Along with the increase in usage of online banking come concerns about account security and fraud. Financial institutions can soothe the fraud fears of their customers by offering two-factor authentication for their accounts. This allows members to confirm their identity with a unique authentication code that is texted directly to their mobile device. It is a must these days to provide your customers with a secure digital experience.
You wouldn’t feel comfortable pulling up to a branch with bullet holes in the window, so why wouldn’t you ensure your digital experience is as inviting as possible? As your customers rely more on online banking, your website, user interface, and remote services (digital experience) may be the primary attributes they use to judge your institution and brand. Also, with the increased emphasis on your website, any online banking outages would be viewed as if the door to their regular branch were locked during business hours. When it comes to your website, design with a mobile-first (and maybe mobile-only) mentality.
Whether through mobile web versions of your online banking portal or standalone mobile banking apps, you will need to educate your customers that your digital strategy allows them to access their accounts and get updates on their purchase activity. You will also need to make sure that your payment cards are compatible with the latest mobile payment technology from Apple, Google, and Samsung. Recent payments trends include embedded payments, mobile wallet adoption, self-service payments, and tap-to-mobile adoption. According to a report by eMarketer, mobile payments are expected to be used for more than half of all online transactions in the U.S. this year. Your customers will be part of that statistic. But will they be using your credit and debit cards?
Another key component of your digital experience (and coincidentally one of the elements with the most room for growth) is peer-to-peer (P2P) payment technology. With plenty of competition from independent providers like PayPal, being able to offer easy-to-use P2P payment options is a must to keep millennial members happy. Remember, millennials are the largest segment of the workforce – which means catering to them ensures your long-term relevance. By the end of 2023, mobile P2P apps are expected to reach over $1 trillion in transactions.
For many financial institutions, if you haven’t already, now is the time to invest in the digital branch. If you have kicked around your “old” online banking or mobile product long enough, there are newer vendors and plenty of options for financial institutions considering a change. The speed at which these vendors are providing changes and updates to match the speed of the consumer is impressive. It’s time for financial institutions to understand the positive return of an investment in digital channels. With millennial and Gen Z customers continuing to be the fastest growing segment of the financial services market, the progression of your online, mobile, and connected technology can help your digital experience to be one of your biggest engines for new account growth.