Three Top Trends in Mobile Banking: What You Need to Know

June 21st, 2017

mobile-banking-6-21-17.pngIt comes as no surprise that today’s banks need mobile solutions to stand a chance of satisfying their customers. You’ve probably heard of the Big 5 of mobile banking, the essential features that are now an absolute must-have for the modern customer, including: the ability to transfer funds between accounts, pay bills, make deposits, locate ATMs and branches and conduct peer-to-peer payments.

These essentials are an excellent starting point for banks developing mobile solutions. However, the truth of the matter is that the basics are no longer enough. Any bank that has entered the 21st century provides their customers these capabilities. In order to differentiate their products, drive profits and keep their customers satisfied, modern banks must find ways to use mobile to offer customers more value and convenience and be more relevant to their daily lives.

Many of the largest banks have already realized this and have been working diligently to develop creative new solutions. Perhaps that’s a large part of why these banks have managed to pull ahead of community banks in customer satisfaction rates, a surprising development considering that community banks are commonly thought to have the personal touch.

However, who’s really owning the mobile banking space are companies that aren’t banks at all. Apps like Venmo have taken the mobile banking world by storm and are edging banks out of their rightful place as financial service providers. To stay on top of the latest mobile banking trends, banks should keep an eye on three larger mobile trends and follow suit with their own offerings.

So, what’s the latest?

No. 1: Intuitive Interfacing
The banks who have been most successful with their mobile banking have found ways to make the experience as intuitive for their customers as possible. One of the ways they’ve done this is through eliminating complicated menus and interfacing mobile capabilities into the features that customers are already familiar with.

For example, customers can now use their smartphones’ voice control to request and make payments from PayPal’s Venmo, one of the most popular peer-to-peer payments apps. Users don’t have to navigate the app—or even directly use it—to transfer money between friends. Instead, they can simply instruct their phone and their payments are taken care of.

To ensure their mobile offerings are attractive, banks should first and foremost make sure they’re easy-to-use and provide customers with a seamless experience they don’t have to think about twice.

No. 2: Artificial Intelligence
Voice-activated devices like Amazon’s Alexa have recently introduced artificial intelligence into the mainstream. Banks on the cutting edge have already recognized this technology’s potential to provide an enhanced customer experience that offers more value and have begun capitalizing on it.

Perhaps the best example of this is Erica, Bank of America’s soon-to-be-released chatbot, which can now go beyond the Big 5 basics to impart personalized advice on customers’ finances.

Companies outside of financial services are finding creative ways to utilize artificial intelligence as well. One interesting example is the app Digit, which helps the user build savings by connecting to his or her checking account and automatically making transfers to an FDIC-insured savings account based on income and spending activity. Users no longer need to think about practicing better financial habits; instead; they have an algorithm to do it for them.

No. 3: The Subscription-Based Model
Subscription-based services like Spotify, Netflix and Amazon Prime are influencing purchase trends and consumers’ expectations of the companies they work with, including their banks. These fee-based services offer value at an affordable price and can easily be controlled and customized based on the user’s need.

Also interesting to note is that a recent survey indicated access to discounts as a primary impetus for customers to not switch from their current bank. Money-saving deals can promote better fiscal health and allow customers to save more than they’re able to make in today’s interest rate environment. Plus, the bank is at the point of sale whenever consumers make a purchase.

The payment models utilized by services such as Amazon can clue banks in to how they should structure their own mobile offerings. And in fact, the top six banks have all been developing their own rewards-based shopping programs, which may be part of the reason why they’ve managed to pull ahead in customer satisfaction.

These are just a few of many mobile trends that are currently all the rage in banking. But it’s important to remember that mobile is ever-evolving, and today’s trends won’t be tomorrow’s. Banks must be ever-vigilant about observing what’s happening in the mobile space and think about ways they can keep innovating their own offerings to stand apart from the crowd and make sure their products and services please their customers.

ddefazio

Dave DeFazio is partner at StrategyCorps, a Nashville-based firm that provides financial institutions across the U.S. with mobile and data solutions that protect and grow customer relationships. Connect with him at dave.defazio@strategycorps.com or on LinkedIn.