Leading an Effective Mobile Strategy

Michael J. McEvoy ath Power Consulting

1-978-474-6464, extension 117

[email protected]

www.athpower.com

Leading an Effective Mobile Strategy

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• 240 banks and credit unions

• 1,527 mobile banking users

• Audited actual mobile app usage

www.athpower.com

Leading an Effective Mobile Strategy

© ath Power Consulting Corporation. All Rights Reserved.

Ads 5%

Other 11% What prompted you to use your mobile banking application?

Wanted to Try it 74%

My Bank Told Me 10%

Review of Strategies for Supporting and Growing Mobile Needs to be Ongoing

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Big Opportunity for Banks to Improve Adoption


5%

16%

32%

19%

20%

8%

Multiple times a day

Daily

2-3 times a week

Once a week

1 to 2 times a month

Less than once a month

How often do you use mobile banking with your bank?

72%

Mobile Customers Are More Engaged, Loyal

4 © ath Power Consulting Corporation. All Rights Reserved.

Why Mobile Banking Adoption and Usage Matter

© ath Power Consulting Corporation. All Rights Reserved. 5

More Interaction / More Engaged

Customer

Engaged Customers are

More Loyal

Improving Retention and

Share of Wallet

Retaining the Customer

• 3 in 4 mobile banking users surveyed indicate no quantifiable risk of switching their accounts to another bank within the next 2 years

Engaging the Customer

• 72% of mobile banking customers ‘check-in’ at least once a week

Acquiring the Customer

• 7 in 10 mobile banking customers place high importance on mobile offering in bank choice

Opportunity to Modernize Relationship with Customer

• Provide value-added services • Provide services outside of traditional banking • Revenue potential

Risks of Misplaced Investments or Ineffective Deployments Will Rise as Adoption Improves

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Few Institutions Have Distinguished Themselves in Mobile Banking – Role of Branding in Shaping Mobile Offering?


74%

58%

49% 44%

41% 40% 40% 40% 37% 37% 36% 35% 34% 32% 31%

26% 22%

0%

20%

40%

60%

80%

100%

% High Satisfaction with Mobile Banking Relationship

Gap in User Support Needs Addressing


3% 0%

14%

6%

38%

7%

23%

14%

0%

25%

50%

Text interaction with a banking agent

Video interaction with a banking agent

A tutorial on mobile banking features

Banking advice

Available Feature Would Like

12%

16%

17%

19%

56%

61%

62%

Apply for a mortgage

Purchase a CD

Apply for an auto or other loan

Invest money in stocks or bonds

Conduct debit transactions at a store or restaurant

Receive special offers, promotions, coupons

Store and maintain rewards points

Percent Who Would Use Feature

Improving Value-Added to Consumers Will Help Adoption



Evolving Need to Align ‘Customer Experience’ with the Device and its Key Attributes

Bigger Screen: • Detailed information (e.g. PFM) • Viewing statements / documents • Graphical representation

Less Mobile than Smartphone:

• Less useful for ‘on-the-go’ activities

Potential for Small Business Banking: • Less mobile device less likely to be lost • No alternate primary function (e.g. telephone)

Small Screen: • Quick transactions (e.g. checking balances) • Check what’s available for spending – like opening a wallet

Device Mobility:

• Location based services • P2P Payments • Point-of-sale transactions

‘Always on’:

• Alerts (fraud, stock trades, balance alerts, etc.)

Smartphone

Tablet


Dedicated App for Wealthy Segment

• Consolidated account view –

current day gain/loss

• Videos from financial specialists

• Real-time market quotes

• Analyst report content

• QuickPay P2P payments service

• RDC

Investments: JP Morgan Chase Private Banking App


Portfolio of Products • Banking

– RDC

• Insurance – View policy details – Past statements – Premium payment

• Investments

– Real time stock quotes – Place a trade – Financial advice (videos,

articles – optimized for tablet)

Leveraging ‘Swipe and Tap’ in iPad: USAA example

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Data Visualization and PFM Tools: Citi iPad App

Three Panel View • ‘Overview’ Panel – all accounts

• ‘Analyze’ Panel – access to

PFM tools, including pie charts of spending

• ‘Explore’ Panel – compare spending patterns to those of other customers

• All graphics work is done by app. on the device

• Aims to drive customer engagement – helps users analyze and plan finances


Access to Citi customer support through Twitter

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• Device convergence: laptop / Tablet / smartphone

• HTML5 to assist convergence

• Touchscreen laptops, Windows 8 ‘Tabletization’ of websites?

– Expect websites to be reengineered for Touchscreen devices: ‘Point-and-click’ to be replaced by ‘tap-and-swipe’

– Shift away from sequential navigation paradigms to Tablet-like experience

– Feedback from Tablet apps. to websites

• Dilemma: How to serve up the ‘right’ experience??

A Few Megatrends Coming Our Way…..

Touchscreen Laptops

Smaller Models Emerging

Larger Screens


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• Ensure mobile strategy aligns with overall corporate strategy

• Leverage mobile offering to reinforce branding

• Aim for corporate-wide approach to mobile – avoid silos

– customers want aggregated view, not grapple with multiple apps.

• Focus on value-added functionality – unique or best suited to mobile

– will help adoption

– improves revenue potential

• Consider separate, distinct offerings, optimized for Tablet and Smartphone

• Measure how you are doing – ‘customer experience’ metrics, adoption, usage

• Communicate your mobile offering to your customers… how are you currently ‘selling’ mobile banking!?


"We believe in five years, more people will have access to mobile phones than clean water." – Citi Global Chief Technology Officer Yobie Benjamin

Meanwhile….Creating an Effective Mobile Strategy

Economy & Finance

Leading an Effective Mobile Strategy