Get ready for banking's mobility revolution

With toddlers becoming so addicted to iPads that they need therapy and remote workers now carrying an average of 3.5 mobile devices per person, it is not surprising IT giant, Cisco, recently found customers are placing more and more trust in virtual banking.However, with the majority of online banking occurring on desktop PCs and laptops, are banks really making the most of mobile, writes David Webber

With toddlers becoming so addicted to iPads that they need therapy and remote workers now carrying an average of 3.5 mobile devices per person, it is not surprising IT giant, Cisco, recently found customers are placing more and more trust in virtual banking. However, with the majority of online banking occurring on desktop PCs and laptops, are banks really making the most of mobile, writes David Webber

According to Cisco’s global Customer Experience Research, the majority of customers are now comfortable opening bank accounts (60%) and accessing loans (57%) online. Customers are also comfortable receiving financial recommendations and advice based on location data from their mobile phones (59%) and would be happy to be sent real time notifications that assist with financial or purchase decisions (54%).

Yet, while banking customers are beginning to trust digital channels to manage their finances, this is still very much swayed towards desktop banking. Our research found that despite the sharp rise in mobile device ownership, tablets and smartphones are far less trusted for financial transactions.

Just a quarter of customers are prepared to make low value payments of under £20 via a smartphone and a mere one in ten (10%) would use their smartphone to make a high value payment of over £1,000. In fact most people (71%) said they wouldn’t even use their mobile phone or tablet to check their balance.

This perception is set to change as technology advances. Apple is rumoured to be including a finger print scanner in its next iPhone, thereby enhancing security, while the 4G roll out across the country will boost the nation’s connectivity and ability to bank while on the move. Mobile technology is moving fast and banks need to keep up. But how many are using mobile to create competitive advantage?

At the moment, not enough. However, with almost half of UK current account holders likely to consider switching their account once the strict seven-day switching regulations come into effect in just a few months, this is set to change.
Offering switching bonuses may gain additional customers in the short-term, but it will be the savvy banks who make online banking as attractive, easy and reliable as possible that will build loyalty in the long-term. And it will be this ability to offer a seamless online banking experience from desktop to device that will separate the winners from the losers when September rolls around.