Evolution in Banking – The Use of Mobile Banking Apps
The way we live is changing with technology, and so is the way we bank. More and more people are using banking apps on their smartphones to manage their money, whether it’s to check their statements, make transfers and payments, more Thais are now using Apps instead of the traditional means of banking.
The reward for success for the banks is improved customer convenience and retention, and substantial operational cost savings.
New findings released from innov8asia together with marketbuzzz who conducted a survey of n=1000 current users of mobile banking apps will help retail banks to target, convert, retain and keep engaged the most digitally receptive customer segments through a more aligned online banking feature set.
From the study it is clear that mobile banking through Apps is going from strength-to-strength. The findings show that 69% of mobile phone users who responded to this survey currently use a mobile banking app to carry out a variety of financial transactions.
In addition, the study shows that the rate of usage is high with almost half (45%) of these smart-phone users use their Mobile Banking App at least once a week and another 36% use it at least once a month.
While there is a wide range of features being used by users of mobile banking apps, the two main purposes were both transaction and information based features with fund transfer and checking account balances most frequently mentioned in this respect.
Grant Bertoli CEO of Marketbuzzz commented on the usage, “It’s all about convenience: anytime, anyplace, anywhere and benefits of security, savings and control also recognised. We are in a new era where utilising the mobile phone, to access finances along with other dimensions such as mobile payments, will clearly reshape the entire financial system based on consumer’s demand for convenience, faster and more efficient ways to pay and to manage their finances. Why would you go to a bank and stand in a line when you don’t have to and instead you can access very conveniently through your mobile any time, 24 hours a day!!”
Khalid Khan, Managing Partner and Co-founder of innov8asia added, “while the uptake of usage was clear, most retail banks have fallen into the trap of treating customers as a relatively undifferentiated group of users and, by extension, are delivering a ‘one-size-fits-all’ offer. Retail banks must also consider which consumers they want their mobile offerings to appeal to in order to optimize customer retention and acquisition, and improve service adoption.”
Relative to the general population we see that banking app users are more likely to be younger, single, higher SES and female. Perhaps this is not surprising given the likely easy relationship and familiarity these audiences have with mobile technology but there is an expectation more banked customers will come on board.
The study also found that the largest barrier to further adoption was the concern about security with 44% being concerned and worried about people hacking their account.
Khan and Bertoli agreed “While consumer demand was there, there is also the need for greater collaboration in the financial ecosystem and associated governance, to ensure that new methods of banking are not only fast, seamless but also provide a secure environment”.
No doubt the opportunity is there for more Thai’s to use mobile banking Apps on a regular basis. This will invariably become a more standard offering from banks but as with all channels in which a bank’s customers access, there is a need to continue to tailor the offer to more closely meet customer needs and to ensure it is delivering a fast and seamless experience that consumers expect and demand in this mobile world we live in.
Looking to the future, Education of Banking Apps, Simplification of Use and providing Access to everyone will be the three cornerstones of greater inclusivity and participation for Mobile Banking Apps. Winning over new customers and increasing the frequency of use will no doubt come with better Features And Functionality – The right Privilege and Rewards Programs, Customisable alerts and notifications, Account query, Instant messenger/chat support.
Whichever banks offer the best programs will no doubt be known given the rise in adoption and lead to potential banking customers to make the switch if their existing bank doesn’t make the experience worthwhile!
Marketbuzzz currently utilizes the user base of Buzzebees which has over 29 million users. It is the biggest database in South East Asia. In this ecosystem, we can conduct mobile survey effectively, fast, accurately, and everywhere every time like 24/7. Apart from that, we can design and customize the questionnaire in many aspects based on client needs. Further, there are several kinds of services for mobile survey such as product development, brand improvement, advertisement evaluation, customer and employee satisfaction, and consumer behavior study.