It’s March, so that means tournament time – the Zags, Cavs, Blue Devils, KCats, Heels and, of course, our dark horse, FL State. Along with college basketball, it also means we update our strategy on bank delivery transformation. This year, we focus on taking a look at all available digital banking platforms to see which fits what type of bank. We will do this in an NCAA college basketball format (‘Tis the season) with the goal of choosing the best platform given a set of predefined criteria.
Tag: Mobile Banking
Yesterday, we looked at overwhelming data that shows, when given a choice, bank customers will use a variety of banking channels to complete a transaction such as account opening. In fact, 40% of customers, as of the end of 2018, used multiple channels such as phone, online, branch, call centers, and mail to open an account.
Last week’s article on branch transformation generated more questions than usual with many bankers asking what an “optimized” branch network looks like in the omnichannel model. While we are not confident that most community banks can achieve that model and would be better off focusing on a mobile-first architecture, most banks are in the process of trying. In this article, we review what a new branch delivery portfolio might look like, looking at both the economics and engagement of each location tactic.
It has been six months since Citibank released their upgraded mobile app. During that time, their app has garnered a following and we have been able to collect data on the user experience. We now rank Citi as the third best banking app behind Wells Fargo and USAA and it is moving up. Citi has closed the gap not only with all banks but with most fintech firms as well. This new app is the foundation of their yet to be released digital bank which is why everyone is paying such close attention.
Two non-banks released offerings last week that bankers should know about as both are poised to take market share from community banks. Venmo and Acorn both released debit cards with cutting-edge features that will now have banks scrambling to keep up. Both of these Fintech firms have partnered with community banks and applied both creative marketing and product creation to allow digital customers nationwide to leap from the digital world to physical stores. In this article, we explore the ins and outs of the products in hopes of helping banks better compete.
Years ago we discovered that most bank customers don’t specifically need a physical branch they just want the comfort of knowing they CAN go to a branch. The difference is subtle but important for banks looking to evolve their channel delivery. Over the past eight months, we have learned from focus groups and experiments that what customers want above all else, is a private banker.
When the FCC adopted Net Neutrality back in 2015, banks were concerned that wireless carriers where going to turn to payments to make up for the lost revenue that the wireless carriers and cable providers were missing from delivering a premium-priced internet package. That not only didn’t happen, but several players with payment application, such as AT&T’s Softcard partnership never panned out. Now, with the repeal of Net Neutrality, there are worries that the carriers can now direct traffic to their payment channels and better compete with banks.
From time to time, we have a debate about how many of our customers have broadband, tablets, smartphones and other digital devices. Below is the most recent data from Nielsen that shows our customer’s households are very digitally enabled. If you are like us, this data can come in helpful prior to your strategic plan updates when you decide the level of resources to devote to digital banking and advertising channels.
Our Main Takeaways from This Data
As growth slows for mobile adoption, banks will need to find ways to bring on the remaining customer base. For community banks, education of staff and customers is still the best way. However, for strategic planning purposes, banks will need to:
Find Customers That Are Likely To Adopt Mobile Banking – They are usually more profitable.
Last week we went to test out a competitor bank’s mobile account opening process when we were thwarted by their marketing. The marketing email took us to a mobile account opening app that we then had to click three taps down to get to the actual account registration part of the app. Since the marketing already explained the details, there was no need to go through the first several screens of the mobile app.