Mobile banking is becoming the new norm among consumers. According to a recent survey, “64% of millennials and 59% of Gen Xers said they have at least one full-service banking app on their phone.”1 But simply having a mobile app is no longer enough for financial institutions that want to differentiate from the competition. There are three main drivers of mobile adoption in banking: unsurpassed convenience, an exceptional customer experience, and unparalleled security measures. When these three factors align, the barrier of banking on mobile is greatly reduced.
Convenience is a prevalent motivator of human behavior. In general, people want to do the activity that requires the least amount of effort. And that’s exactly where mobile banking comes in. Mobile banking allows customers to bank on their terms—from anywhere and at any time. In fact, 40% of US consumers haven’t been inside a branch in six months2. This growing behavioral pattern has partly contributed to the 1786 bank branch closures in the last 12 months3.
Next to convenience, security is another big hurdle to overcoming user adoption on mobile. According to a study from IBM, 70% of US mobile app users consider security to be a top priority.4 And with major data breaches from Target and Equifax to Verizon, it’s no surprise that consumers hesitate to share their banking credentials on mobile. Fortunately, one trend that’s gaining traction and alleviating security woes is biometrics authentication.
Last, but certainly not least, winning the banking mobile competition comes down to providing a great customer experience. Consumer demands for ease of use is high, and meeting their needs is no longer a “nice-to-have” option—it’s expected. In fact, 44% [of US users] consider ease of use to be a significant factor when deciding whether to download apps.5 If a customer has a bad app experience, they’re much more likely to leave, because they have endless options and little to no friction to switch.
- FDIC summary of deposits
- IBM Security: Future of Identity Study