Mobile banking is growing at an astonishing rate throughout the US and the rest of the world. A recent report produced by AlixPartners, a global consultancy firm located in Chicago, suggested that over 60% of consumers in the US consider mobile accessibility to be one of the most important features when performing everyday banking tasks and choosing a banking provider.
The overall availability and accessibility of mobile banking features now plays a crucial role in the decision making process when it comes to switching bank accounts. The AlixPartners report indicates that mobile is now a core requirement for technology savvy consumers who demand accessibility to banking features via smartphones, tablets and an ever increasing number of wearable devices. The reality is that banks who can’t offer immediate mobile accessibility for their banking customers are falling behind the competition. This means there are huge commercial (and technical) opportunities for established high street banks and challengers seeking to exploit mobile capability as a means of providing a slick fintech experience for consumers.
As consumer demand for mobile app banking services increases at rapid pace, banks are being forced to find new and innovative ways to deliver products and services via smartphones, tablets and smartwatches. But what is causing the shift and why are consumers switching in their droves to banks who provide a slick and intuitive mobile app experience? Today we’re exploring the 5 key reasons why banking customers are switching to mobile devices to perform everyday banking tasks. For more fintech news, why not subscribe to the Waracle blog?
1.) Ease of use
Modern mobile banking apps facilitate a rich and seamless experience for banking customers. Ease of use is one of the main drivers when it comes to consumers making the switch from traditional banking methods and practices to mobile. Gone are the days when consumers need to visit a high street retail outlet to perform simple banking tasks. Nowadays the best mobile banking apps enable consumers to perform highly complex tasks using a simple swipe or a tap on a mobile device. Mobile banking enables consumers to create custom alerts and push notifications which enable banking customers to stay constantly connected in terms of understanding updates to their account and managing account performance. Not only that, but consumers are able to access these features on the move and from any location. Tesco bank for example enable you to check your balance at a glance on your phone without having to sign in. If you’re on the lookout for a great mobile banking app, check out B, Clydesdale.
Possessing the ability to check balance status whilst on the move is an essential feature for demanding mobile consumers who expect information to be immediately available at the touch of a screen. Being able to check balance on the move actually means that consumers are in a position to make informed buying decisions and may spend more whilst out shopping in traditional ‘bricks and mortar’ retail outlets. Very often consumers will delay a purchase decision unless they’re completely aware of how much money is available in their account. Being equipped with these simple features whilst on the move provides tremendous value for mobile banking customers and high street retailers alike.
Ease of use is a critical consideration for most (if not all) mobile users in today’s connected world and 24/7 accessibility is changing consumer spending behaviour and the way in which we view traditional banks.
Whilst some banking consumers still prefer traditional banking practices such as visiting the local high street branch (recent reports suggest over 600 branches closed last year in the UK alone), the reality is that most consumers are now demanding the ability to access essential banking services and features whilst on the move using a mobile device. The beauty of mobile banking is that it arms consumers with immediate access to the financial data that matters most to them. Mobile banking offers a massive range of immediately accessible features and enables consumers to access services such as the ability receive push notification balance updates, transfer money to different accounts and create new accounts, all at the touch of a button.
One of the key drivers in terms of consumer usage of mobile banking apps is the availability of a secured WiFi connection. This is one of the key barriers in developing economies when it comes to the adoption and usage and mobile banking services. Where a secure WiFi connection is available, consumers can immediately access a vast plethora of mobile banking features. In areas where a secure WiFi connection is absent (or intermittent), the adoption and usage of mobile banking services is more complex and challenging.
Right now, in the world of mobile banking, the top banks and many of the challengers are competing to win new customers (and satisfy existing ones) through the provision of innovative new features that provide greater accessibility. Bank Midwest now provide a feature that enables mobile banking customers to check and deposit funds by snapshotting an image of a cheque using a smartphone or tablet device. This is just one of the many innovations currently transforming the world of mobile banking and providing increased accessibility for consumers across the globe.
3.) Mobile-only banks
With the advent of apps and the rapid proliferation of new mobile devices over the past decade, it was only a matter of time before consumers would shift to mobile banking. Nowadays most of the major banks possess mobile apps that enable customers to check their balances, transfer funds and setup up direct debits/standing orders etc. The problem being that most of these banks are still heavily embedded in running costly high street branches. As consumers switch to mobile to perform banking tasks, traditional banks are finding that operating multiple high street branches is costly when compared to the overheads (and value) associated with mobile-only challenger banks. For well-established banks with a physical retail presence on the high street, mobile is seen as a service augmentation rather than a core feature and this is helping to create an opportunity gap for mobile-only entrants into the banking market.
Mobile-only challenger banks are currently acquiring thousands of new customers every day and are particularly popular amongst millennials. The new mobile-only banks do not have the costs associated with running physical branches on the high street and are perfectly positioned to meet the needs and requirements of the modern, mobile-savvy banking customer. If you’re interested in learning more about the best mobile-only challenger banks, check this out.
4.) Switching to Paperless
Consumers are increasingly switching to mobile banking as an efficient means of decluttering through reduction in use of paper based bank statements. The fact is that paper creates clutter around the house. This means that bank statements and other essential documents can easily become lost or damaged. Many banks will now offer a financial incentive for switching to paperless mobile banking (some banks will levy a charge for access to historic paper based statements and other documents). Switching to paperless enables consumers to feel confident and relaxed in the knowledge that crucial, highly personal banking data is stored safely in the cloud and immediately accessible through a mobile app. For many banks, the challenge is being able to facilitate the mobile banking features that consumers now crave. Whilst some consumers still prefer to manage their bills in physical, paper-based format, the majority of consumers are now turning to mobile for instantaneous, paperless banking updates and functionality.
5.) Increased Security
Some consumers are still worried about security when it comes to making the switch to mobile banking. Even customers that have taken the leap and switched to mobile banking still prefer to perform certain specific tasks and day-to-day banking activities via a local high street branch. But the reality is that many consumers who have already made the switch to mobile are reaping the benefits of increased security. Many consumers don’t realise that mobile banking can actually offer an enhanced level of security due to the benefits of immediate accessibility. Because consumers can now access mobile banking facilities at the touch of a button, this enables them to keep on top of account related transactions in real-time which helps to quickly flag up potentially fraudulent activity. Many mobile banking providers provide push notification services that enable consumers to be notified as and whenever the account is active, helping them to weed out fraudulent transactions on the move, at the touch of a button and before they even happen.
The final word on why consumers are switching to mobile banking
Mobile banking is revolutionising the world of finance. At Waracle, mobile app developers, UK, fintech is now one of our strongest sectors. The global proliferation of smartphones, tablets and wearables is now creating enormous demand for instantaneous mobile banking services and features. Consumers now demand a slick user experience and immediate access to a vast plethora of banking related features and functionality. For banks already active in mobile app development this presents huge opportunities. For banks who have not yet developed a coherent mobile app development strategy, or for banks in the process of developing a strategy, there is now enormous pressure to develop mobile apps that can satisfy the needs of increasingly demanding banking consumers. Very often, the hardest piece of the puzzle for banks is working out how to develop the mobile apps that consumers demand. This is something we, at Waracle, UK can help you with – contact us today!
Waracle, part of the Exception Group, are the UK’s leading digital solutions specialist. Since 2008 Waracle have engaged with large UK and international organisations to plan and execute their digital product strategies. Waracle now have offices in Dundee, Glasgow, Edinburgh and London with a rapidly growing team of industry leading UX designers, scrum-masters, iOS, Android and Hybrid developers, IoT, Voice (we’re Amazon Alexa Skills Approved) , QA and App Store Optimisation experts.