Mobile banking adoption boosts revenue - study
19 January 2016 | 8775 views | 0
Customers who start using mobile banking are less likely to leave their provider and will use more products and make more transactions, creating more revenue, according to research from Fiserv.
Working with market research firm Raddon, Fiserv examined data from 67,000 customers from eight credit unions and nine banks, comparing their behaviour in the three months before adopting mobile banking and the three months after.
The study shows that average product holdings - including loans, certificates of deposit, credit cards, and mortgages - increase noticeably following adoption of mobile banking. Mobile users have an average of 2.3 products from their primary financial institution, versus 1.3 for their branch-only peers.
Meanwhile, in the three months after adopting mobile banking, users increase the number of debit and credit card payments, ATM transactions and ACH transactions they make, generating revenue through things like interchange fees.
These factors lead to higher average revenues. For credit unions, members that use mobile banking generate 36% more compared to branch-only members. Banks see a 72% difference.
Matt Wilcox, SVP, marketing strategy and innovation, Fiserv, says: "The financial institutions in this study are seeing tangible revenue from mobile banking. Marketing mobile banking and highlighting how it can help consumers keep pace with the speed of life is absolutely essential if financial institutions want to grow adoption and use of the service and reap the benefits of their mobile investment."