Technology is radically changing the way bank customers interact with their providers, and mobile touchpoints are at the forefront of this change. In the past five years, mobile banking adoption in the US has more than quadrupled, hitting 17% by the end of 2011. This represents a compound annual growth rate (CAGR) of more than 33%.
As such, eBusiness professionals and mobile strategists at banks are in a white-knuckle contest to out-do each other in the mobile space. To evaluate and gauge banks’ mobile offerings, we applied Forrester’s Mobile Banking Functionality Benchmark to the four largest retail banks in the US.
What we found:
Big US banks offer solid, not-yet-splendid, mobile services. We employ 63 individual criteria in our Mobile Banking Functionality Benchmark methodology. The combination of weightings and scores for the criteria generates an overall score based on a 100-point scale. In our inaugural ranking, the four largest US banks posted an average score of 63 out of 100 – above our minimum standards but far from perfect.
To gauge how far organizations have come with their mobile initiatives, Forrester conducted the Q4 2011 Global Mobile Maturity Online Survey among executives in charge of their companies’ mobile strategies.
Since 2010, fewer companies report not having a mobile strategy in place. Between Q3 2010 and Q4 2011, the percentage of companies we interviewed that have no mobile strategy or are at the early stage of defining one has significantly decreased, from 57% to 31%. C-level executives are increasingly in the driver’s seat, and mobile is moving away from a test-and-learn approach to fueling companies’ corporate goals. Mobile is primarily viewed as a way to improve customer engagement and satisfaction.
However, the majority of companies face organizational issues and struggle to allocate the right resources for mobile and to measure the success of their mobile consumer initiatives. The main obstacles they face are these:
■ Lack of measurable business goals clouds early success.
■ Limited investment, resources, and expertise slow progress.
■ Cross-functional and cross-geographical complexity cause inefficiency.
There are plenty of new disruptive platforms emerging from tablets, from game consoles to connected TVs, but mobile will be the primary platform for global product innovation. Only mobile phones can offer such a global reach.
To prepare for the accelerating pace of mobile disruption, product strategists should help other internal stakeholders rethink the life cycles of their mobile applications and services and drive innovation via smarter apps, richer data, and converging technologies.