Top 5 Mobile Missed Opportunities that Cost Financial Institutions Money
In recent years, the proliferation of smart phones, tablets and web-enabled mobile devices has spurred nearly every financial institution to scramble and put together a mobile banking option for their consumers. It’s not just the growth of these technologies that is driving demand, it’s the users themselves. Mobile users have been found to access their financial information 64 percent more frequently than non-mobile users. As these consumers become increasingly more dependent on these devices, financial institutions are realizing that the first-generation mobile banking offerings are not sufficiently supporting the demand for anytime, anywhere banking needs, or giving financial institutions the ability to integrate all product and service offerings. At what point did the existing mobile banking experience become obsolete?
It is time to start thinking bigger. Financial institutions of all sizes must evolve their mobile strategy from a simple transaction only application – to a platform that allows your financial institution to offer all products and services via the mobile channel. In fact, it is projected that mobile banking will reach nearly 46 percent of all U.S. bank account holders by 2017. To stay competitive, financial institutions must embrace mobile technologies to deliver a consumer experience that is both competitive and world class. This will help mitigate the risk of losing customers in the coming years by supporting the consumer’s needs while simultaneously promoting products and services. It is time to think in terms of a strategic channel that serves a virtual presence for a growing percentage of financial consumers.
Throughout our years of experience in the industry we’ve witnessed some of the nation’s largest financial institutions miss significant growth opportunities by not expanding their mobile strategies. To help, we’ve compiled a list of the top five missed opportunities that are costing financial institutions growth and profit:
Top 5 Mobile Missed Opportunities:
- A mobile strategy is not just an app: A good mobile strategy includes all the services consumers want and need – not just transactional banking. The strategy needs to consider how the app can be used to boost revenue, provide best-in-class customer service, as well as attract new consumers while maintaining and engaging existing users.
- Like a traditional branch – the user experience matters: Focus on this experience. Users find it frustrating to continually enter log-in information for every mobile application an institution offers tarnishing the experience. A positive user experience will quickly drive product adoption and usage, saving the institution tremendous amounts of time and money. For example, a typical institution should experience an average savings of $4.15 in processing costs for every check that is deposited through their mobile platform versus a brick and mortar branch. The app must also be fully customized and branded to align with strategic marketing guidelines. It should provide the highest level of consumer self-service and provide answers to questions 24/7 to enhance the value of the mobile platform.
- One’s enough!: One app creates a unified mobile presence. Multiple apps lower adoption and confuse consumers. The results are poor ROI and consumer adoption. Give your consumers access to all product and service offerings in one downloadable app.
- Make the data work for you: Tracking app downloads just isn’t enough these days. Your organization is missing out on valuable intelligence about how your consumers are interacting with your app. Take advantage of analytic tools tied to your platform to learn about user preferences, engagement stats and true ROI data.
- Not monetizing the mobile presence: Beyond simple banking transactions, the mobile app needs to provide opportunities to engage and serve the consumer. The mobile app should promote products and enhance revenue opportunities through a great user experience, while also maximizing channel efficiency and lowering operating expenses for the institution. ROI is created by offering products and services like loan applications, knowledge base answers to questions with strong calls to action, and new account openings to name a few.
For a growing number of consumers, the mobile experience is the only interaction they have with your financial institution. By avoiding these 5 missed opportunities you will develop a mobile strategy that encompasses all aspects of your business – from attracting new revenue and promoting products, to providing superior self-service. Done right, your mobile strategy and presentation should both increase productivity, revenue and profitability.
Amber Robinson is the Director of Marketing at SilverCloud, Inc.
Dan Chaney is the CEO of FI-Mobile.