In today's world, banks face a highly competitive and saturated market - where product innovation and price is no longer a differentiator. Further, because of technological advancements and demographic shifts, customer expectations are steadily rising.
The ability to be empowered with information anytime and anywhere is a driving factor in the rising popularity of smart phones and tablets among consumers. Banks are increasingly responding to this 'mobile' opportunity. All top banks across geographies offer traditional mobile banking services like checking balances, viewing transaction history and performing simple transactions. What more is possible?
To answer this, let us see how a mobile device can address the four key dimensions for a financial institution - Convenience, Innovation, E-commerce and Disrupting new markets. These four dimensions open up various revenue and cost take out horizons that help banks ride the consumerization wave of mobile.
Let us take the first two aspects - Convenience and Innovation. One key aspect of convenience that mobile banking provides, and which some leaders in this space have looked at as a potential monetization avenue, is mobile Remote Deposit Capture (RDC). As a product offering, mobile RDC provides convenience and usefulness, and is used by consumers and businesses alike. For example, US Bank charges $0.50 for each deposited check and First Tennessee is bundling this as a service with its premium accounts. Additionally, in their drive to increase satisfaction and build loyalty amongst customers, many banks are launching mobile micro sites to increase mobile banking usage, deliver targeted marketing, and also cross sell products and services across lines of businesses.
In their bid to be innovative and truly differentiate, banks are also evaluating the use of tablets in the next generational branch initiatives. Today, banks rely on branch staff to engage customers. Leveraging a CRM platform or a tablet for sales transactions can lead to a more engaging interaction with the customer whilst also re-inventing the experience. For example, Barclays piloted some self- service transactions on a tablet in a flagship branch in London; also, two banks in Israel (Leumi and HaPoalim) launched limited pilots a few months ago where bankers with iPad tablets served customers waiting in line at the branch.
For more details on how banks can use mobile solutions to service e-commerce and new market needs, read the article, 'Innovation, Convenience, E-Commerce and Disruption' in our quarterly journal 'Winsights'.
With the evolution of mobile devices and explosion of wide variety of smart phones and tablets, banks are realizing the need for aligning mobile banking services with the changing consumer demographics. Using mobile solutions to target the four aspects of customer engagement will help improve the customer experience and increase loyalty, while also contributing to the bottom line.