According to a new study, it is clear that customers are no longer satisfied with simply checking their account balance from a mobile banking app. They increasingly want—and expect—to be able to conduct more advanced functions like making bill payments, depositing checks and receiving real-time notifications on account activities.
Other key findings:
- Customers are likely to delete a mobile banking app if it isn’t useful. Of customers who have downloaded a mobile banking app, 40 percent say they have thought about deleting it.
- Nearly 2 in 3 (64 percent) believe that it’s their bank’s responsibility to immediately alert them when they have a low balance or insufficient funds to pay a bill. Moreover, the younger consumers are, the more strongly they believe that their banks should be proactive: 73 percent of 18-to-24-year-olds believe they should hear from their banks versus 56 percent of those over 55 years old.
- 68 percent of consumers also report that a banking application could have helped them avoid a financial problem such as an overdraft or bounced check. Among those under 35 years old, a remarkable 80 percent believe it could have helped.
- The top feature that survey respondents want from their banking app is notice of irregular account activity, yet 81 percent of those surveyed say they have never received such notices.
Learn more about Monitise’s “Bank Anywhere” products, which include proactive alerting, mobile remote deposit capture, bill payments and other useful account management features.
Congratulations to M&T Bank, which is providing its customers with convenient access to vital bank account activity and greater control of their finances through a dozen new customizable alerts.
With M&T Bank Alerts, customers can now receive text messages, emails or notifications through the M&T Bank mobile application to stay up-to-date on account information and check card activity.
New M&T Bank Alerts include:
- Account Alerts: Available balance, high or low account balances, large withdrawals or deposits, and cleared or returned checks.
- M&T Check Card Alerts: Approved or declined transactions and online/phone purchases.
- Security Alerts: Suspicious or potentially fraudulent activity and PIN change alerts related to the customer’s M&T Check Card.
“Our new alerts give our customers more direct control of their finances right at their fingertips,,” said Mike Shryne, senior vice president for alternative banking at M&T. “We believe that empowering our customers by giving them options and convenience is consistent with M&T’s commitment to understanding what’s important to our customers.”
First Interstate Bank is readying to roll out deeper mobile banking functionality to its customers. The Billings, Mont.-based community bank is expected to release the technology sometime this quarter, Lyn Blotkamp, virtual services manager, revealed in an interview with Bank Innovation.
The $7.1 billion banking organization is using Clairmail Inc. to broaden its mobile banking capabilities, which are currently limited to mobile web, said Blotkamp.
With its Clairmail partnership, First Interstate will soon boast mobile banking apps for smartphones.
“We wanted something better than we offered,” said Blotkamp.
“Better” will also include rolling out more features – including remote deposit capture technology and interactive alerts, such as reminding a customer that his loan payment is due, and letting him take action through the alert.
A new report from Juniper Research shows that a growing user acceptance of “push” mobile banking and a sharp rise in smartphone adoption will drive users of transactional mobile banking services up from 185 million in 2011 to more than 550 million in 2016.
According to Juniper, mobile banking is gaining traction thanks to the use of advanced capabilities such as banks bundling mobile bill presentment and payment services within their overall mobile banking platform and additional momentum from smartphone applications.
Those users who make bill payments are expected to continue conducting transactions actively and aggressively as they become more accustomed to usage. As consumers engage in increasingly mobile lifestyles, approximately 80 percent of total mobile banking customers will pay their bills via a mobile device by 2016, Juniper said.
“Banks are realizing that consumers expect – and will demand – mobile access to their accounts,” said Juniper research director Windsor Holden. “Any bank which does not offer such a service as standard will be at a competitive disadvantage.” Read More »
DBS Bank, one of the largest retail banks in South East Asia, recently announced plans to launch a real-time SMS/text alert service after a $1 million ATM skimming scheme hit over 700 DBS Bank customers in Singapore.
Tom Wills, a fraud analyst for Javelin Strategy & Research, says financial institutions (FIs) in other markets, such as the United States and Europe, can learn from DBS’s example. “Offering SMS alerts to customers for ATM withdrawals is a smart move for any FI, because it takes advantage of the strengthened transaction security that mobile out-of-band messaging offers,” he says.
Phil Blank, who works in Javelin’s Security, Risk and Fraud Practice, agrees mobile technology is vastly underused as a means of communicating transactional information with consumers. He says most institutions, especially in the US, are not keeping up with fraud trends, and they fail to adequately leverage mobile technology for alerts.
“If FIs would encourage consumers to set alerts on their credit and or debit cards, a lot of this would be detected a whole lot sooner,” Blank says. “Skimming is only effective if there is a delay between the time of the skim charge and the time the consumer notices it on their statement. Without alerts, the fraudsters will always have the upper hand.”
Learn more about how mobile fraud alerts can help FIs to reduce fraud losses by downloading the Clairmail white paper, Fraud Solution: Leveraging Mobile to Combat Fraud.
Financial institutions (FIs) are moving beyond the basics to deliver increasingly sophisticated mobile capabilities, according to a recent Forrester survey which evaluated the plans of ten top-tier U.S. banks and credit unions.
“After several years of technology-driven expectations, mobile banking is finally seeing sustained traction in the United States, and banks have rolled out support broad enough to enable consumers with nearly any mobile device to access basic banking functionality,” said Brad Strothkamp, vice-president, principal analyst, eBusiness and Channel Strategy, Forrester Research. “As consumers gain confidence with the channel, their needs are shifting from simple functionality like account balances and ATM locators to transactions like bill payment and account transfers.”
The Forrester survey indicates that FIs are moving to meet these more transactional needs by delivering increasingly robust mobile banking and payment solutions: Read More »