These are 12 Most essential Mobile Banking Features And Why Banks dont Have Them All
OBSERVATIONS FROM THE FINTECH SNARK TANK
If you need any more proof that the pandemic accelerated consumers’ adoption of digital services, new research from Cornerstone Advisors revealed that more than three-quarters of Americans who have a smartphone are now mobile banking users.
Mobile banking adoption is approaching ubiquity among Gen Zers and Millennials (ages 21 to 40) with 88% of each of the two generations accessing their bank accounts using a mobile device.The adoption rate dips just a bit to 78% among Gen Xers (41 to 55 years old), and then drops to 57% of Baby Boomers and 41% of smartphone-owning Seniors.
What Mobile Banking Features are Consumers Using?
No big surprise—an overwhelming majority of mobile banking users use the app to check their account balances. Nearly two-thirds transfer money between accounts and pay bills, and roughly four in 10 deposit checks, send money to other people, and view their statements.
Checking account balances, transferring funds, and paying bills are table stakes for mobile banking—every bank and credit union offers these features in their banking app, and the features don’t really provide any competitive advantage or differentiation.
There are three banking features that stand out as the most important features.
Nearly eight in 10 mobile banking users rated managing balance/fraud alerts as either “critical” or “important” features. The second most highly rated feature—by 74% of users—was the ability to turn payment cards on or off, followed closely by the 71% of users who said mobile deposit is a critical or important feature.
Financial institutions trying to determine which features they should add or build should start by identifying which target market they’re going after—the differences in importance ratings by age group are significant. After the three most popular features, older (i.e., 56+) banking users’ importance ratings drop off significantly from that of younger users.