Mobile banking has been as busy as ever with more banks introducing mobile services and extending their offerings as customers become more and more comfortable using these services. Ever thought though, is it worth all this effort?
Well it is. Harris Interactive carried out research for Yodlee Interactive and found that the sheer convenience of banking is the number one reason for staying loyal to a bank in the US. Online and mobile banking are unarguably very convenient as you can carry out many banking activities from anywhere, at any time and customers are quickly recognising these benefits.
The popularity of online and mobile banking is rising and this is leading some banks to rethink their branch strategy and in some cases, reduce the number of branches as more customers rely on online and mobile banking. This does put further pressure on the online and mobile banking experience itself as it becomes a more used channel (and in some cases, the only real channel customers use). With a significant number of mobile banking users in this study highlighting the mobile banking experience as a reason why they stay with their banks, it becomes clear that banks have to deliver an enjoyable and effective mobile banking experience in order to deepen the relationship with customers and ultimately retain them.
Mobile banking is being used for a variety of tasks such as checking balances, setting up fraud alerts and paying bills. American Savings Bank recently launched a new banking service - mobile cheque deposit - where customers take a picture of the cheque to deposit it into their account. This service is gaining popularity in many markets and proved to be much more popular than the bank was ever expecting as it blew their one year target in just one month. This is yet another indicator that customers are becoming much more comfortable with depositing money using a mobile device for its ease of use and convenience. The benefits simply outweigh the concerns.
From a bank's point of view, as well as being a useful way to retain and attract customers, they are also able to cut transaction costs with company Mitek estimating savings to be over a $100 million.
Back in the UK, it is a similar picture with Intelligent Environments finding that more than half of the people in the UK state online banking services as a key motivator in bank loyalty. However, many also noted that they experienced frustrations with online and mobile banking. These reasons range from difficult to use devices to access accounts such as PIN generators to lack of consistency between offline and online services. Considering that studies are showing the importance of online and mobile banking not only in retaining customers but attracting customers, banks need to rectify this ASAP.
Like any business, banks need to focus on the customer and what they want. And banking customers in the UK and around the world are shouting for convenience. Mobile banking delivers this in abundance as customers are given more access and control over the everyday management of their finances which they can access quickly from anywhere at any time. You can connect to your online account at home, at work, in a shop, or on the bus (just to name a few).
To learn more about the different ways mobile can be used in banking, please visit our Solution Planner or simply get in touch.
Well it is. Harris Interactive carried out research for Yodlee Interactive and found that the sheer convenience of banking is the number one reason for staying loyal to a bank in the US. Online and mobile banking are unarguably very convenient as you can carry out many banking activities from anywhere, at any time and customers are quickly recognising these benefits.
The popularity of online and mobile banking is rising and this is leading some banks to rethink their branch strategy and in some cases, reduce the number of branches as more customers rely on online and mobile banking. This does put further pressure on the online and mobile banking experience itself as it becomes a more used channel (and in some cases, the only real channel customers use). With a significant number of mobile banking users in this study highlighting the mobile banking experience as a reason why they stay with their banks, it becomes clear that banks have to deliver an enjoyable and effective mobile banking experience in order to deepen the relationship with customers and ultimately retain them.
Mobile banking is being used for a variety of tasks such as checking balances, setting up fraud alerts and paying bills. American Savings Bank recently launched a new banking service - mobile cheque deposit - where customers take a picture of the cheque to deposit it into their account. This service is gaining popularity in many markets and proved to be much more popular than the bank was ever expecting as it blew their one year target in just one month. This is yet another indicator that customers are becoming much more comfortable with depositing money using a mobile device for its ease of use and convenience. The benefits simply outweigh the concerns.
From a bank's point of view, as well as being a useful way to retain and attract customers, they are also able to cut transaction costs with company Mitek estimating savings to be over a $100 million.
Back in the UK, it is a similar picture with Intelligent Environments finding that more than half of the people in the UK state online banking services as a key motivator in bank loyalty. However, many also noted that they experienced frustrations with online and mobile banking. These reasons range from difficult to use devices to access accounts such as PIN generators to lack of consistency between offline and online services. Considering that studies are showing the importance of online and mobile banking not only in retaining customers but attracting customers, banks need to rectify this ASAP.
Like any business, banks need to focus on the customer and what they want. And banking customers in the UK and around the world are shouting for convenience. Mobile banking delivers this in abundance as customers are given more access and control over the everyday management of their finances which they can access quickly from anywhere at any time. You can connect to your online account at home, at work, in a shop, or on the bus (just to name a few).
To learn more about the different ways mobile can be used in banking, please visit our Solution Planner or simply get in touch.
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