https://ift.tt/2KX7GDz
Banks should focus on mobile banking engagement (JPM, WFC) https://ift.tt/2JxiJ0Q This story was delivered to Business Insider Intelligence "Payments Briefing" subscribers hours before appearing on Business Insider. To be the first to know, please click here. JPMorgan Chase and Wells Fargo announced their Q2 2018 earnings on Friday, which echo the trend of ongoing but decelerating growth in mobile banking as the market matures. BI Intelligence
This slowdown is likely because of saturation in the digital banking market. Eighty-three percent of consumers use mobile banking, making it nearly ubiquitous, according to Business Insider Intelligence's Mobile Banking Competitive Edge Report (enterprise only). That saturation, not a decline in interest, is causing firms to add digital customers at a slower rate; they're seeing customers new to banks rather than those new to mobile offerings. So banks should focus on new ways to engage their users; They should pursue other avenues of growth to onboard new customers. This deceleration suggests that banks should launch other growth initiatives that cater to an audience that hasn't adopted their primary platforms. For example, Chase just announced the rollout of its all-digital bank offering, Finn, which could help it target a younger audience; 67% of millennials use mobile banking but may be looking for a less expensive alternative to traditional banks that doesn’t charge high fees or require monthly minimums, according to USA Today. Leveraging their platforms can help increase customer loyalty. Shifting their approach from onboarding a high volume of new customers to bolstering engagement among existing customers can ultimately lead to stronger customer loyalty. Firms should use their digital channels as relationship-building platforms by offering value-added services, such as peer-to-peer (P2P) transfer functionality and card controls. Sixty-three percent of consumers view the ability to send P2P payments as an important or extremely important factor in bank selection, per our Mobile Banking Competitive Report, so adding this feature among others could keep users from looking to third-party platforms. That will open a larger opportunity for these firms to upsell customers on more lucrative services, like credit cards and mortgages, which can ultimately increase their lifetime customer value and allow banks to get the most value out of their digital platforms. See Also:
Business via Business Insider https://ift.tt/eKERsB July 16, 2018 at 09:42AM
0 Comments
Leave a Reply. |
Categories
All
Archives
October 2020
|