By: Joe Gillen
There are several factors driving the climbing adoption rates of mobile banking, ranging from convenience and affordability to stronger money management skills and consumers' desire for more mobile integration. Bank consultants have long argued that mobile channels are the wave of the future, and to keep pace with the evolution of mobile features, banks and credit unions must understand the various components that fuel interest in this feature. A recent report found that another factor has emerged that will both influence consumers' decisions to participate in mobile platforms and raise the bar on mobile features: smartphone cameras.
Built-in cameras in iPhones, Androids and other smartphones have already proven themselves necessary in facilitating remote check deposit applications - currently the most popular and in-demand feature of mobile technology. Data from Javelin Strategy and Research found that 40 percent of all consumers and 66 percent of mobile bankers consider remote deposit capture to be desirable, and 25 percent of consumers and 48 percent of mobile bankers have utilized the feature in the past 90 days. Another 15 percent said they want access to this feature, but their bank does not offer it. The number of financial institutions that offer this service has expanded greatly in recent years, climbing from 22 percent in 2011 to 64 percent in 2013.
Smartphones expected to enable PicturePay
In the future, however, mobile capabilities are expected to expand to PicturePay, and a small handful of banks already have this benefit in the beginning stages of development. Citing new data from Javelin, the Financial Brand reports that a growing number of consumers and existing mobile users are also interested in using smartphone camera features to pay their bills. Research shows that roughly one in five consumers said they would definitely use PicturePay features if they were offered by their financial institution.
Although most community banks and credit unions offer mobile banking programs to their customers and members, it's important that they continue to branch out and provide customized features - such as PicturePay - to set them apart from larger competitors. Local banks and credit unions have already gained a strong reputation for providing affordable and personalized services. Keeping pace with larger banks that are offering enhanced mobile features will allow local institutions not only to remain competitive, but to attract and retain more customers who want a personalized and integrated banking experience.