By: Joe Gillen
Mobile banking has emerged as a leading financial feature that most institutions and credit unions offer. Customer satisfaction research has shown that more consumers now expect their financial institutions to offer mobile capabilities, and that this factor may drive their decision to switch banks in the future. Although analysts project that this feature will only grow over the next several years, institutions' mobile banking success may rely on how innovative and integrated their particular programs are.
For example, consumers have come to expect the most common and basic features that mobile banking offers - balance inquiry, fund-to-fund transfers, bill pay and remote check deposit. These features are still popular today, largely because many people are just beginning to enroll in this banking program. However, as consumers get more comfortable using mobile banking, some analysts say that they will come to expect more innovation and creativity, according to American Banker. For instance, picture pay features that enable consumers to take photos of their bills with their smartphone cameras and text them to their institutions - which then pay their bills - is a highly anticipated capability that some banks already have in the works.
Other banks are developing apps that enable customers to open new accounts by taking photos of blank checks from their existing banks with their smartphones. These new and unique features may one day drive the full-scale adoption of mobile banking, and fuel consumers' decisions when choosing an institution.
Charging for mobile banking?
Another factor that may also impact the future of this popular feature is whether it will remain free to consumers. Many customers moved away from conducting mail and branch transactions once online banking was introduced, not only because of the convenience, but also because it was free. The service allowed them to avoid a number of fees and service charges, which greatly affected how they conduct transactions. The same is true for mobile banking, which is typically free for those customers who also set up an online banking account. However, some bigger banks are considering charging for certain services, which may result in a backlash from many customers.
For example, some banks are already charging consumers 50 cents for each remote deposit check, the news source reports. While banks and credit unions are rightly focused on building revenue, initial reactions from customers reveal that they are not pleased with being charged for these capabilities, particularly as many institutions marketed the feature as a strategy consumers could use for saving money.