eMarketer (@eMarketer) recently hosted an informative webinar on the outlook for the financial services industry in 2015 and beyond, based on data collected this year.
The projections point strongly in the direction of mobile banking and payment options gaining broader favor and driving demand. While the Millennial generation has motivated much of the digital advances of the last decade, adoption is projected to increase among the 55-64 and 65+ demographics in the coming years as they become more familiar and comfortable with the new wave of mobile technology.
Trends in the mobile technology industry have a distinct ripple effect on financial institutions and consumer expectations. At the beginning of the Millennium it seemed like every new device was smaller than the last; the public’s imagination was captured by the mindblowing amount of information, space and capabilities that we could now fit on something smaller than our thumbs.
But the early part of this decade has seen a demonstrated shift to larger screen sizes and lighter devices. The iPhone 6, Samsung Galaxy and Galaxy Note, Kindle series and the new category of “phablet” would indicate that the tech industry and consumers might be moving towards a happy medium of size and functionality.
The good news for banks getting into the app game is that a larger screen poses fewer limits on what you can do with that app. Cross-device compatibility is still a thorn in your side in such a fragmented marketplace, but if the eMarketer projections are any indication, sharpening the mobile experience should be a priority and worth the investment.
What’s important to keep in mind is that mobile may be the land of opportunity right now, but we’re still in an omnichannel world, and one channel can’t be emphasized at the expense of others without hurting the customer experience.
Some other interesting takeaways from the eMarketer webinar:
- Security and privacy concerns, including one’s device getting lost or stolen, remain primary inhibitors to greater mobile banking usage.
- Between now and 2018, consumers will start making larger purchases on mobile devices (compared to lower-priced purchases like lunch or taxi fare that are gaining traction right now).
- Proximity payments and near field communication (NFC) are drawing a lot of attention from innovators like Apple and Google, as well as major national retailers.
- Mobile ad spending will outpace desktop spending in 2016. Financial service advertisers are dedicating more budget to video, which has proved to be an effective engagement tool on digital platforms.
And we especially liked this one, from Vinoo Vijay, CMO at TD Bank:
Our most effective marketing channel is the actual moment when the customer experiences us in our store or on our website. We put a lot of emphasis into the experience that the customer has because, at the end of the day, that experience is far more powerful than anything we can say.
Thanks to Bryan Yeager (@bryanyeager) at eMarketer for leading the webinar. We look forward to helping our financial services clients navigate the evolving customer experience of the next several years.