Lesson From Mobile Banking — Making Things Easy Makes Money

Bank of America CEO Brian Moynihan just announced that more than 10% of all consumer deposits are done through mobile devices. That's in Q1 2014, and it's up from 6% in Q1 2013. (What you see in this picture is my local Bank of America branch, which I never visit any more.)

I love this from the Wall Street Journal's MoneyBeat blog:

Banks that don’t offer a full suite of mobile banking services may run the risk of alienating customers. All told, about 60% of smartphone or tablet users who switched banks in the fourth quarter said mobile banking was an important factor in the decision, up from 7% in the second quarter of 2010, according to data from New York-based consulting firm AlixPartners.

A mobile transaction costs 10 cents. An ATM transaction costs $1.25.

Here's what this means for you: Find a mobile moment where you can make your customer's life easier and you'll make money three ways. First, you'll make the customer happier with a better experience. Second, you'll keep him from switching to a competitor. And third, if you engineer it right, your own processes will be simpler and you'll save money, too. That's mobile mind shift thinking.

It's not just banking. Where are the mobile moments like this in your business? 

Comments

mobile banking

The benefits of this convenience are undeniable, but there are a number of disadvantages that mobile banking users should be aware of. Compatibility issues and security problems may cause you to think twice about using it. Some financial institutions charge an extra fee for mobile banking service, and you may need to pay a fee for software. These extra charges quickly add up, especially if you access mobile banking often.

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