According to Forrester’s 2016 Global Mobile Banking Functionality Benchmark banks have broadly succeeded at enabling customers to manage transactions. However, within the same report Forrester points out, too, that one key area that requires development is banks’ capabilities to deliver additional value-added services to customers.

This shift, from money movement and transaction management towards value-added services and financial management is the next phase of development for banks. Forrester also points out that mobile banking as a platform is the main enabler of this, and that it has the potential to transform the relationship that banks have with their customers.

This is because banks can build apps that not only carry out transactions, but which enable consumers to carry out sophisticated money management tasks instantaneously, whenever and wherever they like, from the palm of their hand. Further, as mobile forms the basis upon which to build customer relationships, it means they need to consider how to develop customer relationships across mobile apps.

To place this into further context, Visa’s 2016 Digital Payments Study says that mobile banking is increasing across all age groups and that for the first time over half of its European survey respondents are using mobile banking. Further, it states that while millennials remain the most prolific category, other age groups are rapidly catching up. It points out the following growth rates: at 33%, the highest growth rate is the 55-64-year-olds, while millennials 18-34s have a growth rate of 24%.

So, as mobile apps become increasingly relied upon, what should banks consider as they evolve their mobile banking strategy?

Money management tools

According to Forrester, banks currently offer excellent transaction management and make it easy for customers to see account information. But, they generally fall down at offering money management tools.  Today, customers don’t just want to see their transactions, they want to be able to understand and manage their finances.

The banks that are doing this offer the following capabilities: easy mobile site or mobile app navigation and task management; access to transaction history; spending forecasts; and money management tools that have been appropriately developed for that customer type, region, and mobile device; and, further, a distinct appreciation that mobile banking presents a crucial opportunity for banks to help customers manage their finances better by offering financial tips, suggestions and advice. There are many tools available today for money management but integrating them with mobile banking improves the end user’s overall experience while giving the financial institution a way to strengthen their customer relationships.   

Optimising customer relationships

The industry experts, GSMA, say that globally in 2016 there were close to 5 billion mobile connections and subscribers, and in Europe, this figure was 455 million; fast forward to 2020 and this figure is forecast to increase to nearly 6 billion globally and 473 million in Europe. So, as mobile banking penetration grows, customers start to get used to a certain way of interacting with banks and will expect certain services.

Further insight from Forrester reveals that banks that help customers successfully manage their finances via mobile provide an array of services. They not only create mobile apps, but they offer virtual assistants and bots to help people solve problems they may encounter, or when they need advice relating to certain services they are trying to access (e.g. telling your bank when you are travelling abroad). When combined with money management, imagine the user using a mobile banking bot to query how much they spent at the grocery store or coffee shop last month. Other services include video tutorials; enhanced search and voice activated search; and alert management relating to account activity.

In addition, banks that succeed usually optimise and improve their customer relationships through customer service. This means that they make it easy for customers to reach human help across a variety of channels including social media, text message, WhatsApp, email and voice. They also make it easy for customers to find branches or ATMs. Mobile banking apps offer an easy way to provide these services.

Customer relationships can also be improved through providing relevant offers. With mobile apps, banks can enable customers to access contextually relevant offers, research additional products and services, and apply for new financial products at their convenience. The opportunity that mobile presents are vast, powerful and almost endless.

Mobile touch points

As banks plan to get closer to customers, Forrester believes they must develop services that span an array of touchpoints, operating systems, and device types.  This may translate to the following: the development and adoption of apps for a range of smartphones and tablet devices; greater interactivity with banks via ATMs; and the emergence of “micro-moments” and other emerging touchpoints, which enable customers to access account information quickly.

Mobile banking as a platform

Today, banks are no longer just under pressure from each other to deliver banking services. They also face stiff competition from payment providers and fintech companies, with the whole landscape becoming increasingly disintermediated. As banks form their strategy for the future, digital transformation - with an emphasis on mobile banking - should form the heart of it.

For some banks in Europe, this will mean making minor tweaks to their existing app strategies, whereas for others, it might mean starting afresh. But, the crux of it is that mobile apps are increasingly important and relied upon by people.

Therefore, banks need to establish their strategy and ask themselves whether their business is based on a failing and redundant model or whether they need to adopt a mobile-first approach that considers all the mobile moments that drive and enhance customer relationships.  Mobile apps are here to stay and will continue to impact your business, so what is your strategy?