There's been a significant shift in the retail landscape and the way people prefer to purchase. Today's consumers expect more than just the ability to buy a product or, in the case of credit unions, conduct basic transactions. Instead, they expect a full-fledged experience.
Big banks are moving up the ranking and overtaking smaller banks in terms of satisfaction. They simply have what the mobile services customers want, when they want it. And they effectively communicate what they have. What good is having services if your customers don't know about it? It's like having a giant diamond but never being able to wear it. It's [past] time to take the plunge and go beyond the basics.
Big banks have been committed to working out their mobile strategies over the past two years and are now unveiling the dramatic results they’ve achieved. According to AlixPartners, big banks controlled 67 percent of the primary banking relationships by the second quarter of 2014, while credit unions had 14 percent. Mid-size banks controlled 11 percent, community banks 4 percent and all others at 4 percent.
Originally posted on CUBroadcast.com April 7, 2015
According to StrategyCorps Partner Dave DeFazio, there are five mobile banking "must haves" today:
- Mobile banking
- Mobile bill pay
- Mobile deposits
- ATM/branch locator
- P2P payments
If you have those, you are meeting the needs of today's increasingly mobile consumer. If not, you better get on the stick. But, as we all know, the FI market continues to evolve at a breakneck pace and CUs must be ready for it. So we asked Dave what's on the not-so-distant horizon when it comes to mobile services -- venturing beyond the big five, if you will, that keeps your members happy and loyal to your credit union.
The five biggest retail banks — recognized by the brand names U.S. Bank, Chase, Bank of America, Citi and Wells Fargo — control over 50 percent of total assets in the U.S. and are driving the mobile banking agenda. In a race to meet the mobile transaction needs of their customers, these banks have all conquered the most basic services that soon almost all banks will have—mobile banking, mobile bill pay, mobile deposit, ATM and branch locators and P2P payments. Now in phase two of mobile banking, these banks are in an arms race to further engage with customers’ mobile lifestyles, particularly by helping people save money when they shop.
Toronto-Dominion Bank’s (TD) recent partnership with Moven is a material strategic move to help the bank’s customers advance their personal financial fitness. Moven, along with other nontraditional mobile banking providers like Simple and GoBank, are challenging the financial industry’s line of thinking of what a mobile banking app can be. These types of bank apps offer budgeting tools that can help customers prevent overspending and learn how to more effectively save money.
As more and more consumers are relying solely on their mobile devices, banks have to provide mobile products that their customers want and need. In this video, Dave DeFazio of StrategyCorps shares how some community banks are moving their mobile banking applications beyond the standard transactions.