GlobalData Plc

Self-serve and security key to US mobile banking

Mobile banking usage in the US remains at a nascent stage. Here we discuss the services that consumers want from their banks and what providers can do to increase mobile banking uptake.

According to our 2015 Retail Banking Insight Survey, preferential rates, additional security measures, and self-service tools are the most important services consumers are seeking from their providers in the US. The risk of security breaches and fraud is significant in the US and is clearly holding back many would-be mobile banking users. Additionally, self-service PFM tools are important for consumers’ everyday mobile banking interactions. Providers should therefore cater to these customer needs in order to further increase mobile banking penetration.

Banks can only seize the opportunities posed by mobile banking if their mobile offerings are compelling and genuinely provide a service that consumers value – and hence use – on a regular basis. US banks can learn from developments abroad, where applications with much greater functionality are already prevalent. For example CaixaBank launched imaginBank, a mobile-based proposition enabling consumers to self-serve through their mobile. In our view, for mobile banking to hit the mainstream banks must act to boost consumer confidence about identity protection.

There are big incentives for providers to move customers over to the mobile channel. Improved engagement with consumers through increased interaction will aid customer retention. Mobile, along with online, will also help to free up the branch and telephone channels for more value-added services. Meanwhile, mobile has become another differentiator between offerings and may help providers to attract new customers. US banks need to increase consumer use of mobile in order to realize these benefits.

By Resham Karira, Retail Banking Analyst

To get in touch please contact Have something to say on this topic? Join our LinkedIn group: Retail Banking Insights.