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Why Banks Need to Expand with the Tech Savvy Population

Eric Wachs |

When was the last time you visited your bank? Probably less recently than you realize. If you needed to perform a rudimentary task like check your balance, transfer funds from your savings to your checking account, or even deposit a check you may have just reached for your smartphone or tablet.

Mobile banking is thriving: currently 33 million customers use their mobile phone to access their bank account; by 2016 Aite projects that this number will grow by 300 percent. According to the Varolii Corporation survey of mobile banking consumer experiences, 44 percent of smartphone users have downloaded and regularly use mobile banking apps. Tablet usage is increasing too: 34 percent of American adults own a tablet according to the Pew Research Center. As customers become more adept at using technology for financial tasks, banks need to become equally as skilled at providing for their customers in this environment.

Currently, mobile banking is limited to basic banking functions. Some mobile apps only enable customers to check balances and transfer funds. Many times customers go through the same experience whether they access a bank’s website on a desktop, a tablet, or a smartphone.

Online banking on a smartphone or tablet does not provide for the best consumer experience either. Many times customers are brought to the same site no matter which device they are using. As you can imagine, applying for a new credit card takes much longer on a smartphone with a 3.5-inch screen than it does with a desktop computer.

As the number of smartphone and tablet users grows, there is an opportunity for issuers to expand mobile and online services offered to reach a technologically savvy population. One thing issuers can do is optimize mobile sites so that the experience on a tablet is just as efficient as the experience on a desktop computer. Additionally, mobile apps can be revamped to provide the capability of advanced banking functions such as the ability to search for new financial products. Different demographics have different needs and uses when it comes to mobile and online banking. Creating consumer profiles and evaluating current customer actions will help in creating the best optimization strategy and ultimately expand customer acquisition.

Topics: Mobile, Payments Strategy

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