Monetizing the Mobile Channel – Webinar

*Disclosure: Banking.com is powered by Digital Insight

The mobile channel is no longer optional for banks and credit unions. But for those financial institutions already deploying mobile solutions, how do they optimize profit and benefit to the customer?

On  Wednesday, April 23rd, Digital Insight will host a free webinar,  ”Monetizing the Mobile Channel,” as part of their 2014 Momentum Webinar Series.

Digital Insight Mobile Webinar

The webinar will include insights on optimizing the benefit of your mobile channel and help you:

  • Learn about key trends driving mobile innovation and their potential to solve real problems for your users while driving revenue.
  • Rethink potential disruptors to your business with a new collaborative approach.
  • Understand how traditional channel profitability analysis may limit your perspective and therefore your outcomes.

Does your mobile spending embrace change with a laser focus on ROI? Join Digital Insight as we kickoff our  and take a dive into the future of the mobile channel as a profit engine.

We’ll be attending, following along and sharing insights via Twitter with the hashtag #DIMobile.

You can register for the webinar by clicking the image above. See you there!

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

 

What We’re Reading: Mobile App Mistakes, Security and Voice-Recognition

 Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom.

  • Smartphone users worldwide seek more mobile banking services

ABA Banking Journal

Smartphone consumers want to do much more mobile banking than most of today’s smartphone apps permit, according to an international survey by FICO. While the most requested functionality is the ability to check account balances (75%), more than half of respondents want to receive notifications of potential fraudulent activity (59%), make payments from their account (53%), and transfer money between their accounts (50%) using their smartphone.

Read more

  • The Biggest Mistakes Banks Make in Mobile App Design

American Banker

How can banks make their mobile apps more competitive? We recently asked Greg Nudelman, principal and CEO of San Francisco-based DesignCaffeine, who has worked with USAA, Intuit, and Wells Fargo on app design, about his pet peeves. Too many people try to approach app development the way they approach web development. ]That’s the completely wrong question to ask. They’re missing the entire opportunity that is presented by devices. You have to start from the ground up. The best way to approach that is lean methodology.

Read more 

  • A Guide to Winning the Mobile Banking Arms Race

Bank Systems & Technology

The rapid pace of change occurring in the financial services market largely driven by growing consumer adoption of mobile is permanently altering the retail banking landscape. More and more, offering basic mobile banking capabilities is perceived by consumers as mere table stakes when it comes to evaluating their banking relationship. Differentiation in the mobile channel is critical for financial institutions (FIs) to attract and retain customers and to reap the resulting revenue benefits. To achieve this, new features must be continually introduced, and at a frequent cadence to keep up with consumer expectations.

Read more 

  • Psst, Want to Know What Bank of America Spends on Mobile?

Bank Innovation Net

Mobile continued to grow in importance as a channel for the Charlotte, N.C.-based bank, with 14.4 million mobile customers, up from 14 million last quarter and 12 million a year ago. We dug into BofA’s earnings reports and found that CEO Brian Moynihan revealed the bank’s tech spend to grow its mobile channel during today’s 4Q 2013 earnings call. Moynihan said the bank had invested “half a billion dollars in the online mobile platform across the last three or four years, and we’ll continue to invest at that rate.”

Read more

  • Major security holes found in 90% of top mobile banking apps

BGR

Security is important in every app, of course, but if there is one group of mobile apps that users want to be secure even more so than any others, it’s probably mobile banking apps. It will undoubtedly come as a shock, however, that a new study has found 90% of mobile banking apps from top banks have serious security vulnerabilities that could potentially compromise sensitive user data. Security researcher Ariel Sanchez of IOActive recently published his findings after diving into home banking iPhone and iPad apps from 40 of the 60 top banks in the world.

Read more 

  • Wells Fargo tests voice-recognition mobile technology

Charlotte Observer

Imagine picking up your phone and being able to ask, “How much did I spend at restaurants last month?” That scenario might be in the not-too-distant future. Wells Fargo has begun testing voice recognition technology that would break ground on how customers interact with their smartphones. U.S. Bank said last year it was testing the technology among its employees. Insurers Geico and USAA have also incorporated voice recognition in their applications. Wells Fargo does not yet have a time frame for launching its version.

Read more 

  • Defining Social Media’s Purpose Can Help Produce ROI

Credit Union Times

In 2012, the $55 billion, Vienna, Va.-based Navy Federal Credit Union said it launched its “4 Million Members, 4 Million Stories” campaign as a way to thank its members for helping to reach the member milestone. The concept revolved around members submitting videos to share what they loved about Navy Federal on Facebook and to vote for their favorites to win prizes ranging from $4,000 and $1,000 certificates of deposit to $100 gift cards. During the giveaway, the credit union took the opportunity to promote auto loan refinancing and CDs via a mix of strategically crafted posts and paid Facebook ads.

Read more http://www.cutimes.com/2014/01/22/defining-social-medias-purpose-can-help-produce-ro

 

Boost Your Bottom Line: Digital Insight Webinar

Many of our readers are continually looking for ways  to offer customers and members more useful insights and information. As consumers’ lives become increasingly complex, financial institutions need to find new ways to attract, retain and generate the maximum profitability from customers and members.

On  Wednesday, August 28th, Jason Weinick, Senior Analyst, Digital Insight and Jeanne Capachin, Senior Consultant, Graber Associates, will host a free webinar detailing ways that financial institutions can use market and consumer insights to grow their digital channel.

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“By providing services that help customers manage their lives, financial institutions must first build trust,” says Weinick. ‘With hard-earned trust, consumers will reward their trusted financial institutions with greater share of wallet.”

We’ll be attending, following along and sharing insights via Twitter with the hashtag #DIROI.

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Since the webinar has passed, please direct any questions to bankingdotcom@gmail.com and we’ll connect you with the appropriate party.

Big Picture, Small Details: Improving ROI in Bank Customer Satisfaction

Given the pace of change in the contemporary business environment, it’s easy to focus almost all attention on short-term trends and pressures.  New mobile initiatives? Check. Expanding into new markets? Sure. Rethinking the retail banking approach? Absolutely. But it’s also important to periodically step back and assess the big picture, if only to identify what might have worked earlier but isn’t any more.

In that context, a new report from J.D. Power & Associates offers an interesting, and perhaps contrarian, outlook on common beliefs and practices in the banking world. Titled, “Improving the Return on Investment in Bank Customer Satisfaction—Focusing on What Really Matters,” the study shines a light on issues may seem obvious but have slipped off the radar. This has potentially serious implications for many corners of the industry.

In the past few years, conventional wisdom in general and industry policies in particular have favored initiatives around increased advertising and severe cost cutting, among other areas, to boost revenue.  The new analysis from J.D. Power, however, reveals that despite the business justification for these moves, they do more to bring customers in than to keep them engaged, and this in turn hurts margins. By contrast, there’s a clear connection between enhanced customer satisfaction and a bottom-line boost. In fact, even a 50-point increase on a 1,000-point satisfaction scale could drive an 8.5% boost in pre-tax revenue.

So what can banking institutions do to keep customers happier? Many of the study’s recommendations are quite specific and tactical. In fact, that may be the point of such an exercise—a step back to gain a strategic view of the big picture helps uncover problems with the details.

Banks clearly need to place greater emphasis on maximizing account opening and onboarding activities, such as by highlighting account pricing and other features available, specifically in response to unique customer needs. It’s been found that share of wallet typically doesn’t grow much after the first year. Failing meet the most basic needs, such as those around understanding account fees and terms during initial contact, sets the groundwork for a relationship that can’t be enhanced or even sustained—new customers become former customers very soon.

Next, with Baby Boomers moving into retirement mode, it’s vital to broaden relationships with customers and increase awareness of, for example, investment opportunities. Here’s one stat that should be on the mind of every banking professional: Just by providing financial advice, banks can increase their share of investable assets by 11 percentage points.

And if you want to find banks with the highest attrition rates, look for those that take too long resolving customer problems. We don’t live in fantasyland—there will always be problems, and we have to deal with them. But in an age of technology-enabled instant gratification, the window for resolution is getting smaller. Customers know that many alternatives are just a click away.

None of this is to suggest that big-picture strategies should be set aside—in a time of enormous change, banks need to make bold moves in all areas, from infrastructure implementations and mobile apps to refocused retail approaches. But there are times when it’s important to do the same things better, and the new study helps provide exactly that focus.