Consumers Want Better Mobile Banking, Studies Suggest

How important is mobile banking to consumers? Well, Google's “Think Insights” study found that many customers would rather switch banks than put up with poor mobile services. In fact, mobile service quality is affecting bank reputation, as well as aquisition and retention numbers, much more than ever before.

The Federal Reserve defines "mobile banking" as accessing a bank account, credit card account, or other financial accounts through a bank website, via text message, or by using an application downloaded to a mobile phone. The Federal Reserve survey found that nearly 21% of mobile phone owners have used mobile banking in the past 12 months. It is important to remember that a major portion of mobile bank users are young; 44% of mobile bank users are between the ages of 18 and 29. Like most growing technologies, used by this younger demographic suggests that it will be just a matter of time until mobile banking affects even more of the market.

Access and use of mobile banking is increasing, but the bulk of activity consists of simple bank transactions. Specifically, 90% of mobile banking is related to basic information updates, such as balance status and transaction history.

Google's “Think Insights” study suggests that banks should focus on creating the best mobile experience possible for their customers. Google's findings indicate that intuitive banking features result in the highest level of acquisition. In other words, people are not yet turning to their phones for sophisticated bank transactions, but they do heavily value social and informative features. The study even goes as far as to say that a positive mobile experience is a main driver of bank preference amongst customers.

Access to mobile banking is key for customers who are already using mobile devices for email, social media, bill pay, local search and more. Google found that 40% of consumers will choose a competitor if their current bank has no optimized mobile experiencce. With 1 in 6 people switching banks because of a poor mobile experience, retention is a metric that banks often fail to maintain.

Further, mobile experience impacts consumer perception of the bank as a brand. Almost half of those surveyed reported feeling that a company does not care about their business if they have a poorly designed mobile experience.

While smartphones are the most ubiquitous means of access, with 59% of all mobile banking done in the palm of our hands, a significant number of consumers still use traditional computers to access account information outside of the bank itself. Google's “Think Insights” study underlines the importance of mobile access as an integral part of the entire bank service.

Mobile access to financial information, be it banking transactions or loan information, is critical for a changing customer base with a need for real-time updates. LendUp has designed a mobile site to meet these needs and give our customers access to information, on their time.

Check out the full Federal Reserve Report here.

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