The Future of Mobile Banking: Building a Customer Experience That Starts and Ends with the Customer
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The Future of Mobile Banking: Building a Customer Experience That Starts and Ends with the Customer

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Summary of annual mobile banking study of US banking customers. Based on 2013 study conducted during Q1. More than 3,000 participants. Includes slides on revenue opportunity, mobile photo bill pay, ...

Summary of annual mobile banking study of US banking customers. Based on 2013 study conducted during Q1. More than 3,000 participants. Includes slides on revenue opportunity, mobile photo bill pay, mobile account opening, voice authentication and voice recognition. Also includes analysis of usage of remote deposit capture. Shows the two key barriers to faster mobile adoption and what banks must do to overcome them.

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The Future of Mobile Banking: Building a Customer Experience That Starts and Ends with the Customer The Future of Mobile Banking: Building a Customer Experience That Starts and Ends with the Customer Presentation Transcript

  • The Future of Mobile Banking: Building a Customer Experience That Starts and Ends with the Customer Michael J. McEvoy Managing Director ath Power Consulting +1.617.243.9500 September 25th 2013
  • © ath Power Consulting Corporation. All Rights Reserved. Context • The 2013 ath Power Mobile Banking Study™ • Survey Participants: 3,201 banking customers, nationwide – 1,502 non-mobile banking customers – 1,504 mobile banking customers – 195 small business owners, using business mobile banking services • Institutions Included: 380+ banks and credit unions
  • © ath Power Consulting Corporation. All Rights Reserved. • Almost 50 percent of customers log in at least twice weekly • High frequency of interaction opens potential for new ways of serving customer • More interaction means improved customer loyalty and retention Source: The 2013 ath Power Mobile Banking Study™ Migration to Mobile Creates New and More Frequent Opportunities to Engage 4% 14% 30% 21% 23% 8% Multiple Times a Day Daily 2-3 Times a Week Once a Week 1-2 Times a Month Less than Once a Month 48%
  • © ath Power Consulting Corporation. All Rights Reserved. Raising Adoption and Usage by Improving Customer Experience
  • © ath Power Consulting Corporation. All Rights Reserved. 10% 11% 13% 14% 31% 39% 42% Wireless data charges would be too high Too difficult to read screen My phone is not supported I don't trust the technology I don't need it Security concerns I don't possess an appropriate device What are the main reasons why you have decided not to use mobile banking? What aspects of security are your greatest concern? 59% 64% 64% 82% Malware or viruses on my phone Losing my phone or having it stolen Interception of my calls or data Hackers accessing my phone Impediments to Faster Mobile Adoption: Security Concerns Need to be Addressed Source: The 2013 ath Power Mobile Banking Study™
  • © ath Power Consulting Corporation. All Rights Reserved. 10% 11% 13% 14% 31% 39% 42% Wireless data charges would be too high Too difficult to read screen My phone is not supported I don't trust the technology I don't need it Security concerns I don't possess an appropriate device 22% 36% 73% I don't know enough about mobile banking I prefer branch banking Online banking meets my needs Why do you feel you do not need mobile banking? Impediments to Faster Mobile Adoption: More Compelling Offering Needed for Online Banking Customers Source: The 2013 ath Power Mobile Banking Study™ What are the main reasons why you have decided not to use mobile banking?
  • © ath Power Consulting Corporation. All Rights Reserved. 2% 19% 57% 22% Definitely will Probably will Probably will not Definitely will not Definitely will; 1% Probably will; 36% Probably will not; 53% Definitely will not; 11% Do you plan to use mobile banking in the next 12 months? [if 'probably will not' or 'definitely will not'] Do you think you will ever use mobile banking? 4 Out of 5 Non-Users of Mobile Banking Have No Plans to Become Mobile Customers in Coming Year • Current mobile banking offerings are not sufficiently compelling for many non-users • Value-added additions will draw new customers and improve usage among existing customers Source: The 2013 ath Power Mobile Banking Study™
  • © ath Power Consulting Corporation. All Rights Reserved. Current Usage and Future Directions
  • © ath Power Consulting Corporation. All Rights Reserved. 21% 23% 33% 36% 41% 47% 51% 61% 71% 86% Transfer Funds Outside Bank RDC Check Credit Available ATM / Branch Locator Receive Account Alerts Pay Bills Check Cleared / Payment Received Transfer Funds Inside Bank View Recent Transactions Check Balances Please indicate the banking transactions you conduct using your mobile device Mobile Banking Capabilities Are Still Being Rolled Out, Audiences Are Receptive and Eager for More Source: The 2013 ath Power Mobile Banking Study™
  • © ath Power Consulting Corporation. All Rights Reserved. Which mobile devices do you use to access your mobile banking account? 7% 37% 90% Regular Cellphone Tablet Smartphone How Consumers Currently Access Mobile Banking: Emergence of the Tablet • Concept of ‘Tablet Banking’ becoming more important as tablet penetration grows • Emergence of a new “Channel”? Source: The 2013 ath Power Mobile Banking Study™
  • © ath Power Consulting Corporation. All Rights Reserved. Use of Technology to Improve Customer Experience Will Gain Importance as Expectations Rise Some Examples: • Remote Deposit Capture - most desired capability, still being rolled out • Mobile Photo Bill Pay • Voice Recognition / Assistance • Voice Authentication • Mobile Account Opening Have you used remote deposit capture at your bank? Why have you not used it? (select all that apply) Source: The 2013 ath Power Mobile Banking Study™
  • © ath Power Consulting Corporation. All Rights Reserved. Mobile Bill Pay: Switching Banks Becomes Less Burdensome • Remote Deposit Capture • Mobile Photo Bill Pay • Voice Recognition / Assistance • Voice Authentication • Mobile Account Opening
  • © ath Power Consulting Corporation. All Rights Reserved. • Remote Deposit Capture • Mobile Photo Bill Pay • Voice Recognition / Assistance • Voice Authentication • Mobile Account Opening Yes, 32% No, 55% I don't know; 14% Would voice assistance encourage you to use more mobile banking services? Making it Easier to Use ‘Mobile’: Voice Recognition / Voice Assistance Source: The 2013 ath Power Mobile Banking Study™
  • © ath Power Consulting Corporation. All Rights Reserved. For Added Security: Voice Authentication 45% 28% 55% 45% 27% Do concerns over security discourage you from using certain mobile banking services? Would voice authentication encourage you to use more mobile banking services? Concerns Over Security Discourage Use of Mobile Services Yes No Maybe • Remote Deposit Capture • Mobile Photo Bill Pay • Voice Recognition / Assistance • Voice Authentication • Mobile Account Opening - Would Impact Both Adoption and Usage Source: The 2013 ath Power Mobile Banking Study™
  • © ath Power Consulting Corporation. All Rights Reserved. Direct ‘Recruitment’ of Mobile Customers: Mobile Account Opening Example: ‘Mobile Photo Account Opening’ • Upload photo of driving license to initiate account opening • App. is pre-populated with data from drivers license – eliminates / reduces need for data entry • Initial account funding possible through RDC • Remote Deposit Capture • Mobile Photo Bill Pay • Voice Recognition / Assistance • Voice Authentication • Mobile Account Opening
  • © ath Power Consulting Corporation. All Rights Reserved. Building a Customer Experience that Starts and Ends with the Customer
  • © ath Power Consulting Corporation. All Rights Reserved. Using your mobile phone or tablet, have you done any of the following in the past 12 months? 36% 38% 39% 39% 52% 63% Made Purchases Through a Mobile App. Made Purchases Through a Mobile Website Researched Product on Mobile Device and Purchased In-Store Researched Product on Mobile Device and Purchased Online Using Computer In-Store Price Comparison Researched Product on Mobile Device Customers Increasingly See ‘Mobile’ as End-to-End Solution – Banks Need to do Likewise • Customers are ahead of banks in their use of mobile technology, are ready for more Source: The 2013 ath Power Mobile Banking Study™ • Opportunity to learn from non-bank competitors: develop user experience model from customer standpoint – ensure it all ‘starts and ends’ with the customer
  • © ath Power Consulting Corporation. All Rights Reserved. Added Bonus: Revenue Opportunity Retail Customers Indicate Greater Willingness to Pay for Mobile Since Last Year 13% 6% 81% 19% 13% 68% $1-2 $3+ Not Willing to Pay 2012 2013 What is the most you would be willing to pay per month for the convenience of mobile banking capabilities? • TAKEAWAY: Reduced customer resistance to mobile fees occurring while banks are improving the mobile offering with RDC, etc. Source: The 2013 ath Power Mobile Banking Study™
  • © ath Power Consulting Corporation. All Rights Reserved. Building a Customer Experience that Starts and Ends With the Customer A Few Takeaways: • Improving adoption will mean addressing security concerns and providing a more compelling offering for online banking customers • Adding value-added capabilities to ‘mobile’ such as RDC helps improve: – adoption – usage – revenue potential • Optimize ‘Customer Experience’ by tailoring it to the device type / channel • Customers are ahead of banks in their use of mobile technology, are ready for more • Develop user experience model from customer standpoint – ensure it all ‘starts and ends’ with the customer
  • The Future of Mobile Banking: Building a Customer Experience That Starts and Ends with the Customer Michael J. McEvoy Managing Director ath Power Consulting +1.617.243.9500 September 25th 2013