Take a minute to list out all of the things you can use your smartphone for on a daily basis. You can call a car, you can order food, you can email others for both work and “play,” connect with friends and family on social media, and…you can even find love via a mobile app if you’re so inclined. This astonishing level of mobile capabilities should come as no surprise, given that 95 percent of Americans now own a cellphone of some kind.
As consumer lifestyles become increasingly app driven, so does the way individuals manage banking and personal finances. For financial institutions that haven’t “gone mobile” quite yet, below are three trends that indicate it’s no longer a “nice to have,” but a must for today’s digitally inclined account holder.
Individuals Utilize Mobile Banking for a Variety of Functions
Nearly half of the respondents in this Market Research survey reported using mobile banking in the three months prior, and the ways these respondents use mobile banking is surprising. The largest share (67 percent) primarily use mobile banking to check balances, while over half (51 percent) use mobile apps for bill pay. Mobile app users also use the technology to deposit checks, receive text alerts on their balances, and pay friends, family, and roommates quickly and easily with P2P payments.
Moving the Needle on Mobile Banking
Although mobile banking is becoming more commonplace, users are still hesitant to deposit physical checks using their smartphone. A recent Futurion report found that six out of ten U.S. online customers have yet to deposit a single check via their mobile device, and only 20 percent of all online bank customers are regular users of mobile deposit. The reason for lagging mobile deposit usage could be that users don’t quite trust mobile banking – yet; only 6 percent of mobile banking users trust mobile banking for legitimate financial transactions (beyond checking balances.)
According to findings published by AlixPartners, of consumers who are “somewhat” or “more likely” to switch banks to get access to mobile features, 43 percent chose mobile deposit as the top feature, nearly twice the rankings of other mobile features.
Ultimately – Users Desire Bank Mobile Apps that Help Them Master their Money
New research shows that in addition to stronger security and better mobile payment capabilities, account holders also desire more prescriptive advice from their financial institution’s mobile app. New features like automatic savings, spend analysis, and customized advice are what mobile banking users of the not-so-distant future crave.
Account holders not only want a more convenient way to bank through their mobile device, they also want a faster way to connect with the institution and more answers on how to create a brighter financial future. “Going mobile” is a great way to provide both.
Many of Harland Clarke’s financial institution clients have seen increased mobile deposit usage by incentivizing users to try out these new technologies. If your institution is unsure of where to start, consider Harland Clarke’s turnkey and custom direct mail programs for financial institutions looking to grow mobile deposits. As part of these programs, financial institutions send to targeted account holders a personalized, low-value check to deposit using their mobile device. Account holders who want to try out mobile deposit will be encouraged to do so because of the extra incentive and they’ll be able to see how safe, secure, and convenient it is. Once they try it, they’re sure to continue using it.
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