By: Joe Gillen
Few people would consider visiting a bank that failed to offer basic features, such as checking and savings accounts or loan products. These features have become so ingrained and natural in banks and credit unions that failing to offer them may cause them to lose legitimacy in the eyes of most consumers. The same sentiment may now be said for mobile banking, which has emerged as a vital, rather than value-added service among most consumers who are shopping around for a new institution, according to a recent analysis.
The Financial Brand recently named mobile banking channels as a "must have" among today's customers, many of whom eliminate banking options by the complexity and comprehensiveness of their mobile applications and features. The company cited a recent poll from FindABetterBank.com, which discovered that nearly a fifth of all shoppers looking for a new institution considered mobile banking a "must have." Of these shoppers, 88 percent were already current mobile users. The study's authors theorized that as more people utilize these features, the number of people who will become accustomed and seek out these channels when shopping for a bank will grow.
On the other end of the token, the same report found that failing to provide mobile banking will not encourage existing customers to leave in search of this feature. Therefore, it appears that these innovations are largely crucial to customer acquisition, rather than retention.
Improving customer acquisition figures
One of the most expedient ways banks and credit unions can boost their customer acquisition is by polling existing mobile banking customers on their experiences with the feature. In addition to measuring the quality of these apps, inquiring with customers about which features they would like to see in the future can also be useful when developing new apps to target new groups. There are certain features that have emerged as almost necessary, such as the ability to deposit checks remotely. This is typically the most sought-after mobile banking feature most consumers look for when switching banks.
In the future, however, picture pay will likely evolve as another coveted and in-demand feature that consumers may seek out. Some institutions are already in the testing stages of this feature and plan to roll it out in the foreseeable future. As mobile banking becomes more complex, institutions should also make innovation and research and development part of their mobile banking strategies in the coming years.