Consumers Want More and More from Mobile Banking. If You Don’t Keep Up, They Could Walk

 

Research by MX reports that consumer expectations for your banking app just keep getting higher. And dissatisfied users will likely jump to another app (and another bank) that ticks more boxes. How can you stay ahead in the app game?

Mobile banking apps have become table stakes for banks and credit unions, especially among Millennials and Generation Z. Research from MX earlier this year indicated that a decent mobile banking app is a must-have for nearly one in four consumers starting a relationship with a financial institution.

MX research also shows that 80% of consumers have a payment app, such as Venmo, PayPal or Cash App on their phone. In addition, 77% have a bank or credit union mobile banking app, 48% have a credit card app, 25% an investment or retirement savings app, and 17% an independent app to help manage their finances. Nearly half maintain three or more financial apps on their devices.

Now a new round of MX research indicates that the quality of the mobile banking app offered by a consumer’s banking provider can be the basis of a tighter relationship — or break the inertia that traditionally kept unhappy customers onboard.

MX’s study, “The Missing Link: Where Banks May Be Failing Consumers,” found that 57% of people surveyed said they were either not likely or very unlikely to have an account with a financial provider that offers a bad mobile experience.

“Everyone uses mobile to do their finances in some form or fashion today,” says Jessica Kendall, director of content at MX. “It’s the prevalent medium of choice and you have to have a solid app as a foundation to get consumers — and keep consumers.”

Merely enticing new customers with apps isn’t enough — “wow” doesn’t last long. Today, providers have to keep up innovation to hold onto consumers.

“Simply having an account doesn’t mean they are using the mobile app,” according to the MX study report. “It also doesn’t mean they are using the mobile app if the experience gets worse. 65% of consumers say they would stop using the app if the mobile experience changes for the worse.” [Deep Dive: Offer ‘Test Drives’ of Mobile Banking Apps for a Marketing Advantage]

We spoke with both MX about the study’s findings and with Keynova Group about that firm’s latest Mobile Banker Scorecard study, which examines the offerings of 17 major retail banking providers.

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