LOMBARD, Ill.– A new report has been released that analyzes consumers’ mobile banking usage and its impact on other banking channels, and makes recommendations on how financial institutions can optimize their investment in the technology.
Released by Raddon, a Fiserv company, the Raddon Research Insights: Grappling with Mobile Banking Engagement Issues report found that mobile banking usage has grown from 7% of all consumers in 2010 to 41% of all consumers today.
“As the ubiquity of the service grows, differences in how consumers use the service become more important to a financial institution’s overall strategy,” Raddon noted. “The report outlines how financial institutions can separate these consumers into segments based on their volume of mobile banking usage in order to determine where to allocate funds, how to better target their marketing efforts and whether to invest in additional technology solutions.”
One-third (33%) of all mobile bankers report they use branch facilities less because they use a mobile banking service. However, nearly one-quarter (23%) of all mobile bankers assert they use ATMs more due to their mobile banking use, and 38% of all mobile bankers indicate they use an online banking service more, according to the report.
“When a consumer adopts mobile banking the assumption has been that they will be less costly to serve because they visit the branch less, but that is an oversimplified equation,” said Bill Handel, vice president of research, Raddon. “Mobile banking drives increased usage of services like online banking and ATMs. This is positive from an engagement perspective, yet it leaves financial institutions grappling with how to best serve this ‘want it all’ consumer. The key is for financial institutions to hone in on the value of the overall customer relationship to make sure they are delivering the appropriate levels of service and not over- or under-investing in technology.”
According to Raddon, financial institutions can examine their mobile banking users’ service activity in order to provide the technology that corresponds to the needs of the end user, adjusting their investment priorities based on their current customer compositions as well as the consumers they wish to serve in the future.
The research in the Raddon Research Insights: Grappling with Mobile Banking Engagement Issues study was gathered from 2,343 online surveys conducted in 2016.
An Executive Summary of the research is available at www.raddon.com/mobilestudy and the full report can be purchased at raddon.com. Raddon will host a webinar on the study on August 31, 2017 for purchasers of the report.