Missing the Mark on Mobile Banking

February 10, 2011
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How are banks missing the mark on mobile banking?

In sum, banks are not properly positioning the banking channel, according to a new Forrester report.

The heart of the matter:

“Lacking any clear differentiated functionality, mobile banking appeals most strongly to those consumers already inclined to use the mobile channel,” said Emmett Higdon, analyst at Forrester, Cambridge, MA, in a blog post.

“Unfortunately, this segment is dominated by those already using online banking,” he said.

“As a result, banks are not realizing the full benefit of switching customers to cheaper servicing channels, but instead are seeing cannibalization of one low-cost channel—online—by another—mobile.”

To reach one in five U.S. adults, as Forrester predicts mobile banking will do by 2015, U.S. banks will need to enhance today’s functionality significantly to create a unique value proposition that resonates with both online and offline consumers.

That is if banks can think about mobile banking with a fresh perspective, so that it evolves as the unique channel that it is.

 

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One Response to Missing the Mark on Mobile Banking

  1. Anonymous on February 11, 2011 at 4:52 pm

    JJ, The latest report I have seen from Nielsen indicates that feature phones are going to be overtaken by smartphones by the end of this year. I agree with you that it all comes down to usability, but I think that the percentage of consumers who end up using mobile banking will depend on how well banks incorporate all of the uniquely valuable functionality of the mobile channel (which Barry talked about in his comment) into a seamless user experience.

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