ABA Banking Journal - July/August 2015 - (Page 42)

> MOBILE BANKING Five Tips for Staying Ahead in BY TINA OREM c mobile retail Banking oNSIDER it a sign of the times: A tiny device that fits in your back pocket is fundamentally changing how bank customers behave, as well as how banks invest capital and even how they hire. By 2014, seven in 10 U.S. adults had smartphones. They're radically changing how people shop, communicate, consume news, get around, listen to music-and bank. They're why 39 percent of mobile phone owners with bank accounts use mobile banking, up from 33 percent in 2013 and 29 percent in 2012. And the mobile banking market's not only getting bigger, it's getting more entrenched. The number of people using mobile banking at least once a week climbed to 45 percent from 37 percent two years ago, according to RateWatch. That's why "convenience" is as much about technology as it is about branches. "As this demand increases, it will become even more crucial for banks to offer mobile services, or risk losing customers to competitors," RateWatch 42 ABA BANKING JOURNAL | JULY/AUGUST 2015 marketing manager Kimberly Myszkewicz says. "The more a person is engaged in the service, the more likely they are to stick with that institution for other services." With almost three-fourths of Americans now saying their relationships with banks are primarily transactional, according to Accenture, having the right mobile offering isn't just trendy-it's a survival strategy. Here's what four experts say banks should do to stay relevant in mobile. 1 Don't design things just for millennials. Mobile is often regarded as the domain of the twentysomethings, but it's actually gaining traction in all age groups. "Today, you find everybody pretty much across the board succumbing to the lure of mobile," says Alex Carriles, director of self-service channels at BBVA Compass. Two or three years ago, the bank's mobile audience was primarily early adopters, but at the end of last year, mobile use surpassed all other channels. Now between 25 percent and 30 percent of BBVA customers are mobile-only, Carriles notes. There's an important caveat though, warns Janine Kasper, a channel operations manager at Q2 Software, which has about 3.1 million end users. "It has to be easy to use, because the millennial group, while they love technology, they are not necessarily the techies. They just know that if they've got more than three clicks that they have to do to get anything done, they're going to bail." ABA, through its Corporation for American Banking subsidiary, endorses Q2's virtual banking solutions. Security is the trigger for baby boomers, she adds. "If you have a digital or a virtual banking solution that is easy to use and is safe- meaning that there is a way to authenticate that person so the individual has the security and peace of mind of knowing what they're doing is going to be confidential-the older markets and those baby boomers are picking it up even more now," she explained. 2 offer mobile deposit. "One feature that really has exploded recently, and this is one where that process has already taken place and people have realized it, is mobile deposit," says Rob Morgan, ABA's director of emerging technologies. "Maybe five years ago, less even, a few banks came out with

Table of Contents for the Digital Edition of ABA Banking Journal - July/August 2015

CHAIRMAN'S VIEW
UPFRONT
OPERATIONS
ECONOMIC OUTLOOK
PICTURE THIS
BANKING’S APPALLING REGULATORY STRUCTURE
HOW BANK CULTURE DRIVES SUCCESS
KEY CONSIDERATIONS FOR CREATING SUCCESSFUL BOARDS
VENDOR RISK MANAGEMENT
FIVE RISKS THAT WILL SHAPE BANKING’S FUTURE
CEO SYMPOSIUM
MOBILE BANKING
PAYMENTS
ABA COMPLIANCE CENTER INBOX
INVESTOR PERSPECTIVE
COMMUNICATIONS
REAL ESTATE LENDING
LEGAL BRIEFS
FROM THE STATES
BANKER RECOMMENDED READING
INNOVATIONS IN SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS

ABA Banking Journal - July/August 2015

https://www.nxtbook.com/naylor/BAKS/BAKS0318
https://www.nxtbook.com/naylor/BAKS/BAKS0218
https://www.nxtbook.com/naylor/BAKS/BAKS0118
https://www.nxtbook.com/naylor/BAKS/BAKS0617
https://www.nxtbook.com/naylor/BAKS/BAKS0517
https://www.nxtbook.com/naylor/BAKS/BAKS0417
https://www.nxtbook.com/naylor/BAKS/BAKS0317
https://www.nxtbook.com/naylor/BAKS/BAKS0217
https://www.nxtbook.com/naylor/BAKS/BAKS0117
https://www.nxtbook.com/naylor/BAKS/BAKS0616
https://www.nxtbook.com/naylor/BAKS/BAKS0516
https://www.nxtbook.com/naylor/BAKS/BAKS0416
https://www.nxtbook.com/naylor/BAKS/BAKS0316
https://www.nxtbook.com/naylor/BAKS/BAKS0216
https://www.nxtbook.com/naylor/BAKS/BAKS0116
https://www.nxtbook.com/naylor/BAKS/BAKS0615
https://www.nxtbook.com/naylor/BAKS/BAKS0515
https://www.nxtbook.com/naylor/BAKS/BAKS0415
https://www.nxtbook.com/naylor/BAKS/BAKS0315
https://www.nxtbookmedia.com