Everything you wanted to know about a Mobile Banking Strategy but were afraid to ask

Mobile banking is no longer a new concept as it fast becomes common place in many markets. This is transforming the way in which banks reach and sell to customers and is creating substantial potential for banks to increase customer loyalty and revenue as well as attract new customers and strengthen existing client relationships. But only if it's done correctly and more often than not - it's not.

 

It is no longer enough to simply develop mobile banking features. Banks must take into account the differences between their mobile banking customers and tailor mobile strategies to specific segments of mobile customers. This will greatly increase the likelihood that goals will be achieved such as increased loyalty and revenue. Mobile banking in the UK: Sizing the Market Opportunity recommend a series of different strategies for various segments which they have identified. For example, they classified one segment of customers as ‘Innovators’. These customers use mobile banking on a daily basis and are happy to pay for services which makes them a profitable segment. However, loyalty amongst this segment is low and demands are high. As a result, this report recommends that banks advocate the “time-saving qualities of mobile, allowing loan and overdraft arrangement via this channel, and allow full customization of mobile services.” They believe this strategy will help banks reach full potential for this segment. B minus - less talking more action please!

They also classified another segment of customers as ‘Mainstreamers’. These individuals aren’t yet using mobile banking services but are set to use them soon. This segment is focused very much on simple and easy to use features. However, they are likely to use multiple providers for all their product requirements. This report recommends banks advocate ‘integrated management of all holdings’ to help ensure they are the only provider for customers banking needs.

Bain and Company recommend that banks segment customers by wealth. They found that mobile banking in the US was used more as customer incomes increased but at the same time, they were also found to be one of the least loyal segments as they expect more and are not easily impressed with functions. This means that banks cannot expect mobile banking to simply increase loyalty for all customers, they must go beyond this. C minus - could do more!

Bain and Company also state banks should focus on the more affluent customers as they are the most profitable segment. The reason for this is that once they are happy with services offered by the bank, they are more likely to promote the bank to their affluent friends and family and take on further products. In order to keep this segment happy, Bain and Company recommend services are tailored to the individual, expert advice is given and personal banking relationships are developed in order to turn wealthy mobile banking customers into promoters of the bank.

There are multiple ways to dice customer data, but as long as banks develop clear segments and tailor their services accordingly, they are more likely to enhance customer loyalty, increase revenues substantially and attract new customers in an extremely competitive market. Read our UK Banks catching up with Mobile Banking blog for some ideas on future mobile banking innovations.

For further information regarding HSL, visit us at:

http://www.hslmobile.com 

follow us on LinkedIn, Twitter @hslmobile or Google+  

or call us on +44 (0)1506 605260

or email us at sales@haysystems.com

Banks Struggle to Cut the Mustard and Customers Jump Ship

Mobile banking is becoming the new norm in society as customers continue to embrace it as they recognise the convenience and simplicity involved. Mobile banking offers a multitude of benefits for banks - increased loyalty, reduced overheads and increased revenue to name just a few. However, realising 'what's in it for me' for the customer is a different story. 

Customers are increasingly searching for more sophisticated mobile banking functions with user simplicity and accessibility that are not readily available in the market and some are frankly not cutting the mustard.

A new study by Varolii shows that only slightly more than half of those surveyed were able to carry out more sophisticated banking functions via their banking app such as proactive account alerts and cheque deposits. However, customers continue to seek more proactive alerts to help them manage their money as the cost of living increases and the amount of disposable cash diminishes. With only just over half of banks already offering these features, others run the risk that their customers will jump ship.

Almost 2 in 3 customers believe banks are responsible for alerting them instantly when funds are low and there is not enough money to pay bills and this figure is much higher in 'younger' consumers. Many also feel a banking app could have helped them manage their finances better to avoid financial problems and that banks are profiteering through not offering a proactive service.  The big risk banks have here is that by not developing these features, customers will become dissatisfied and increasingly irate with the bank, with the possibility that they leave and go elsewhere or take their money out of banks altogether.

With account security being a number one concern, banks should be doing everything possible to safeguard accounts. Customers highlighted the number one feature they want from their banking app is to be instantly notified if there is any irregular activity suspected as they seek more control over managing the safety of their account. However, 81% are not receiving any such notifications. This does not help customers feel valued by their bank and has a negative effect on loyalty yet again.

The quality of banking apps is no longer 'a nice to have' but crucial as Varolii also reveals that apps which customers don’t find useful are likely to be deleted. Considering reports that the quality of mobile banking can be a key deciding factor on whether or not new customers join your bank, it is extremely important that banks focus on what customers are looking for and develop solutions which suit their needs to give them more valuable features.

Going forward, banks must develop more innovative mobile banking features or run the risk of losing customers. Find out how UK banks are beginning to catch up with innovations taking place in the market by visiting our HSL Blog.

For further information regarding HSL, visit us at:

http://www.hslmobile.com 

follow us on LinkedIn, Twitter @hslmobile or Google+  

or call us on +44 (0)1506 605260

or email us at sales@haysystems.com

Pancake Tuesday Arrives at HSL!

At HSL, we work extremely hard to ensure our customers are always happy but at the same time, we like to treat our staff with some fun company events to give our team an opportunity to bond and get to know each other.  

Last year events ranged from nail biting, stomach churning events such as the Edinburgh ghost tour and race car driving at Madtrax Mayhem to fine dining at award winning Dakota in South Queensferry.

Christmas was celebrated well at HSL with not one, but two company events! We attended the five star visitor attraction Dynamic Earth which offered staff the chance to see their unique interactive displays and where mince pies were had by many! We also organised our own in-house company event at our Livingston office where competitive spirits were raised over games of pool, quizzes and rounders!

As part of our 2013 New Year resolutions, we have placed some decorative bowls around the office containing a wide selection of fruit to encourage our staff to have their 5 a day. Today however, we decided to do a little detour from the Christmas diets with an extra little treat. New team member Anne Murdoch got dressed up specially as a chef for the day and cooked our entire Livingston team some very yummy pancakes.

We look forward to keeping you up to date with our company events!

For further information regarding HSL, visit us at:

http://www.hslmobile.com   

follow us on LinkedIn, Twitter @hslmobile or Google+  

or call us on +44 (0)1506 605260

or email us at sales@haysystems.com

Messaging skyrockets as a result of snow

HSL's messaging went through the roof as a client sent almost 300,000 text messages in one day due to the disruption caused by the snow. They provide messaging services to schools around the UK and found SMS was tightly embraced as schools tried to desperately contact parents.

 

An article in the Guardian states that snow at the end of January resulted in hundreds of school closures particularly in the Midlands and reeked havok on transport systems with road closures, rail disruptions and flight cancellations. Goole Courier states another huge issue is the uncertainty that severe weather can create amongst parents and teachers over whether or not schools are to remain open. Stephen Clarke, Managing Director, Contact Group, states: “With the increasing frequency of severe weather in Britain, it’s particularly important that schools have a reliable communications system to keep parents informed. During this week’s heavy snow our Call Parents automated notification system has played a major role in reducing inconvenience caused by school closures by informing parents quickly about the current situation.”

SMS has established itself as an effective and reliable method of contacting a large group of people instantly and also gives great peace of mind as schools can rest assured parents will see the text and read it quickly. This saves parents an enormous amount of stress and worry and enables them to make appropriate child care arrangements if necessary. For the school, they are able to vastly reduce the number of inbound calls from parents and no longer need to try and contact every parent to inform them of school closures or email the parents and hope they log in and check their emails in time.

Text messaging can also be used by schools and companies around the world to quickly inform their staff if the office is closed. This is not just a helpful service, it is an employer's obligation to ensure staff are not traveling unnecessarily to work in dangerous conditions. Stephen Thomas, Croner’s Health and Safety expert, says: “Employers should have clear terms in their contracts to ensure there is maximum flexibility when bad weather happens. It’s a particular problem for people who live in rural areas and it is the responsibility of their employer to ensure they are taking precautions against dangerous commutes."

HSL's technical team work hard to ensure our messaging has a 99.99% availability. We offer high reliability to ensure our customers receive the very best service and assign dedicated account managers to ensure they can speak to someone directly regarding any questions and concerns they may have. We have been delivering messaging services across the globe since 1999 and creating hundreds of happy, contented companies.

For further information regarding HSL, visit us at: 

http://www.hslmobile.com   

follow us on LinkedIn, Twitter @hslmobile or Google+  

or call us on +44 (0)1506 605260

or email us at sales@haysystems.com