What's Next for Mobile Banking?

By Dave DeFazio, Partner
Originally posted on ABABankMarketing.com

Convenience and innovation heighten customer loyalty

What do reimbursing your friends for dinner, ordering your favorite coffee drink, requesting a ride home and adjusting your A/C have in common?
All of these actions can now be done from a mobile device.

The prevalence of mobile in modern society is undeniable. We’ve grown increasingly reliant on mobile technology to help us manage our day-to-day lives, so the question remains: Why are many financial institutions not leveraging mobile technology to its highest potential?

Many would argue that it comes down to a simple lack of resources. While large banks have the capital to help them develop mobile innovations or buy companies that have already successfully introduced mobile technology into the market, smaller banks often don’t have access to such resources.
Surprisingly, smaller banks don’t always perceive this disparity as a disadvantage. After all, large banks may be ahead of the game when it comes to their mobile offerings, but community banks have the personal touch to better connect to their customers.

At least, that’s what many of them would like to believe.

The truth of the matter is that smaller banks have slowly been overtaken by big banks when it comes to customer satisfaction rates. In fact, according to research conducted by JD Power, 2016 marked the sixth consecutive year that big banks’ satisfaction levels have improved, with Chase Bank now in the lead. For the first time since 2010, satisfaction levels of midsize banks actually dropped.

So what exactly does this mean? Customer satisfaction and the robustness of mobile offerings are becoming synonymous.
Convenience is trumping service, and smaller banks must learn the language of mobile to remain competitive. Not only that, but they must be able to keep innovating so they’re ready to meet their customers with the latest advancements once those customers are ready for them.

Let customers in on the secret.

Many financial institutions have already begun offering mobile solutions. The problem lies in the fact that many of these banks and credit unions haven’t been able to successfully communicate the availability of mobile offerings and their benefits to customers.

Having mobile solutions on hand is the first step. But if customers don’t recognize their value, mobile capabilities will do little to improve satisfaction.

That’s why it’s crucial for banks to let their customers in on the secret. Tell your customers what it is you offer and why they need those capabilities to have better financial—and life—experiences.

First Bank has mastered this art through their advertising. Take this commercial of theirs:

The scene opens on an antiquated small town, where a young boy is gazing longingly at a litter of puppies in the bed of a truck. He picks up his favorite puppy, turns to his dad and asks “Can I have him?” His dad rushes to the ATM only to discover that it’s out of money. By the time he finally has the cash in hand, another girl has left with the puppy. The commercial closes with the message that, if the father had been using First Bank’s mobile person-to-person payments, he would have been able to pay in time to get the puppy for his son.

The bank has done an excellent job of demonstrating why their customers will not only benefit from their mobile offerings, but need them to realize their dream purchases. First Bank has positioned themselves as essential to their customers’ everyday lives.

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