|By Kevin Benedict||
|May 6, 2014 03:06 PM EDT||
The banks of the future, will not look like the banks of today.
I have met with the business and IT strategy teams of many banks around the world over the past 12 months. These discussions have been some of the most interesting as there is a sense of urgency. The banking and financial services industries are feeling tremendous pressures from both internal and external sources to respond quickly to emerging mobile and online technologies, and the changing behaviors of consumers.
Here are 12 talking points from my latest workshops:
- Mobile and online technologies are transforming the way banks serve clients
- Mobile banking adoption rates will reach 33 percent this year, up from 20 percent in 2011. Source: Swacha
- Mobile payments will reach $90 billion by 2017, up from $13 billion in 2012. Source: Forrester's 2013 US Mobile Payments Forecast report
- 60% of smartphone or tablet users who switched banks in the fourth quarter said mobile banking was an important factor in the decision. Source: AlixPartners
- Consumer preferences are changing and a generational shift in behavior is driving to new digital channels
- There is a rapid adoption of digital consumer banking in both developed markets and in markets where consumers are predisposed to using mobile technology rather than bricks-and-mortar (emerging markets)
- Banks are being presented with new competition from non-financial firms providing financial services
- The ability to innovate will be a key competitive differentiator, and innovation a critical driver of growth in the future for banks
- Uniform experience (omni-channel) will be required across all channels, and is a prime factor in customer satisfaction
- There is a growing convergence of personal financial management tools and mobile banking
- After providing basic consumer banking services on mobile apps, the next steps are to understand individual consumer's transactions, and the nuances of their unique investment behavior using Code Halo strategies
- Banks are seeking efficiencies and cost reductions. The average cost of a mobile transaction is 10 cents, about half that of a desktop-computer transaction and far less than the $1.25 average cost of an ATM transaction. (Source: Javelin Strategy & Research).
Mobile apps are rapidly replacing branches as the preferred form of customer interactions with banks. Customers are evaluating the quality of a bank based upon their mobile banking capabilities today. In customer service surveys, providing great mobile apps represents an important component of customer satisfaction. As a result, you would think that budget priorities and investments in mobile technologies would be jumping up in response, but as of today, budgets for mobile apps and mobile banking services represent less than 5% of IT budgets.
Writer, Speaker, Editor
Senior Analyst, Digital Transformation, EBA, Center for the Future of Work Cognizant
View my profile on LinkedIn
Learn about mobile strategies at MobileEnterpriseStrategies.com
Follow me on Twitter @krbenedict
Browse the Mobile Solution Directory
Join the Linkedin Group Strategic Enterprise Mobility
Join the Google+ Community Mobile Enterprise Strategies
Recommended Strategy Book Code Halos
Recommended iPad App Code Halos for iPads
***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and digital transformation analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Nov. 27, 2015 02:30 AM EST Reads: 444
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Nov. 27, 2015 02:00 AM EST Reads: 508
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Nov. 27, 2015 01:30 AM EST Reads: 457
Nov. 27, 2015 01:00 AM EST Reads: 458
Nov. 27, 2015 01:00 AM EST Reads: 305
Nov. 27, 2015 01:00 AM EST Reads: 418
Nov. 27, 2015 01:00 AM EST Reads: 553
Nov. 27, 2015 12:45 AM EST Reads: 392
Nov. 27, 2015 12:00 AM EST Reads: 332
Nov. 26, 2015 10:00 PM EST Reads: 393
Nov. 26, 2015 04:00 PM EST Reads: 382
Nov. 26, 2015 03:30 PM EST Reads: 526
Nov. 26, 2015 03:15 PM EST Reads: 521
Nov. 26, 2015 02:15 PM EST Reads: 499
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
Nov. 26, 2015 01:00 PM EST Reads: 392