Mobile banking usage in the US is still at a nascent stage, with less than half of consumers using the channel. However, a compelling mobile banking application could give banks a market advantage if they can assuage consumer concerns.
According to a Federal Reserve Board survey, mobile banking penetration is relatively low in the US with less than half of consumers using the channel. Based on our 2015 Retail Banking Insight Survey, security, user friendliness, and limited functionality concerns still represent the most important barriers to adoption in the US. Providers need to address these issues to further increase mobile banking penetration.
Firstly, banks must answer the security question. Providers should market their existing security protocols or even develop biometric-based access to explicitly demonstrate to customers that their brand takes security seriously. Biometrics also have the added benefit of partly solving the conundrum of security versus convenience. A well-executed approach to security should boost the customer experience.
To address usability concerns, providers should involve user experience experts when ideating the range of functionality, developing the user journeys, and designing the layout of the app itself. A well-designed and intuitive mobile banking solution should save consumers time and effort.
Functionality should be developed to include features such as personal financial management, push notifications, and image capture. This will help to improve the functionality of the channel, ensuring that consumers feel more engaged with their providers.
Only once these concerns are addressed and consumers realize the additional benefits of mobile banking will demand and uptake improve. The mobile channel can bring significant advantages to banks in terms of engagement and service differentiation, and the US market will prove no different.
Look out for our upcoming commentary on the mobile services that US banks are currently lacking.
By Resham Karira, Retail Banking Analyst