By: Joe Gillen
Mobile banking is evolving at a faster pace as more consumers rely on these apps to conduct key financial transactions. While most banks have already implemented the highly-demanded remote check capture deposit feature, some are now seeking to evolve their mobile platforms further by creating more innovative products. Following U.S. Bank's announcement that it has developed and unveiled the first Photo Bill Pay app, more banks and credit unions are likely to follow suit in order to gain a competitive edge in a rapidly growing economy.
Photo bill pay has been referred to as the "next big thing" in mobile platforms, not only because it affords consumers the convenience of paying bills on the go with the snap of a picture, but also because it may facilitate customer acquisition. One of the consumer's most common complaints about the banking industry is the difficulty in switching to a new financial institution. In addition to fees that may accompany transferring account funds, many consumers do not look forward to inputting account data into their profiles for online bill pay. Photo bill pay is expected to serve as a solution to this, with the hopes that more reticent consumers may make the decision to switch to a new bank, according to the New York Times.
Marketing the new app
The photo bill pay app works by enabling users to simply take a picture of their paper bill statement with smartphone. Account details, such as the amount owed and due date, will then automatically be entered into their bank account details. This can be a convenient and enticing feature for consumers looking to switch banks, and may also help consumers on the go avoid late bill payments and the fees that often accompany them. These benefits are likely to be included in banks' marketing platforms when introducing the new features.
More banks are expected to incorporate this app at increasing rates, much like they did when the first remote check capture deposit feature was introduced. Customer satisfaction studies show that mobile banking innovations are driving acquisition and retention, making it important that small banks and credit unions maintain their competitive edge by investing in mobile technology. Research shows that while personal relationships and interaction are still important in attracting customers, mobile banking will continue to play an important part in appealing to potential customers in the future.