Mobile’s growth is supersonic—is your strategy up to speed?

By Al Ko, Senior Vice President, Consumer Solutions, Intuit Financial Services

We are entering an era where financial management online via PC is being eclipsed by the “anytime, anywhere” convenience of mobile phones and tablet devices. As technological advancements fuel changing customer expectations, financial services innovation will continue to forever alter existing paradigms of transacting, accessing information and providing customer service. There is no looking back:

  • A recent study from IDC shows that smartphones are outpacing PCs: there were more smartphone shipments than personal computer shipments around the world in the last quarter of 2010.
  • Celent forecasts that the number of mobile banking users in the U.S. will quadruple between 2010 and 2014, reaching 77 million.
  • Javelin Strategy & Research found that one in five consumers had mobile banked within the previous 12 months, and 7 percent of consumers who switched financial institutions did so for mobile banking capabilities.
  • USAA reported that in less than one year, 1.5 million checks and nearly $1 billion were deposited via mobile.

Leading financial institutions are riding this tidal wave: 80 percent of the top 19 have iPhone apps, according to Javelin … and Android is catching up. But it’s not all about apps—consumers in the millions are opting for the speed and simplicity of text-message banking, and the convenience of Web banking on their mobile device’s browser, which is about to get even more powerful with the advent of HTML5.

Tell us how your financial institution is thinking about and forming its mobile strategy and the challenges that you face. What other aspects of mobile banking concern/interest you?

***All participants contributing to this particular blog topic shall be eligible for a chance to win an iPad 2 provided by the Intuit Financial Services Mobile Banking Sweepstakes. Click here to read the official rules. The sweepstakes to win an iPad 2 close on June 2, 2011 at 11:59:59 PM PT. People posting comments received after that time will not be eligible to enter the contest.***

Comments

  1. The challenge I think we all face with mobile banking is keeping the channel cost down while continuing to add more services. The “everything’s free” model is not sustainable. As we continue to add services, it continues to dilute the low-cost-to-serve value of the channel.

    Right now, the cost of mobile would easily match, if not outweigh, the cost of pure online banking for us if we had the same number of users, even though our mobile offerings are currently far less feature-rich than our online banking.

    Our mobile solutions need to become better tools for service fulfillment far beyond checking balances and bill pay.

  2. What happens when it crashes? Would like to know about redundancies, safeguards.

  3. This looks like a very interesting session. I’m interested to hear from folks about their experiences with mobile marketnig for financial services and what role customer communications of all kinds can/should play within the mobile banking space.

  4. Alex Chan says:

    I am looking forward to learning about mobile payments, mobile wallet, and experience other institutions have had in the mobile space. Also interested in seeing what mobile vendors offer as that factors into build vs buy decisions.

  5. Terry says:

    Phones are basically all the information of the world inside your pocket. It’s no surprise that people would switch to phones for their banking needs. The convenience and potability is amazing. But with all this information so easily accessible, its a scary thought to think that just about anyone can steal most of what you own if you leave your phone unguarded for just a few minutes.

  6. When it comes to setting a mobile strategy, I think FIs need to do 2 things first:
    #1 Find out how your customers are currently using their mobile devices.
    #2 If your FI has mobile banking, use it yourself so you can see the service’s weaknesses and strengths. If you don’t have it, think of how you currently use your device and what functionality you’d like to have.

    I think Christine hit the nail on the head. Most FIs are at the mercy of their vendor. It’s important that your vendor of choice be looking ahead in what this channel will offer. Mobile payments are now a reality here in the US. Google Wallet is live and I can even see which businesses I can use the service at. Further competition will come from Apple’s future release.

    You can no longer offer a mobile channel made up of different pieces (account summary app, RDC app, information app, payments app). Integration of all these features will be key going forward.

  7. Mike Garelik says:

    I’d love to know about any plans to combine your Mint functionality with your phone-based micromerchant POS solution. Seems like a good match.

  8. Jody Farmer says:

    Much like web self service in 1998-2002, supporting mobile won’t provide a lasting advantage, but failure to support mobile will create customer dissat and burden other channels.

    So mobile banking and payments are becoming “tickets to entry” for FIs. The “win” is in mobile is marketing /acquisition and loss mitigation. Love to hear ideas on those two.

  9. Lori Reeves says:

    We are only just beginning…Current strategy is more about getting in the game, looking forward to ideas (and justification) for moving beyond the basics.

  10. Ashley Miller says:

    Apps are a hot ‘button’ right now. What platforms are institutions choosing to deploy (iPhone, Android, Blackberry, Tablet, Windows)? Are there any platform types institutions can afford to exclude?

  11. Ron Sheklin says:

    Check out this fresh mobile banking adoption data from my colleague, Jen Canfield, at Compete:
    http://blog.compete.com/2011/06/01/consumers-weigh-in-on-the-digital-wallet/

    Looking forward to meeting you all down at the show!

  12. Doug Heil says:

    The ever-expanding capabilities of mobile banking is mind blowing, and I look forward to learning more about what is on the horizon.

  13. Max Juarez says:

    I’m looking forward to learning more about mobile P2P and wallet. Sounds like it’s going to be a great conference; I can’t wait.

  14. It will interesting to see what regulations may crop up to protect the consumer from the New Consumer Protection Agency as institutions begin getting creative to genrate new fees for the added convenience.

  15. I am looking for ideas on how to improve mobile banking for my customers.

  16. Lauri Young says:

    Interested in learning how others are planning on addressing several issues:

    Customer security concerns
    Advertising/promotion plans
    Social media usage to promote mobile banking
    P2P mobile payments (not exactly the same thing but related)

  17. Patricia says:

    I’m just getting back into mobile application development, after a few years absence,from a customer product standpoint and I’m anxious to get back up to speed on today’s mobile infrastructure. I’ve got a lot to learn and looking forward to picking a lot of this up at the conference. Our bank offers a very basic mobile banking app today to our customers but we we’re working to push out a lot of new functionality over the next year. A big concern for some of us non-tech types is security, privacy, and potential for fraud.

  18. Sarah says:

    I have heard great things about this summit. I look forward to learning more about the native app vs the growth of the mobile optimized pages. So many variations to consider and with each one, resrources to continually update.

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