Leveraging Digital and Mobile Banking Experiences as a Differentiator

An overwhelming 91% of consumers say a good mobile experience with their financial providers is important, according to MX research.

Digital and mobile experiences as channels to engage with customers are nothing new. But they have too often been viewed as just another channel. Just another spot where businesses need to have a presence. Just another item on a long list of priorities. Today, mobile and banking strategies must move to the top of your priority list. 

Last week, many of the brightest leaders across the payments, fintech, and financial services spaces gathered together in Las Vegas at Money20/20 USA. As part of the event, MX hosted a breakfast and panel discussion talking about some of the ways mobile and digital experiences are directly impacting growth — and how digital can help businesses differentiate.

The panel included James Dotter, Chief Business Officer at MX, Andy Hernandez, Founder of ARH Agency, Jason Lazzerini, Executive Vice President and Chief Digital Officer at Central Pacific Bank, Howie Wu, Executive Vice President and Head of Product at Seattle Bank, and Heather Warner, Head of Client Success at MX. Here are the highlights from the conversation:

Solving the Retention Problem

When asked about how financial institutions are shifting their strategies toward digital, Andy said, “As an industry, we have a customer retention problem. You've got several companies who are making it easy to switch. We used to rely on the fact that it was very hard to switch.”

For consumers, it’s no longer about which bank is closest to their home. With the ease and accessibility that digital and mobile banking solutions provide, the number of financial providers that consumers have access to without stepping foot outside their door is astounding.

And, the data shows that 58% of consumers would switch financial providers if the mobile banking experience was bad. Financial providers need to provide their customers with the solutions and resources they need through digital channels.

The Differentiation Situation

With thousands of banks, credit unions, and fintechs across the U.S., financial service providers have no choice but to look for ways to differentiate. While they may be limited on differentiating on rates, they have many opportunities to stand out from the competition in the ways they offer products and services. Here are some of the recommendations from the panelists.

The People and the Passion

Andy shared how differentiation goes beyond technology: “We all live and work around technology. But to differentiate, you’ve got to surround yourself with good people who are truly passionate about doing right by the customers.” 

Putting consumers at the center of financial relationships is key to standing out — and leading with personalized financial experiences.

Begin with the Basics

Jason shared some ways that Central Pacific Bank has been able to stand out from the competition. 

“We try to make the most basic stuff the easiest stuff. We add surprising and additional value. We want them to love their financial tools.” 

After rolling out its new mobile app, the bank lives and breathes the simplicity Jason called out. Consumers can now find financial wellness, direct deposit switches, new account openings, and loan originations easy and accessible.

Get Clarity with Your Customers

While competing with large providers, Howie noted how his team at Seattle Bank stands out by saying, “As smaller institutions, it’s about knowing your customers, finding those moments of delight, and solving problems using digital.”

At a previous organization, Howie’s team helped recognize a need unique to their high net worth customer base — easily moving large amounts of money. This was not a common capability among their competitors, so the institution built tech that would benefit and retain consumers based on these unique needs.

Dig into the Data

James wrapped up the suggestions with an all-encompassing theme: “Don't be afraid of the data. Don't be afraid of the statistics. Dig in, get familiar with it, and use those to guide you on how you're going to create the right experiences for your customers.”

Data is one of the most powerful tools that financial providers can use to give consumers exactly what they want. And, 59% of consumers expect their financial providers to leverage the data financial providers have about them to personalize their experience. Leveraging consumer-permissioned data puts consumers at the center of their own financial experiences.

Consumers already share who they are, their goals, and how they work towards those goals with their financial providers every single day. With every purchase. With every dollar saved. With every account connected. Financial providers can give consumers the peace of mind that they know them and are ready to partner with them on their financial wellness journey.