Insights, November 3, 2020
Social Distancing Solutions
Social Distancing Solutions
Introduction
Mobile technology is growing rapidly and already conquers the global banking and payment industry. Banks aim at offering convenient mobile tools to make everything easier; from checking balances to making deposits on the go. The benefits for banks are various:
- Become customers' 24/7 companion
- Introduce value-added services
- Enhance customer loyalty and retention
- Increase brand differentiation
- Deliver banking services at a significantly low cost
Banks that invest in mobile will win the “Millennials battle”
Banks are already investing in mobile. They develop new smartphone apps, add new functionalities and features such as P2P payments and fingerprint login, and put a lot of marketing effort at educating their customers on the best use of their products. This has resulted in an unprecedented mobile banking adoption among customers during the last 10 years.
Millennials have matured into adulthood making the ‘’Digital Age’’ a real thing. They have begun to establish a new normal that banks will need to address in order to stay competitive in the years to come. Millennials have grown up with technology, in order to gain their banking loyalty as they enter their peak earning years, banks must meet their high digital expectations by treating mobile as a full service channel.
Mobile Banking: From a passive monitoring channel to an active transaction medium
- 6 out of 10 users of smartphones have a banking app on their phones to check their balance and transaction history
- 50% of smartphone users (68% under the age of 35 and 31% over the age of 55), are active mobile banking users
- A staggering 75% of banking app users log in every week
User Experience & Security
As consumers become more tech savvy, their expectations rise, too. In fact 48% feel frustrated and believe that the company doesn’t care about them, when a site doesn’t work well on mobile. Also, 1 in 6 people switching banks, say a poor mobile banking experience urged them to look for an alternative solution.
Banks are heavily concerned about keeping fraud in check by double-checking and authenticating the identity of the device and the user. Security concerns that once discouraged consumers from using such applications belong to the past. As Experian puts it, “consumers now see mobile banking as a way to receive fraud alerts at their fingertips 24 hours a day”.
