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Tagged: credit unions

Mobile is the Land of Opportunity for Banks

November 24, 2014

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.

emarketer_mobiletrends

Mobile share is only expected to grow in the coming years.

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.

Great Expectations: Report Finds Banking Customers Demand More of Social, Mobile Channels

October 22, 2014

Banks around the globe have seen a significant decrease in customers’ reports of positive experiences in the last year, according to the 2014 World Retail Banking Report from Capgemini.

While customers continue to take advantage of multiple traditional and modern channels to meet their banking needs, social media and mobile platforms are gaining ground as customers seek quick and easy ways to access and manage their accounts whenever and wherever they are.

Today’s consumers have grown accustomed to other digital-dominant vendors like Google, Amazon and Apple, which continually develop and offer innovative solutions to make the user experience more seamless and convenient. So to the customer’s mind, why should their banks be any different?

Why shouldn’t they be able to send their friends money through Facebook? Why should professional financial advice require an appointment and branch visit? Why should ATM interfaces still look like they did in the 90s? Why shouldn’t a teller be able to deposit a check and show customers how to use the bank’s mobile app?

This attitude is especially common among Generation Y – so-called digital natives with a low tolerance for outmoded, clunky, or inconvenient services and products.

The report found that of all the age groups, Gen Y is considerably less likely to have positive experiences with their banks, indicating that their expectations are higher.

This could be a tipping point for banks as they seek to balance the needs of this new digitally dependent segment with those of long-held customers who place less importance on mobile and social.

The report also examined how positive experiences have a striking influence on profitable customer behaviors like loyalty and referrals, so it won’t suffice to simply find some kind of neutral middle ground. Banks must strive to generate more positive experiences to keep satisfaction high across the board and improve retention.

And indeed, some institutions around the world have begun implementing or experimenting with social-media-powered banking, like Facebook payments or customer service via social channels, and smartphone apps that aren’t just a mobile version of a website.

For example, Moven sells itself as a tool to help its customers keep an up-to-the-minute budget with instant notifications for every transaction, and automatic categorization and data on those transactions – without fees.

But for most institutions, two significant barriers remain:

  1. Legacy technology systems, methods and policies are not equipped to support mobile and social platforms, and upgrading these systems is an enormous and expensive undertaking.
  2. While customers may see social and mobile banking as a no-brainer, it’s fair to say they may not realize that working with third-party systems and platforms opens up a can of worms around privacy and data security.

Look no further than the grand-scale hacking attack against JPMorgan Chase in early October 2014 for evidence that talented hackers are waiting in the wings to exploit intrepid institutions at every turn. Experimental endeavors in social and mobile media are low-hanging fruit for these cyber criminals, so it’s no surprise banks haven’t charged ahead into the digital domain as vigorously as customers might prefer.

While this report offers an intriguing, and perhaps troubling, global picture of retail banking, enterprises should still focus on the voice of their own customers, as measured by current and thorough data, to drive decisions around customer experience management.

As you look ahead to 2015 this quarter, consider tapping CSP’s resources and expertise to guide your strategy. We are passionate about improving the customer experience by turning data into plans for action to drive results. Contact us to learn more.

As banking paradigms shift, voice of the customer insights are critical

June 23, 2014

A significant shift is underway in how banks across the country are relating to and responding to their customers’ needs and expectations.

Spurred on by emerging technologies that put more control in customers’ hands – most notably, mobile banking – and a decrease in branch foot traffic in the last decade, some banks have begun experimenting with new customer service models to reshape the customer experience.

The June edition of American Banker magazine highlighted some of the initiatives being tested in select branches and markets, such as PNC’s “universal bankers,” employees who can handle tasks from a simple cash withdrawal to account and small business services. Read the full centerpiece article here.

The Battle for Branch Relevancy
It’s a trend that’s already disrupting other industries and has bled over to banking: Automated and self-service options have made today’s customer less reliant on branches and tellers, prompting speculation about the future of brick-and-mortar locations.

Yet, as the article points out, people are not yet ready to abandon personal interaction with their institutions, preferring to at least have the option of a human face or voice, even if their first stop is an app or ATM.

The shared goal behind these new models of customer service is seamlessness.

Branches may become extensions of a bank’s digital presence, and vice versa. Customers may still prefer to handle certain interactions in person, but they expect the person they’re dealing with to be more knowledgeable and flexible about transactions, products and services, and less roped off from one another (literally).

Temperature-Testing
It’s still early to tell whether and how quickly this integrated, flexible approach to banking service and sales will catch on – that growth will largely depend on how the concept is rolled out to market and how much change customers are willing to navigate at once.

To stay nimble, banks will need to make sure the voice of the customer does not get lost among the shuffle of new ideas and experiments. CSP will be watching, and more importantly, listening with great interest as customers encounter and evaluate the next generation of experiences crafted to exceed their expectations.