Five Keys to Understanding Mobile Banking

It is clear that something big is happening in finance’s world. Rather, something small. Mobile banking has changed the relationship between the bank and the consumer, and now occurs on a screen approximately five inches wide: the smartphone.

According to data from the BBA, most banking interactions now take place on mobile, as 30 times more logins have been produced through the mobile screen (Internet or App) than from a computer. In addition, by the year 2020 we will have a very mobile world, according to www.marketingcatalizing.com.

All these data lead to the same conclusion: you have to think about how to offer a complete banking experience on a small screen. In addition, therefore, smart banking companies should consider how to take advantage of this mobile opportunity. It is a challenge, but it also has certain advantages:

The mobile multiplies the frequency and depth of the interactions (either in the app or on the bank’s website).

It enables organisations to learn more about their customers and offer personalised experiences.

It allows real communication at any time and place.

These five keys will help banks to remain profitable in mobile banking:

Understand the challenge
We must be aware that the rise of mobile has come with another trend: the facilities for customers to change accounts and banks. Especially with the generation called millennials, a younger generation between the ages of 18 and 34, and that 18 per cent of them changed their bank in the last 12 months.

Most of them refer to quality of the experience as one of the main reasons to change rather than commercial characteristics. Thus, banks are not protected from the lack of loyalty to the brand. Therefore, when creating a mobile banking app, it must be done from the point of view of the user. It is not so important to offer all the services defined by the bank. Campaigns should, as far as possible, leave behind the traditional marketing and bet on anticipating needs of the user.

Take the branch office to the mobile

At any bank branch there are a variety of posters, brochures and everything else, designed by marketing departments to show products to the customers. Products like credit cards, motor loans, mortgages and deposit accounts. But, if the mobile application is now the new branch, how effectively are these products promoted in the mobile format?

In most cases, advertising is not targeted and appears at the wrong time, making it ineffective and frustrating. However, mobile can do better than that. As with any other digital tool, we have access to huge amounts of user data related to both transactions and behavior. And it offers almost an unlimited flexibility when it comes to how and when use display content and advertising.

Thus, success in mobile banking will depend on taking advantage of these two opportunities and offering smart targeted marketing because of an effective work promoting the full range of marketing services within the application because here is where the banking client spends its time today.

360 User data
If we focus on our mobile marketing activity based solely on the data we collect from the mobile app activity, we will limit our effectiveness. The best mobile marketing is possible if you are informed by own activity in all channels and the environment that surrounds you at any time.

There are, of course, many more opportunities to collect data from multiple sources and use the mobile as the ultimate ‘personal delivery vehicle’. This means that it is vital that banks share mobile data, at desktop and branch, in real time. In addition, it is important to have all strategies marketing focused on knowing the customer 360 degrees.

Predict the future

Gathering data and integrating customer insight has immediate and obvious benefits. The more databases they collect on their customers, the more they can identify not only what those customers have done in the past, but also what they are most likely to do in the future.

In most cases, banks already have methods to identify profiles and identify customers who are predisposed to a particular financial product or service. For example, a customer who has looked at the details of a particular product several times is almost certain to buy it.

What mobile banking offers are even more data that can be very revealing and provides greater accuracy when you want to do effective marketing and business profitability campaigns.

Mark the difference

Sometimes we just have to get an imXproved user experience. A better experience that can include improving aspects such as alerting customers about potentially fraudulent transactions, balance updates or changes in terms of service. And is it that the methods that are currently used are ineffective (e-mail) or expensive (calls, SMS and mail).

These strategies are not exactly “native” for mobile, a platform in which consumers increasingly value instant messaging. With the application now in the hands of so many customers, it is interesting to consider issuing fraud alerts from the application as an alternative to a text message that may be more expensive and reported, for example, a suspicious payment or account withholding. Thus, the user can respond directly within the application and confirm that a purchase is valid or fraudulent. And, with all of that, you get a significantly improved experience that costs less money to banks and reduces consumer stress.

One thing is clear: the mobile format is a powerful technology. Great power carries a great responsibility, so exploit the mobile opportunity properly and enjoy the benefits of monetising mobile banking.