By: Joe Gillen
Growth of the mobile banking industry is on the rise, and more consumers are using their smartphones to manage several elements of their lives. In addition to tracking and monitoring their finances, adults are using their smartphones to shop, download coupons, develop budgets, provide GPS services and manage appointments. While smartphones are becoming capable of completing a number of tasks, not all Americans have jumped on the mobile bandwagon, and those who�have fall into certain demographics. Many financial institutions have recognized this, and are now building their mobile channels to appeal to this growing�group of consumers.�
A recent American Banker analysis found that banks and credit unions are trying to attract more "desirable" customers as they seek to overcome economic sluggishness and burdensome new costs that resulted from recent federal legislation. The publication cited a recent Javelin Strategy and Research study, which found that most mobile banking users�"tend to be younger and richer than the typical consumer," and 45 percent of these individuals deposit roughly $50,000 in investable assets with their bank. This information, coupled with customer satisfaction research demonstrating that mobile banking users are more loyal than those who do not utilize the service, has prompted many banks to develop their mobile channels with this demographic in mind.
Certain features are in higher demand than others
In order to appeal to younger demographics, however, the analysis noted that offering basic mobile banking features is not sufficient. Younger, technologically-driven and affluent customers have their options when it comes to choosing a financial institution, and most will seek out banks that can provide a comprehensive mobile banking program that differs from features they can use online. This means that while account inquiry, bill pay and fund transfers remain important, remote check deposit and picture pay are supreme in capturing a younger audience. Although many of nation's banks and credit unions now offer remote check deposit, there are still a handful of institutions that risk falling behind if they fail to develop this feature quickly. There is also a large market for picture pay services, which few institutions have unveiled as of yet.�
Although most banks are struggling to attain "desirable" customers, it's also important that institutions don't overlook other demographics that are now considering mobile features in their banking decisions. For example, military members who are frequently relocated can benefit greatly by the flexibility and real-time money management capabilities mobile banking programs have to offer.�