Why Community Banks Should Build a Mobile Banking App

It’s no secret that we live in an app world. Everything has an app, it seems, and if it doesn’t, consumers are demanding one to be made as soon as possible. Otherwise, they’ll find another brand or service that offers an app. Historically, this was less of a concern for banks and credit unions because customers were typically worried about the security risks of having such easy access to sensitive financial information. Now, however, people want everything just a click away, including their banking information. If your community bank is looking to keep up with the big banks, here’s what you need to know.  

    Smart phone home screen with weather icon on focus. Installed mobile applications listed on the screen.

    People are Leaving for More Convenient Solutions

    Whether you’ve noticed a drop in customers or a loss of retention or not, you probably have customers that are jumping ship for a different community bank or even a big-brand bank because they offer a mobile app for easy banking access. Your mobile site might be perfectly optimized and have all the features that people need, but it’s not an app. It’s still a website and it still requires extra steps and security. 

    Most people show their dissatisfaction with their feet. What that means is that if people aren’t happy, they will leave before they will complain. After all, with so many banking options out there today, it’s easy to find a convenient solution. Your bank has no choice to get on board or risk going under before long. 

    Customer Control 

    When you create a well-designed mobile app, you are giving customers more control over their banking solutions. They will have an easier time managing their finances, and they will continue to choose your bank instead of leaving for one that has adopted and succeeded at implementing mobile banking solutions. Convenience is the obvious reason that you need mobile banking. Giving your customers more control of their money, on their time and at their demand, is another reason that you need to get on board with mobile banking sooner than later.  

    Cut Overhead Costs

    Mobile banking allows banks to cut down on their overall operating costs by eliminating things like paper statements and canceled check delivery. Plus, banks aren’t paying additional employees to manage foot traffic and fewer branches mean fewer operational costs overall. Additionally, online transactions offer solutions that are as much as 10 times cheaper than standard ATM transactions. When you’re looking into the benefits of mobile banking adoption, remember that it’s not just about the perks for the customer. 

    More Engagement Means More Business

    When your customers are engaged in mobile banking, they are more likely to have more products and/or services, even with a smaller community bank like yours. They are typically going to be more active in their financial lives, and therefore more actively seeking loans, lines of credit, and other banking solutions. According to recent studies, mobile banking users have a higher product holding than branch-only customers.

    What does that mean? That means that while your walk-in customer may only have a checking account to cash their paycheck, your mobile customer may have checking, savings, and even be working on a mobile application for a home equity loan through your app. When it’s accessible, it’s easy and people take advantage of that. 

    The Bottom Line

    It’s no longer about whether you need a mobile banking app, but why you don’t yet have one and how quickly you can implement one. The fact is that customers are leaving for easier solutions, including major banks and credit unions that have been fully operational in the mobile world for some time now. If you don’t want to lose business, you need to go mobile as soon as possible. 

    (Sources: http://blog.lemonadelxp.com/blog/2018/3/19/promoting-mobile-banking, https://rubygarage.org/blog/mobile-banking-benefits)
     

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