In your strategic planning, one decision that needs to come up as you grow towards $1B in total assets is if your bank will have one mobile banking app or multiple apps. If your bank has not proactively decided, then chances are you are either not looking far enough in the future or not being active enough in guiding your bank’s technology architecture.
Tag: Mobile Banking
While online account opening and digital lending are great, there is one function that is the most in demand by bank customers, yet most banks don’t think to provide any digital functionality around it. It is the one function that drives up the most cost for a bank and is the most significant reason why bank customers still say they want a branch. Solve this problem, and you start to become a true digital bank. In this article, we look at the data around the problem and how to solve for it.
While most banks think they need a new digital account opening process, the reality is that most banks need a new digital onboarding process. Despite all of our technological progress, it’s the analog process where the most massive failures are. To this point, we just mystery shopped two renowned banks, Umpqua and Citibank, and in both cases, we were met with adjunct failure. Here at CenterState, we are relooking at our digital onboarding process in hopes of getting it right.
In our third and final part of mobile banking app usability testing, we looked at the top 25 major banks, and reduced their mobile banking app to a set of design elements and then turned 60+ designers loose to get creative and come up with variations that fit our brand. We then took various aspects of each design and tested each before 415 customers and potential customers. We looked at usability and asked them to rate each feature. In each case, we chose a base case and then compared variations for usage and desirability by each customer.
After getting frustrated with not being able to find usability data for mobile banking, we gathered 415 customers and potential customers to ask them what they thought of a variety of features. The results surprised us. We presented some of our findings earlier this week, and now we present Part Two of three covering four more specific topics. In each case, we chose a base case and then compared variations for usage and desirability by each customer. The numbers below are the percentage points difference, positive or negative from the base case (Version A).
If you are looking to improve your banking app, you will find that everyone has opinions, but few people have data. Even the specific app design shops or user experience “experts” largely have design experience but have never applied any rigor to figuring out what banking customers want. Given this issue, we decided to take it upon ourselves to convene 415 customers and potential customers in order to get their opinion and usage data on what features and design they like the best.
Recently, there was a comedy sketch on Saturday Night Live (SNL) that hit a little too close to home. The send-up showed a couple splitting a meal using Venmo. To contrast the efficiency, the scene then cut to a turn of the century piece detailing how “Cheques” still contain drama – “There is nothing like furiously scribbling on a small piece of paper, tearing out and then flicking your wrist [handing the check over].”
There is an idea that has been going around for the past couple years that community banks should start a digital-only bank under a separate brand similar to what Goldman Sachs has done with Marcus or Chase has done with Finn. In fact, we are at the Financial Brands Forum this week and the topic is still garnering a deep buzz. Since Marcus, several community banks have done this as well and many others are thinking about following suit. In this article, we look into this strategy to see if the idea holds merit and break down when to consider the strategy.
After our first round of head-to-head competition, we were sorry to see some digital banking solution providers go. Similar to the NCAA Men’s and Women’s teams (We are still heartbroken over UCF), some of these solution providers were good, it just wasn’t their time. Many of the banking platforms didn’t make it as they were not true cloud-based, didn’t have our desired architecture or had little in the way to support business banking.
Not only are the NCAA Basketball brackets set, but we have finalized our digital banking competition as well. While our criteria stood the test for a couple of hundred banks that commented on it or we had interviews with, we have had to expand our brackets from 18 to 24 contenders as it seems that we left several off.
Our (Semi) Final Criteria