Banks funneling more funds into mobile banking tech
Banks have significantly increased their investment in mobile banking technology this year, according to a recent American Banker poll for its monthly Mobile Intensity Index.
FIs are upping their investment in the mobile channel. American Banker found that 68 percent are spending more on the channel than they did last year; 20 percent have increased their spending by one-half over 2013; and 33 percent have boosted their mobile banking budget by 11 to 50 percent.
The increased spending responds to consumer demands for ever more advanced mobile apps; to competition from well-funded and technologically sophisticated big banks; and to direct-bank competitors that "move nimbly and tout their ability to remove 'friction' from banking," the publication said.
By contrast, just 2 percent of bankers increased their online banking budget by more than 50 percent this year; 31 percent reported a budget increase of 11 to 50 percent.
Asked about their efforts toward seamless omnichannel banking, 28 percent said they are trying to create an omnichannel experience, about 41 percent didn't know, 16 percent were not, and 15 percent were undecided.