Financial services technology provider Fiserv Inc. has published a free white paper that discusses the value FIs can realize from their mobile banking channel by taking mobile beyond basic services. The white paper is titled "Next Generation Mobile Banking: Transactions Increase Potential Return on Investment."
The Fiserv white paper outlines four benefits yielded by a well-executed mobile banking platform:
- Increased customer retention — CEB TowerGroup research has shown that mobile banking customers are half as likely as online customers to switch banks.
- Reduced channel costs — Mobile banking can help drive customers from costly assisted service channels to lower cost self-service resources.
- Transaction generation — Mobile banking use encourages revenue-generating activities such as increased debit card usage.
- Expanded Customer Base — An FI can expand its customer base simply by offering mobile banking.
The paper also outlines benefits to be gained by increasing the transactional banking capabilities available through the mobile channel:
- Greater mobile adoption — enhanced functionality increases the usefulness of an FI's mobile offering to customers and encourages them to shift interactions away from higher cost banking channels.
- Additional revenue — An FI can generate new income streams with mobile banking services such as person-to-person payments, remote deposit capture, merchant-funded offers and other cross-selling opportunities.
"[B]anks and credit unions are looking for ways to quantify the success of the mobile channel," said Erich Litch, division president of digital channels at Fiserv. "By adding capabilities that customers view as useful, innovative and convenient, banks and credit unions can continue to drive adoption while also bolstering potential return on investment."
"Next Generation Mobile Banking: Transactions Increase Potential Return on Investment" is available for free download at the Fiserv website.
For more on this topic, visit the mobile banking research center.