Financial services technology specialist Fiserv has released a white paper with recommendations for how banks and credit unions can maximise mobile banking adoption and usage rates among consumers.
Entitled ‘Exceeding the Mobile Adoption Benchmark: Effective Strategies for Driving Greater Adoption and Usage,’ the complimentary white paper offers strategies to optimise mobile banking investments, with a focus on the three key areas of product investment, marketing and frontline staff engagement.
The company says that the ability to add and retain mobile banking users is vital to financial institution (FI) growth and profitability. Research has shown mobile bankers to be valuable customers and mobile banking capabilities – or lack thereof – can influence a consumer’s decision about where they bank.
Its analysis shows that successful FIs have mobile adoption rates of at least 40% of their online banking base, and this can be considered a benchmark figure by which banks and credit unions can measure their own mobile banking adoption rates.
In the white paper, Fiserv outlines three main priorities for FIs looking to boost mobile banking adoption and usage:
- Product Investment: Consumers are no longer content with simple functionality, such as the ability to check balances. Instead, consumers increasingly expect a wider range of mobile banking features such as mobile deposit, tablet-friendly user interfaces, peer-to-peer (P2P) payments and actionable alerts. Fiserv reports that FIs that offer mobile deposit average 60% more logins and transactions per month compared to their counterparts that do not offer the feature. Investing in next-generation capabilities is vital to mobile banking success.
- Targeted Marketing: Achieving high levels of adoption for mobile banking requires a comprehensive, integrated marketing program. FIs can leverage smart app banners, cross-selling techniques and pop-up pages within online banking to raise awareness of mobile banking and drive enrollments. Communication through social media channels should also be considered as it can be extremely useful for driving engagement, particularly among younger consumers.
- Staff Engagement: An FI’s frontline staff play a key role in encouraging mobile banking enrollment. Both branch employees and call centre staff can be turned into evangelists for mobile banking, capable of driving new registrations at a significant rate. Training staff on how the mobile banking service works, how to enroll new users, and how and when to promote it can lead to significant adoption dividends.
“While many FIs are eager to go beyond initial levels of mobile banking adoption, product deficiencies, ineffective marketing and lack of knowledge among frontline staff can hinder their efforts,” said John Moon, senior manager of adoption marketing, digital channels, Fiserv.
“The combination of next-generation mobile banking features, targeted promotion and staff training can help banks and credit unions reach higher levels of adoption and usage for mobile services, and achieve a higher return on their investment.”
The most interesting outcomes of PSD2 will be derived from companies combining open banking with data from other areas like social media or government, argued Miles Cheetham, Open Banking Ltd.
The architecture of financial markets has changed and we will soon see the end of the last eight years of prosperity, said Stefan Bielmeier, chief economist and head of research at DZ Bank.
There are various ways for financial institutions to benefit from advanced technologies and business models provided by FinTech's. Whether a business' approach is radical or incremental, data management can help a company to increase their return on investment, argues André Casterman, INTIX.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.