Mobile Banking Investments Drive Customer Satisfaction Improvement
The mobile banking investments of the big banks — Bank of America, Chase, Wells Fargo, Citibank — are creating a huge uptick in their customer satisfaction scores, reports Jim Marous of the Financial Brand. “The large banks’ satisfaction scores increased by more than 50 points between 2012 and 2016, and are now slightly higher than the scores for both regional and mid-sized banks. Why? Increased investment in digital delivery by the largest banks has to be one important reason," Ron Shevlin, director of research at Cornerstone Advisors, tells Marous.
J.D. Power research shows "there is an immediate lift in overall satisfaction when customers use mobile banking (+27 points on a 1,000-point scale), and this impact increases even more when banks provide their mobile banking customers with a highly satisfying experience (+82). J.D. Power notes that, “The outlook for Big Banks remains positive, driven by their ability to invest in customer-centric innovations (e.g., digital channels, analytics, and branch transformation), as well as their success in growing customer segments.”
Mobile not only drives customer satisfaction but reduces branch visits, providing financial institutions with significant savings. J.D. Power found branch visits can be reduced by 33% if a customer is encouraged to use mobile banking and use their phone for check deposit.
Big Banks Set Sights On Instant Payment Market
Michael Corkery and Nathaniel Popper of the New York Times report that big banks are aggressively entering the instant payments market to reverse the gains made by Paypal's Venmo and Square Cash. Wells Fargo has joined JPMorgan Chase, Bank of America and US Bank in allowing customers to send money within seconds to another person's bank account. "The banks worry that if they do not respond with their own instant payment offerings, they will be relegated to performing less-profitable back-office functions for hip new payment companies, which make their money primarily by charging small fees to customers who pay by credit card rather than directly from a bank account," write Corkery and Popper. The P2P market is seen as valuable because it allows finanial companies to start a conversation with the consumer around more profitable products like loans.