To make life a little easier, my bank offers a way to deposit checks without ever leaving my seat. In a world of connectivity and convenience, mobile banking has begun to increase steadily among offerings from banking organizations. Need some extra money in your checking to pay bills? No problem, a few clicks on the phone and it’s there.
A recent Global Mobile Banking Report from KPMG shows that the growth we’ve seen from mobile banking is just the beginning. Adoption rates among developing countries are 60-70 percent and it’s predicted that mobile banking users will increase to 1.8 billion by 2019. That’s 25 percent of the world population!
Looking at the transaction costs, we can clearly see that mobile banking is the most cost-effective solution for any financial organization. With the cost of transactions at the physical branches being 43 times the cost of using a mobile channel, will mobile banking cannibalize brick and mortar locations?
Not completely. The next step will be having centralized banking hubs for largely populated areas, while dropping down to more mobilized operations where fully operational branches once stood. Interactions with consumers would be done through stations with tablets, interactive ATMs and would require less manpower at each branch.
Looking forward at your marketing plan, a clearly defined mobile banking strategy should be noted as a must-have. A mobile platform offers the opportunity to cross-sell other offerings, huge cost reduction and the ability to have multiple layers of consumer experience within mobile banking.
As mobile banking becomes the go-to channel for consumers, marketers should be aware that a poorly executed campaign might hurt your market share as the consumer market rapidly evolves. The cost savings won’t happen if branches don’t look to phase out some of their brick and mortar operations. Ante up with these three strategies identified by KPMG:
- Lower latitude of offerings with clear simplicity
- Basic offerings through mobile devices
- Slowly developing enhanced mobile capabilities
- Early-to-late majority adoption
- Medium range of offerings with middle-of-the-road complexity
- More expansive mobile banking capabilities
- Early adopters following the marketing movement
- Experimenting with highly advanced and aggressive strategies
- Innovators for the mobile banking market
- Greatly invested in finding new ways to reach the consumer through mobile landscape