Insights
How Mobile Banking Features Earn Customers
In today’s society everything seems to be going mobile. Smartphones, tablets and apps have changed the way that customers and companies interact and conduct business. In the financial services industry, internet and mobile technology has completely transformed the way people manage their finances. Banking customers expect convenience and are increasingly demanding instant access to their financial accounts from their mobile devices. Whether they are at the grocery store, at work, or socializing with friends, customers want to be able use their phones and tablets to do their banking on the go.
Mobile Banking Usage
According to a recent U.S. Federal Reserve Board report, Consumers and Mobile Financial Services 2015, 87 percent of the U.S. adult population owned a mobile phone in 2014. Seventy-one percent of these phones were internet-enabled (smart-phones) as compared to only 61 percent in 2013. In 2014, 39 percent of all mobile phone owners with bank accounts used mobile banking services, up from 33 percent in 2013. For individuals owning smartphones, mobile banking usage is significantly higher with 52 percent of smartphone owners reporting that they had used their phones for mobile banking in 2014.
While banking customers most often use mobile technology to access their account balances and check on recent transactions, the Federal Reserve Report indicates that consumers are increasingly using their mobile phones to conduct a broader range of financial activities. For instance, 61 percent of mobile phone users in 2014 reported that they had used their phones to transfer money between accounts. Fifty-seven percent of users received an alert from their bank through a text message, push notification or email. Customers are also using mobile banking to deposit checks and make payments: 51 percent of mobile phone users reported that they had deposited a check into an account using a mobile phone camera and 48 percent made an online bill payment from a bank account using a bank’s app or online website. The number one reason for using mobile banking continues to be convenience. Among those consumers who are not using mobile banking, 86 percent reported they felt that their banking needs were already being met without mobile banking and 73 percent reported they did not see any reason to use mobile banking. Security and lack of trust were also primary reasons for not adopting mobile banking – 62 percent of non-users in the report indicated that they had security concerns with mobile banking and 34 percent did not trust mobile banking technology.
Future Opportunities for Mobile Banking
The Federal Reserve Report along with other surveys and studies of the financial services industry indicate that as customers become more familiar and comfortable with using mobile technology, mobile banking activity is likely to increase. Banks and financial institutions looking to keep their current customers and earn new customers will need to implement new and innovative mobile technologies to meet changing demands. Financial institutions looking to increase their customer base would also be wise to look for new and better ways to address the security concerns of banking customers.
While there is no doubt that mobile banking already offers many benefits and advantages, there are still plenty of opportunities for banks to improve and advance the mobile services they are providing to their customers. The global network of consultants at Mithra Investments, LLC can help you explore these opportunities. Contact us today.
