Blog: The Mobile Device: Solution or Form Factor?
Recently, I was asked at an industry event why banks have struggled with adapting to mobile technology. My unequivocal response: They need to see mobile devices as the primary conduits between them and their customers, and not just another form factor to enable payments.
The mobile device must bring together best-of-breed banking functionality—like remote check capture, peer-to-peer transfers and in-store payments—with context-driven commerce—like real-time offers that relate to what users are doing, where they’re doing it and with whom.
|“Most banks simply haven’t invested in their technology resources in many years, and now are trying to deploy new and innovative service offerings as a layer on top of old, archaic technology.”|
The global head of digital strategy at a top-five international bank tells me the ultimate challenge is finding the way to give their customers this sort of all-encompassing experience. Most banks simply haven’t invested in their technology resources in many years, and now are trying to deploy new and innovative service offerings as a layer on top of old, archaic technology.
This is perhaps why when The Economist’s Intelligence Unit recently surveyed 208 banking executives, they found—for the first time since the global financial crisis—that banks are spending more money on technology, particularly digital strategies (46 percent), than on responding to and managing regulation (35 percent).
This is a step in the right direction if these banks want to be responsive in meeting the continually evolving needs of their customers. Most banks simply haven’t invested in their technology resources in many years, and now are trying to deploy new and innovative service offerings as a layer on top of old, archaic technology.
Customers clearly exercise their right of choice, and often that choice is won with a modern and differentiated service offering. According to Accenture’s “2014 North America Consumer Digital Banking Survey,” 73 percent of customers would use a bank that provides a range of digital services, including real-time spending analysis, deals that save them money, location-based deals, and ways to simplify how and where they spend their money.
“Digital banking” is a term loosely applied to many new innovations. But in any scenario, mobile devices must be a key tenet to an effective digital strategy. They’re not simply another form factor. Mobile devices are the means for financial institutions and prepaid providers to give their customers what they want, while also enhancing internal customer and revenue growth objectives.
Richard Steggall is CEO and co-founder of Urban FT, a white-label digital banking platform for banks of all sizes. He may be reached at [email protected]. This article also appears in the Spring issue of Pay Magazine, on its way to subscribers now.
In Blogs & Viewpoints, prepaid and emerging payment professionals share their perspectives on the industry. Paybefore endeavors to present many points of view to offer readers new insights and information. The opinions expressed in Viewpoints are not necessarily those of Paybefore.