Your Customers Are More Ready for Mobile Banking Than You Are

That is a bold statement, but – with a few noteworthy exceptions – it's true. As recent figures from Retail Banker International show 20,000 Bank of Ireland customers signed up in advance for the bank's new Pay to Mobile service. And furthermore the number of consumers using banking via their mobile is growing quickly; whilst in 2010 the figure was estimated at 9.7%, by 2012 this figure increased to 20.4%. People are not just ready for standard mobile banking; they're ready for an expanded version and more mobile services, writes Daniel Melo

Daniel Melo is the Director & Head of Pre Sales Consulting for the EMEA at FICO. He has more than 20 years of experience on Credit, Collections and Risk Management for large financial institutions in Europe and the Americas. His experience covers all aspects of the Credit Life Cycle, from Analytics and Scorecard Development, Strategy and Change Management and direct Operational Management.

Daniel has extensive familiarity with emerging markets during volatile economic periods. Credit risk management and debt collection in turbulent times are his specialties.

Your customers are more ready for mobile banking than you are. That is a bold statement, but – with a few noteworthy exceptions it’s true. As recent figures from Retail Banker International show 20,000 Bank of Ireland customers signed up in advance for the bank’s new Pay to Mobile service. And furthermore the number of consumers using banking via their mobile is growing quickly; whilst in 2010 the figure was estimated at 9.7%, by 2012 this figure increased to 20.4%, writes Daniel Melo

People are not just ready for standard mobile banking; they’re ready for an expanded version and more mobile services. They’re ready for you to text them when fraud is suspected, send them automated reminders to pay overdue bills and allow them to do more self-service banking on their phone. Figures from FICO’s 2012 Market Survey show that 43% of consumers would like their bank to engage with them more along these lines.

How do we know that consumers are ready? From the results our clients have seen by making mobile devices the centre of customer contact strategies. One bank reported a 97% customer satisfaction rate for services provided through FICO Adeptra. Another bank cut fraud losses by 50% through getting to victimised customers faster. Overall there has been a 35% reduction in fraud losses for our banking clients.

Research by Juniper suggests that by 2017 more than one billion people worldwide will be using mobile banking. Further research suggests 67% of UK banks predict that all of their customers will be using some form of mobile banking. The evidence could not be clearer – banks need to be ready for this catatonic uptake in mobile services if they want to retain their increasingly tech-savvy customers.