ABA Banking Journal - July/August 2016 - (Page 46)
What's Next to Leave the
FoR MoRE CoNTENT LIKE THIS,
BY dEB STEWART
ow long could you last without
your smartphone? In Bank of
America's recent "Trends in
Consumer Mobility" report, 44
percent of respondents said
they couldn't make it a day without their
mobile device. This need for constant
connectivity extends to mobile banking-
six in 10 respondents have tried a mobile
banking app, with 62 percent of those
accessing it a few times a week or more.
We've already seen the effects of this
extensive adoption on branch transaction
volume. We know that fewer and fewer
customers come into the branch to
deposit a check or to check their balance
or to see their recent transactions. But
is there more to come? Are there other
mobile capabilities in early adoption
or on the horizon that may siphon off
further transaction volume? We asked
some experts in the mobile banking field
that question and here's what they said.
James DeBello is the CEO of Mitek,
a company that provides the remote
imaging infrastructure for all of the top
50 banks and over 5,050 other financial
institutions. DeBello predicts that one
of the next transaction types to move to
mobile will be commercial deposits.
"Remote deposit as it exists today
has only scratched the surface," says
DeBello. "The next wave is in pilot at
several financial institutions. Remote
deposit for business allows multi-check
capture. So, rather than singularly
snapping a check photo, you can
take multiple photos of the front and
back of five or 10 checks. A single
deposit is made summing the total of
ABA BANKING JOURNAL | JULY/AUGUST 2016
the checks, providing the user with
a summary of those checks as they
would a deposit slip. Your accounts
receivable clerk is saving time, you're
saving money on courier services and
the money is in the bank faster."
has not borne out," Ofori-Boateng says.
And yet, the Bank of America report found
that 56 percent of respondents would
consider paying someone using personto-person payments via a mobile banking
app, indicating that the demand is there.
"P2P will continue to grow in usage as
awareness and ease of use increases,"
Ofori-Boateng continues. "The implication
of this will be less demand for cash
coming from both ATMs and branches.
But in order for P2P usage to really
accelerate, the process needs to become
more familiar, more seamless."
Robb Gaynor is the chief product
officer at Malauzai, working with over
420 banks ranging in size from $20
million to $11 billion in assets. Forty
percent of the mobile customers
at these banks are mobile-only. He
predicts that one of the next mobile
features to affect branch usage will
be in the area of account openings.
"With advances in image capture and ID
verification, it takes about five minutes
to open an account on your smart
phone. In the past, there have been
abandonment rates as high as 30-40
percent on mobile account openings
as consumers quickly tired of entering
information. Today, we can capture a
driver's license image and immediately
begin the process of opening a personal
line of credit, or credit card or even a
savings account or CD," says Gaynor.
Kwafo Ofori-Boateng is global director
for omnichannel, mobile and digital
solutions at IBM. He sees peer-to-peer
payments as another area that could
affect the branch by reducing the need
for cash. "We have to acknowledge that
P2P payments have been slow to take off
principally due to the relative complexity
and often the need to have both parties
bank with the same institution. The
expectation that the product would be
used for day-to-day types of exchanges
What are implications
for your branches?
Commercial deposits, account openings
and P2P payments were identified as
some areas to watch. Each of these
may bring both risk and opportunity.
Helping business customers to conduct
their business more efficiently through
remote deposit capture continues
to build value in your relationships.
And recognizing and enabling a
growing consumer desire to minimize
the use of cash is responding to
change in a positive way.
Are these the next big things in
mobile banking? Are there others?
No one knows for sure. The only sure
thing is that consumer expectations
will continue to evolve and we will
continue to evolve with them.
dEB STEWART of Charlotte,
N.C., is an independent
consultant working for the
financial services industry. This
article originally appeared on
ABA Bank Marketing.
Table of Contents for the Digital Edition of ABA Banking Journal - July/August 2016
HOW BANK STARTUPS BUILD LEADERS
LEADERSHIP LESSONS FROM THE WORST JOB I EVER HAD
BREAKING THROUGH $10 BILLION
PLATFORMS AND PARTNERS
EXCEEDING CUSTOMER EXPECTATIONS STARTS AT THE CORE
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ABA Banking Journal - July/August 2016