Everyone is searching for that elusive ROI – the mobile banking app which will bring money in and directly improve revenues. Some projects must be out there somewhere, but according to the people I have spoken with, no one is making money with mobile and
they are all struggling to identify initiatives which will provide an acceptable return on investment. Everyone is asking "is developing a mobile app worth the cost?"
Our partner, IESE, the international business school, has had the same experience with respect to social networking. In their studies, they have found that companies across all sectors are not making money with
their internal or external projects.
However, that misses the point. The benefits of enterprise social networking and mobility are not tangible. Companies shouldn’t look for ROI but instead for return on productivity. By working more effectively, companies should be able to make better use
of its employees, find expertise more quickly, and innovate more readily; improved communication and collaboration are obvious measures of improved productivity. Putting better tools in the hands of your staff can only improve their productivity and the value
they bring to the organisation.
Beyond productivity improvements, social networking and mobile applications are simply becoming a necessity. As „millennials“ (the Facebook generation) enter the work force, they are demanding tools which provide open and fluid discussion and full-time connectivity.
So companies need to start adapting, changing the culture of their organizations and learning how to use the new technologies available to them. Those that do so best will have an advantage in recruiting and staff retention.
For the same reasons, providing social networking and mobile banking solutions to customers is not an option, but a necessity. Many banks are letting others take the lead and accepting to play catch up. They do so at their own risk. Those that innovate now
will not only have the advantage of being first, but will have gained valuable experience which will let them maintain their advantage going forward.
In my blog in December, I asked “Will banks lose out to tech companies on
P2P?”. With Barclays’ recent release of “Pingit”, its novel mobile P2P money transfer application for UK customers and non-customers alike, we can now answer this question. This is a clear example of a bank that has made the investment to get out in front
of its competition. I am sure they will reap benefits for years to come.
Forget ROI and start to innovate. Get in the game.
Karl Rieder, Delivery Manager, GFT