Mobile Banking Will Be the Dominant Customer Interaction Channel by 2015 | MobileFI

Mobile Banking Will Be the Dominant Customer Interaction Channel by 2015

February 6, 2012 | Adoption, Analysts, mobile banking and Research | 0 Comments

A new report by PwC indicates that by 2015, mobile banking will overtake branch networks as the dominant channel of customers interaction for financial institutions (FIs), based on strong demand for digital banking products and consumers’ willingness to pay for them.

The PwC report, The new digital tipping point, suggests that banks are missing a vital new source of revenue growth as they have been too slow to respond to the digital innovations that have radically changed business models and redefined customer experience.  This is despite strong demand for digital banking products from consumers and the fact they are willing to pay for these.

PwC conducted research with over 3,000 banking customers across nine developed and emerging markets and found that most consumers are willing to pay up to $15 per month for mobile banking services that offer convenience and value.

The research reveals that there is customer demand for innovative mobile offerings such as social media notifications, an electronic wallet for loyalty cards and financial tools provided by banks, and that these are the products consumers are most willing to pay for.

In the UK, almost two thirds (65%) of respondents said they are willing to pay just over £4 a month for their bank to store loyalty card information and convert accumulated points into cash. This amounts to an annual fee income for banks of approximately £50 per customer.

Stephen Whitehouse, retail and commercial banking partner at PwC, said: “Despite customers’ appetite for new and innovative digital banking offerings, and the fact they are willing to pay for these, the majority of banks still only provide basic mobile and Internet banking services. Banks are clearly missing a trick if they don’t start to invest in their digital offerings and only see digital as a way to reduce costs.

“Banks have generally been too slow to embrace the digital innovation customers now expect from other industries, such as retail or travel. This needs to improve if banks are to hold on to their existing customers and attract the next generation, as the quality of a bank’s digital offering will become an increasingly important factor for consumers.”

Download the Clairmail white paper, Mobile Banking Journey: Maximize Profitability Via an Enterprise-Wide Mobile Strategy, to learn how the mobile channel can help FIs not only reduce costs, but also to improve monetization by preserving existing fees, optimizing cross-selling, enabling new fee-based products, maximizing interchange, driving customer acquisition, improving customer retention and facilitating new revenue sources.

via Mobile Banking Will Be the Dominant Customer Interaction Channel by 2015 | MobileFI.

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