Let’s get our facts right first and for all: There are over one-third customers who make decisions based on user-friendly mobile banking solutions. Which means, mobile banking has become an essential service today? That said, mobility continues to lead innovation priorities across banks globally. Majority of the banks today are offering a basic banking application while others have already leveraged their banking capabilities to enable on-the-go financial transactions.
On the other hand, while mobiles are one of the most economical banking channels, customers are hesitating because of privacy and identity theft concerns, difficulty with using these new technologies like mobile wallet apps and lacking in all-encompassing solution. Still there are a number of challenges to be addressed before the mobile phone can move ahead to become the primary banking interface.
There are two critical factors considering customer expectations, viz. Features and Functionality wherein the most digital banking services fall short of. For instance, in the US, despite hefty yearly increase in mobile banking the usage frequency actually dropped by a third between 2012 and 2013.
1. Mobile Wallet Apps in 2016
However, looking at the current times, American consumers will have more choices in 2016 for how they make purchases with their smart phones as big banks and retailers will compete for market share against tech giants Apple and Google.
Certainly, the banks are in a dire need of reassessing and aligning their mobile strategies that revolve around customer behaviours and needs. While only few banks are leveraging the power of mobility to convert engagement and loyalty into share of wallet. The need of the hour is to take a holistic view of the potential of mobile banking from the perspective of customer satisfaction and enterprise profitability.
2. Giving Mobile-first banking experience
As banks start off to deliver a comprehensive mobile-first banking experience to customers, it would be worthy to acknowledge a new set of competition that is thriving on being mobile-only. In this era where the tech-savvy generation wants to accomplish tasks in just a click, even a payment just to say, all the leading banks need to buck up with reinventing the banking experience around mobile devices.
3. Leveraging the Sales Strategy
There’s certainly a need for the banks to define a sales strategy that scales up the potential of mobility to create various opportunities for up-selling or cross-selling. The fact is that the potential of the mobile device to further expand customer relationships isn’t growing the way it should be. Currently, few mobile apps are optimized for sales and marketing activities or for allowing customers to apply for new services. As mobile usage grows, banks will need to hyper-personalize offers based on transactional patterns of customers, to ensure a higher rate of mutual productivity and value.
A successful hyper-personalization can be derived from actionable insights absorbed from customers’ transactional and contextual data. Thus, it is important to gain a complete understanding of a customer’s financial needs, context and behaviour.
4. Serving Integrated Experience
Banks should be working towards creating a rich, engaging and integrated mobile experience. There have been reports stating that new accounts activated through mobile devices accounted for up to 20 per cent in 2013 and this is expected to rise fivefold by 2020. Another Retail Banking 2014 report stated that fully automated account origination topped the list of innovations that banks are pursuing in the online channel.
If customers are basing their choice of bank on its mobile capabilities, then a simple, solid and streamlined account opening experience could indeed be the lever for customer acquisition. Moreover, banks should be able to leverage the native capabilities of mobile devices, like the camera for data capture or the unique device ID for authentication, to make the experience seamless. The entire process must be designed to alleviate the need for any physical intervention at any stage, right from submitting and tracking the application to funding the account.
5. Mobilizing the workforce
In banking, mobile devices have the power to empower field agents and sales personnel to send across a high level of service and engagement by having the flexibility to access the information and applications in real-time. Also, it always makes sense to accept BYOD than cope with the risks of unauthorized usage of devices on the enterprise network. Therefore, banks should be looking out for ways to unlock the potential of BYOD while taking precautions to keep a distance from mobile-related security risks.
As more and more banks are pursuing consumer-focused mobile-first strategies, it totally makes sense to implement a similar approach to empowering employees. One study observed that organizations that have embraced BYOD were likely to witness greater numbers considering customer acquisitions, sales and profits, which further leads them to enhancing employee satisfaction.
One thing is clear and that is banks will have to define a long-term innovation road map that will accommodate growing future developments in mobile device technologies. Certainly, the emphasis will have to be on redefining banking around the potential that these new technologies bring in in spite of simply adapting them to incrementally improve banking as we have known it.
So if are you planning to develop a mobile app? Contact us today without late.