Banks’ huge investments in innovation may not yet be on the mark in creating experiences their customers want, according to new research from Genpact. The survey shows that customers want both the convenience of new technology and the personal service they’re used to with traditional channels, underscoring challenges that financial institutions face in achieving return on investment from digital transformation initiatives.
Tag: mobile banking
The most recent Insight Summary Report from Mercator Advisory Group’s CustomerMonitor Survey Series reveals that mobile banking is growing rapidly in the United States. According to the report, titled Digital Banking: Improvements Needed to Compete with Fintech, 64% of U.S. consumers with at least one account at a bank, credit union, or other financial institution perform mobile banking activities, but they are more likely to banking via their mobile device using the financial institution’s website than a mobile banking app.
“A recent KPMG report says that 57% of legacy banking institutions are only in the planning phases of upgrading their systems to provide more mobile digital banking services. And fintech competitors are “nipping at their heels,” happy to take advantage of what is clearly a “disconnect” between today’s financial services consumers and the banks that serve them,” Michael Salo writes in business2community.
The trend of mobile banking presents significant opportunities for banks to shift routine transactions from high-cost physical channels to much lower-cost digital channels and deepen customer relationships, according to a new report from Bain & Company. Mobile banking is having the biggest impact on routine banking activities: 64% of mobile banking users in the U.S. say that the future ability to use their smartphones or tablets to check account balances would be highly valued.
According to a new study from Verve Mobile, consumers are not only comfortable and willing to use their mobile devices for banking activities, but they expect more, easy-to-use mobile options from their financial institutions. The smartphone is the overwhelming platform of choice for mobile banking at (63%). There is a great opportunity for additional growth for financial service institutions who address pent-up demand for sophisticated mobile account services.
Despite security concerns, more consumers are using mobile banking services. These consumers represent a unique demographic niche that cuts across traditional age and income categories. Banks that target users of mobile banking services will enjoy strong profits from loyal customers and grow market share as acceptance of this service grows.
Mobile banking services have been adopted by a core group of customers but until now, growth rates have been slow. This banking form is expected to rise rapidly as the economy improves and as banks become more willing to invest in the technology necessary to enable these services. An IDC Financial Insights study suggests that as younger consumers, who are heavy users of social networks, move into the professional world they will expect and want to conduct their banking needs through familiar mobile channels.