siya. “How Enterprise Mobility is Transforming Finance and Banking Industry Worldwide? – Finoit Technologies”. Finoit Technologies, n.d. Online. Internet. 9 May 2017.
Toit, Gerard. “Customer loyalty in retail banking: Global edition 2012”. Bain.com, 2012. Online. Internet. 9 May 2017.