@Banks: Upgrade Mobile Banking and Monetize the Customers
One of the key findings and assumptions in the mobile banking competitive landscape and go-to-market research was the belief that banks would enable the channel with a subset of online functionality and then drive it up as the effectiveness and popularity of the channel climbs.
When nearly half of community banks suggest that they would spend their precious product development budgets on mobile instead of lending or deposit products, it suggests 2 key points:
- The P&L impact of mobile through reducing customer attrition and increasing effectiveness of new accounts is bigger than anyone thought.
- Forecasted/YOY penetration rates of mobile banking are flying, in particular for the high balance customer set.
When asked about what new initiatives banks were undertaking for the rest of 2010, 44% of banks said they were interested in purchasing or upgrading their mobile banking platform – the most of any other product category. After mobile banking, 22% said they were interested in purchasing or upgrading an online cash management or customer relationship management platforms. Twenty percent said they were planning to buy or upgrade enterprise risk management, loan origination or online banking capabilities.