Banks need a mobile

Mobile banking in the US is experiencing difficulties compared to other countries. According to the new Adobe report, millennials and representatives of generation X (born 1965-1979), when choosing a bank, pay attention to the quality of its mobile application.

The Adobe Digital Index report on the state of banking revealed that the average number of visits per mobile application per year in the US is 27. In comparison, in Australia this figure is 103, in the UK 78 and in Canada 73. Why is going on?

Everywhere a larger share of the banking sector’s market is made up of large banks, while some small banks generally ignore the use of mobile in their development strategies. In the USA, unlike other countries, this part of small regional banks and credit unions “outweighs” the number of large “players”. Accordingly, the level of mobile banking in the United States remains at a fairly low level.
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“Historically, when choosing a bank, consumers are based on the location of their material branches,” said Matt Roberts, senior analyst at Adobe Digital Index. "Millennials and representatives of generation X are one of the main criteria when choosing a bank to designate its mobile application."

“Banks need to think about investing applications and ensuring the simplicity of their functionality. Small banks that do not invest budgets in this industry risk remaining among the laggards. ”

Adobe analyzed 86 billion banking sites, more than 600 million reviews, and researched 1,000 US consumers.

Market fragmentation

One of the reasons why the United States is lagging behind other countries in introducing mobile banking is the strong fragmentation of the audience. The ten largest banks have a market share of 59%. Leading banks account for 80% of the Australian market, 90% of Canada and 81% of the UK market.

Many US banks have made a big breakthrough in the development of mobile. But this could not drastically change the situation. The strong fragmentation of the market and the predominance of small, regional banks that either do not use the mobile or do it irregularly inhibit the growth of the mobile in the entire US banking sector.

What prospects can banks of the United States expect? Consumers who do not receive important mobile banking options for them may prefer other banks, including those with an increasing number of “mobile-only” options .

Adobe revealed that the quality of a mobile application is an important motivational factor for switching customers to services of another bank for millenial and representatives of generation X. The report notes that 39% of millennials and 36% of people in generation X are concerned about the quality of mobile applications, compared with 13% of consumers aged 50 to 64 years. Consumers over 64 did not express any interest in the quality of mobile applications at all.

The key conclusion of the study: 53% of millenials and 62% of representatives of generation X, more than half of operations are performed through online banking.

Loan applications

Adobe also drew attention to loan applications. 40% of applications were processed through mobile phones and only 22% was approved. Through the desktop, 51% of loans for loans were issued and 39% were approved. Through tablets, consumers issued 50% of applications and approved 32%.

Statistics on the use of mobile devices for processing loan applications is as follows: 74% of transactions were made through the desktop, 16% through smartphones and 10% through tablets.

The number of approved loan applications on devices with the Android operating system significantly exceeds the approved loans through the iPhone.

Why?

Historically, iPhone users are more consistent. According to ADI, retail sites have a higher profit per visit. The reason for this may be the fact that a large proportion of iPhone users are millennials who have not yet had time to create a “solid” credit history, therefore, they have significantly less chances for credit approval.

As you can see, the mobile covers all areas of life of modern users, helping them to solve many emerging issues through mobile devices. Such a significant saving of time and effort "relished" and bank customers.

Now, in the conditions of growing competition and unstable financial situation, banks should pay attention not only to favorable customer conditions, but also to the convenience of using mobile applications. To the “court” milleniali endure the quality of execution of applications, their convenience and simplicity. And those banks that want to “stay afloat” and overtake competitors in development should put mobile at the forefront of their marketing strategy.



BYYD • Mobile Advertising Platform