Mobile banking usage grew 34% in less than a decade according to research from Lombard, Ill.-based Raddon, a Fiserv Company. The study also recommends how to optimize the technology.
The report, “Raddon Research Insights: Grappling with Mobile Banking Engagement Issues,” found that mobile banking usage grew from 7% of all consumers in 2010 to 41% of all consumers today. As the ubiquity of the service grows, differences in how consumers use the service become more important to a financial institution’s overall strategy.
As mobile banking becomes more popular, the volume of consumer mobile banking usage is even more vital to a credit union’s overall strategy as it helps to adjust their technology investment priorities to better correspond to the needs of the end user; and ensures they are delivering appropriate levels of service in the branch, at the ATM and online.
The report outlines how financial institutions can separate consumers into segments based on their volume of mobile-banking usage to determine where to allocate funds, how to better target their marketing efforts and whether to invest in additional technology solutions.
Key Findings:
- A third of mobile bankers report they use branch facilities less because they use a mobile banking service.
- Nearly one-quarter (23%) of all mobile bankers assert they use ATMs more due to their mobile banking use.
- Thirty-eight percent of all mobile bankers indicate they use an online banking service more.
“When a consumer adopts mobile banking, the assumption has been that they will be less costly to serve because they visit the branch less, but that is an oversimplified equation,” Bill Handel, vice president of research, Raddon, said. “Mobile banking drives increased usage of services like online banking and ATMs. This is positive from an engagement perspective, yet it leaves financial institutions grappling with how to best serve this ‘want it all’ consumer. The key is for financial institutions to hone in on the value of the overall customer relationship to make sure they are delivering the appropriate levels of service and not over or under-investing in technology.”
Raddon gathered the data from 2,343 online surveys conducted in 2016.
