You can bank on it. UK consumers want mobility.
Mobile banking on both apps and mobile Web? Now there’s an idea.
Research into consumer attitudes towards mobile banking that were conducted back in June, and outlined in my colleague, Mark Watson’s previous post, “Brits Lag on Mobile Banking,” produced some interesting results – that consumers want the opportunity to bank on their phones. The challenge is that they don’t always have the tools at their disposals to let them do what they want, when they want.
Just one out of 14 banks polled in the UK offered a mobile app and a mobile Web site. Surprisingly, just four of these banks offered an app of some sort. But the app offered by those that did was for iPhone.
The U.S. fared better, as seven of the top 10 U.S retail banks had both a mobile app and a mobile-optimized Web site. This market maturity could certainly account for the fact that almost twice as many Americans as Brits use mobile banking. Yep – that’s twice as many people in the U.S. who mobile bank. Are UK banks missing an opportunity? You bet!
Since customer service is often the single determinant for individuals choosing a bank, the channels with which people are actually able to access core services are becoming increasingly important. So what are the banks doing to make your life easier? Well, in the UK, clearly not enough. Brand perception and trust will go a long way towards overcoming the main barrier to entry – security, as stated by consumers on both sides of the Atlantic. But if customers (particularly young customers who live through their phones and might be looking for a first bank account) find that the channels on which the bank is present do not fit in with their lifestyle, then rest assured they will be looking to another bank to fulfill their financial needs.
Grade-A customer service - pay with your device.
We know that customers want to mobile bank. And we know that it works because people are already doing it. But more than that, the fully-portable, fully-functional device in your pocket is more than just a reference tool. The imminent arrival of Near Field Communication (NFC), which allows for data exchange between two devices that are close to each other, and mobile payments (M-Payments) to stores, restaurants, etc., through a mobile device, means that customers will invariably be using their devices more to conduct transactions.
So we have to expect that they will also be keeping an eye on budgets more on the move. I know I am preaching to the converted, but the point remains that the mobile phone is as integral to the daily life of most consumers as is buying products and managing household finances.
UK banks clearly have the most ground to make up. It is not enough to cater to just the iPhone owners – it hasn’t been enough for a while now. At the very least, a bank developing a new app should be looking at Android as well – it does have a market share of 45 percent in the UK after all. But what about those consumers who don’t own a smartphone? Or who feel more comfortable banking online with all the obvious security protocols? Neglecting to offer a mobile Web site, which allows all the functionality of the usual Web site, but takes up a fraction of the data, is essentially cutting this customer off.
It’s not a case of Web vs. apps anymore. Having both is the only way to offer all the services that your customer wants. By building on the existing security and basic functionality which exists today, banks will give themselves a clear competitive advantage, particularly as the number of Internet-enabled mobile devices continue to grow.
Tags: Jim Somers, Marketing Moonshot, Mobile Apps, Mobile Web, UK banking
