Mobile-only users = Mobivores. These are not the same people who visit branches, care for in-person interactions, want paper statements or forms or access online banking using laptops. They only care about what is available on mobile channels. Any dependencies and entanglement with other channels (including online banking accessed through laptops/PCs) will most likely not meet their needs. Think frictionless access.
Here are some general trends & insight about the continual pressure that banks will feel as their consumer expectations change:
- Over 50% of teens & most young adults mainly use cell phones to access internet (2013 Pew Research Project report)
- As the number of mobile only users increase so those their expectations for availability of mobile-only experiences
- 63% of mobile consumers will be mobile bankers by 2018 (Javelin Strategy & Research)
- Over 30% of interactions are mobile banking, more than any other channel like online, branch visits and automated tellers
The roots of the behavioral change in how consumers interact with banks can be traced to the usage of smartphones. Here is how the numbers break down, over 60% of Americans own smartphone, of which 63% use their phones to go online, and over 30% of this group predominantly uses their phone to initiate and complete transactions – that is roughly 42 million people that will expect mobile banking capabilities that has similar functionality to online banking while using laptop/desktop.
Here are some banks that are already provide mobile experience: Moven, GoBnak and Hello bank!
For these new banks customer experience is everything and transactions cycle time is measured in seconds. For various reasons (mainly regulatory and compliance concerns) the rest of the world is made great inroads: Based on a Bain & Company report in Japan, Canada, India and Indonesia over 50% of digital banking interactions are mobile banking. It is time for us to develop strategies to address the unmet needs of this growing population segment.