Mobilization Key to Loyalty in Retail Banking

January 27, 2016

According to a recent Bain & Company survey, mobile banking has advanced past the tipping point and is now the preferred method of banking by consumers worldwide.

The global management consulting firm asked 114,696 consumers which they’d miss more for a day, their mobile phone or wallet, more than half chose their phone, with the share reaching 79% in China.

This is just one marker that illustrates why Bain says banks around the world must assume a mobile-first approach for all transactions to maintain customer loyalty and satisfaction. 

The survey found that mobile channels are far more likely to delight and less likely to annoy than branch or call center experiences, leading to higher customer retention, repeat purchases and referrals. Not only is mobile overtaking the branch, but mobile is displacing online banking in many countries, and consumers are using apps more than mobile browsers.

As consumers migrate to mobile channels such as using mobile deposit, banks are also benefitting with significant cost savings through less interactions at branches and call centers. The benefits extend to higher Net Promoter Scores since Bain says the most significant factors are annoyance with the branch experience, the branch’s share of interactions and delight in the mobile and online experiences.

Mobile Capture and ID Verification Reduce Branch Visits

Bain says investing in mobile, in part to reduce branch transactions, pays off in greater loyalty. In fact, the survey found apps for routine transactions are one-third more likely to delight U.S. customers than routine transactions in the branch with frequent mobile users in the U.S. being 40% less likely to switch banks.

Bain’s findings also confirm that bank branches must evolve to meet customer needs such as mobile check deposit, or meet their demise. The survey found that customers who use a branch are three times more likely to switch banks and a branch visit in the U.S. is 2.3 times more likely to annoy than a mobile transaction.

The next big mobile opportunity for banks is to improve product sales capabilities. Already, 26% of respondents globally use mobile channels to research or purchase banking products. Consumers are also starting to purchase through mobile with 20% in China and 18% in the UK reporting banking product purchases. 

As the global race to mobilize banking continues, it’s clear that banks around the world must strive to improve and expand the mobile experience.

View the full report from Bain & Company: "Customer Behavior and Loyalty in Retail Banking". 


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Customer Behavior and Loyalty in Retail Banking