Road to Success for Mobile Financial Services Apps
By: Mobiquity Inc.
Tags: Mobile Banking, Financial Services, Contactless Payments, Mobile App Development, Online Banking

While your bank may have a segment of stalwart customers who prefer in-person banking only, there’s a good chance that has changed in recent weeks. Industry analysts have reported a steep increase in digital banking interest, with 63% of consumers indicating an increased likelihood to try a digital app. While many consumers are being forced to adopt technology to stay safe, when they experience the ease and convenience that technologies like online banking add to their lives, many will continue this new habit.

Even before the coronavirus became a household name, financial institutions were catching on to how important mobile is for innovation and improving the bottom line. In 2016, research revealed that The Federal Reserve Bank reported 73% of people feel more in control with mobile banking. In addition, younger generations are significantly more reliant on mobile banking, and demand for optimized mobile banking experiences appears to only grow with each generation. In a more recent survey by the Boston Federal Reserve Bank, a reported 91% of banks and credit unions now offer mobile banking services. Similarly, in another article, mobile banking usage statistics in the UK show that 74% of the country’s residents use smartphone devices and mobile banking apps to manage their finances. Those in this group have been set up for better success during this time of social distancing. Those who aren’t in this group need to quickly make plans to accommodate this huge shift in consumer behavior.

The majority of banks who already have mobile banking capabilities may be wondering: how can they move beyond simply enabling contactless banking to deliver a mobile experience that drives customer delight and sets them apart from their competition. Mobiquity has set out to answer that question with its custom friction reports that analyze mobile apps and share information, such as where there is friction and how leaders looking to address these frictions can make enhancements to their app. (Want to get a friction report for your company? Request one here.)

Creating a winning mobile experience is where many banks and credit unions hit frustrating speedbumps. Those obstacles often include internal technical groups that already have too much to handle and end up slowing time to market. Then there are privacy and security concerns that can become innovation-stifling roadblocks as institutions explore new ways of engaging customers. And, finally, many banks and credit unions lack a deep understanding of the “who,” “what,” and “why” of their target audiences.

In our experience, that third point is extremely important to any effective mobile strategy. And it’s not just about deciphering the needs and preferences of current account holders. It’s also understanding-and engaging-these stakeholders:

Executive leaders who want to increase brand recognition and long-term profitability

Intermediaries who are trying to leverage technology to better serve their current and future customers

Account holders who have basic, but varying, frustrations interacting with their accounts

Future account holders who expect innovation that reflects an institution’s competitive advantage

Employees who want to be more efficient while following corporate- and industry- compliance standards

When crafting or updating a mobile strategy, start by assembling a diverse team from within the organization. Be sure to include IT and line-of-business representatives. And consider forming an omnichannel strategy to govern, enforce, and refine the standards you establish in your enterprise mobile strategy (and any other future digital solutions). Whether you go it alone or engage a third party to help create a mobile strategy, address three key questions:

What new technologies are your internal and external stakeholders already using?

are your internal and external stakeholders already using? What stakeholder habits can be transformed into a competitive advantage for your bank or credit union?

can be transformed into a competitive advantage for your bank or credit union? What can you learn from others — within or outside the financial services industry — who are using mobile creatively?

Even if you’ve launched a mobile presence, make sure your strategy stays active. After all, stakeholder preferences-and technical advances-are fast-moving targets you can’t afford to miss.

As ideas are developed, don’t lose them. Set up a portfolio of those with promise that cross different lines of the business. Establish a small group of “intrapeneurs,” people who can make decisions so that innovations are evaluated and prioritized. Ultimately, those concepts will be tested through innovation labs which can leverage proof of concepts.

Today, FinTech organizations are tasked with the enormous challenge of innovation in an industry fraught with privacy and security concerns, legendary bureaucracy and an abundance of continuously evolving technology. Taking the time to research and innovate in a way that complements your existing business while guiding it into the future and an increasing need for contactless ways of doing business is crucial.

Ready to create a roadmap for your mobile app success? Let’s talk.