MOBILE
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TIPS TO MAXIMIZE MOBILE IN 2016 By: Shirra Frost
Director Digital Banking Marketing Fiserv
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ith the start of the new year, financial institutions may be making their own resolutions to better engage current customers and attract new ones. As mobile technology has become an integral part of people’s lives, it has become a primary channel for engagement. Dedicating resources to the mobile channel will allow financial institutions to provide a better customer experience for their existing customers as well as attract new customers who look to the mobile channel to provide all their banking services. DRIVE ADOPTION OF THE MOBILE CHANNEL The mobile channel is now mainstream, with some financial institutions reporting more consumer interactions via the mobile channel than any other. Fiserv analysis shows
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Payment Quarterly | Q1 2016
that a mobile adoption rate of 40 percent or more of the online banking user base is a realistic goal for most financial institutions, yet this level of adoption doesn’t happen by itself. By better understanding how mobile banking product attributes impact adoption, financial institutions can develop actionable strategies to drive adoption and increase the return on investment. The ability to add and retain mobile bankers can help drive a financial institution’s growth and profitability. Research has shown that those that bank via mobile are among a financial institution’s most valuable consumers. They use a platform with lower service costs and have a greater propensity to sign up for additional services. The right mobile banking features are critical for achieving the highest levels of channel adoption. Consumers who perceive that mobile banking aligns with their lifestyle are more likely to use the service. Investing in nextgeneration mobile banking products is vital to this initiative. For example, financial institutions that offer mobile deposit see 60 percent more logins and transactions per month per user than financial institutions without the feature. A tailored tablet banking experience can also boost enrollment and activity.
P2P payment and instant balance features also speak to consumer lifestyle preferences. P2P payments are convenient for paying rent, splitting bills or exchanging money among family and friends. Instant balance makes the most common mobile banking activity, checking balances, as easy as swiping a smartphone screen. EMBRACE MOBILE PAYMENTS AS A MEANS OF CUSTOMER RETENTION Financial institutions that push forward with their mobile payment strategies today can establish themselves as the preferred provider of mobile payments and reap the rewards of higher customer retention and compelling returns on investment. In doing so, financial institutions will be better able to compete with the evergrowing number of non-traditional players–and will better position their organizations to win mobile proximity payments as those services become standardized and more commercially viable in the near future. In order to capitalize on consumer preference to execute mobile payments through financial institutions, it’s important for banks and credit unions to deploy, brand and promote current offerings. For example, financial institutions should work to be top of wallet by ensuring that their cards meet the requirements to be used through third-party mobile wallets and making it convenient for consumers to add their cards. When a financial institution establishes their card as the consumers’ card of choice for mobile wallets and apps, they keep the financial institution brand visible to customers and retain a revenue stream from the interchange. Additionally, retaining customers by rewarding them with loyalty programs not only strengthens relationships but also helps ensure the financial institution remains part of the payment. Mobile-driven loyalty programs drive consumer adoption of mobile payments – and influence future choices in mobile payment apps. Capabilities such as mobile alert services, card management and payment-related functionality such as mobile photo bill pay create more value around mobile payments and position financial institutions to