Plan on opening a branch in 2012, but have yet to develop a mobile banking solution for your customers? Consider building a branch that allows your customers the ability to pick up their phone and bank wherever they are whenever they want to.
According to Callahan & Associates Inc. – a national consultant to credit unions – 34 percent of adults in the U.S. own a Smartphone, and industry specialists agree mobile banking services have become critical to a financial institution’s success.
Most consumers today are using mobile banking to perform one of five activities: check balances, transfer funds, pay bills, deposit checks or find an ATM. A recent survey noted that 40 percent of credit unions and 62 percent of banks are offering some type of mobile service to their customers.
Being able to access one’s bank account information from anywhere, at any time, is of tremendous value to customers. For example, real-time balance details and money transfers can make purchasing choices easier. And paying bills while away from home is a huge convenience for travelers.
Now is the time to plan your mobile banking strategy. One of the most important factors to consider is which delivery system to offer your customers.
Delivery System Choices
The three most popular delivery systems include: SMS (text-based), WAP (browser-based), and downloadable mobile application.
The “pros” of SMS include: widespread availability and widespread utilization among the Gen Y demographic. Also, there’s no downloading required.
Cons, however, include: limited transactional ability and its expense for users not on special text plans.
WAP is also widely availabile and does not require downloading. Financial institutions can also use it to leverage existing Web banking platforms. But there are drawbacks to its speed, device support and screen size/user interface.
The downloadable mobile application draws praise for its speed, consistent user experience and carrier “real estate” opportunity. On the down side, the user must download it; there is limited availability, and the carrier controls the relationship.
Safety First
Just like keeping your brick and mortar branch safe, the same applies to your mobile branch. No matter how hard financial institutions work to prevent fraud or unintentional security threats when it comes to the mobile banking platform, vulnerabilities exist similar to those in Internet banking, including loss or theft of mobile device; weak personal identification numbers for security; and linkage of a fraudulent device to member accounts.
A layered security approach that employs additional security measures unique to the world of mobile banking is a must.
Financial institutions should note that just launching a mobile banking service will not necessarily revolutionize how their customers bank.
Too often, banks and credit unions think that their customers will come running just by offering specific mobile services. A carefully considered strategy and robust offering of services is paramount to the success of the opening of your “mobile branch” that will allow your customers to access their accounts 24 hours a day, seven days a week and 365 days a year – all from the palm of their hand.
John LaHair is public relations manager for Digital Federal Credit Union,
Marlborough. E-mail: jlahair@dcu.org
