Consumer Appetites in Mobile Innovation

  • Share:
technology

CUTrendScan

Consumers have more choices today than ever before. Whether it’s choosing where to shop, where to eat or where to bank, the modern consumer has no lack of options. In a consumer-driven environment, knowing how to anticipate and provide what they want is paramount for credit unions. Competitors, such as fintech companies, are establishing their brands by seizing on areas that traditional financial institutions are slow to move into, and big tech companies are now doing the same thing.

The idea of tech giants like Amazon and Google moving into the financial services field may seem like a boogeyman to financial institutions. However, the fact is that tech giants have been investing in financial products for years. Beyond Amazon Cash and Google Wallet, tech companies are primed for major disruptions to the US financial services sector. Globally, this disruption has already begun.

China’s massive e-commerce conglomerate, Alibaba, now holds the world’s largest money-market fund with more than 400 million users. Yet money-market funds are only one part of Alibaba affiliate Ant Financial’s success. The other is mobile payments, as Ant Financial is now ranked as the ninth-largest internet company in the world. The affiliate grew from humble origins out of Alibaba’s digital payments system Alipay but quickly dominated China’s financial services landscape with three divisions — the money market fund, a private credit platform, and e-commerce and mobile payments. Mobile payments have gained a solid foothold in China, and Alipay now claims more than 870 million customers, with a third of those outside China.

This is merely one example, albeit a big one, of the disruption that a tech giant could have in financial services. Credit unions need to ensure their technology is not only robust but also convenient and easy to use.

Consumer appetites are changing

It’s common for website developers to repeat the mantra of “mobile-first design,” but it seems that concept is finally being applied to financial services as well. Consumers continue to value branches and human interaction, and an omnichannel approach in general, but if there is a clear standout, it’s mobile. According to PwC’s 2018 Digital Banking Consumer Survey, preferences have made a significant shift in the last year:

Analysts have also found that mobile-dominant users show greater loyalty than desktop-dominant users—when their needs and wants are met. After all, an app staying on a user’s smartphone home screen is much more visible than bookmarking a website. According to S&P Market Intelligence, consumers also access mobile banking apps quite frequently, with more than 75 percent opening up the app more than once per week.

Another study conducted by Citi in 2018 found that banking apps are the third most-used app for most adults, with 31 percent of survey takers indicating they use banking apps more than any other app on their phone. Social media apps still enjoy the top ranking by a wide margin (55 percent), with weather apps following behind in second (33 percent).

Key features of a banking app for consumers still include basic functions such as checking an account balance, reviewing transactions and transferring money, but consumers are also increasingly interested in new security features such as biometrics, the ability to turn off a card through their app, or viewing account balances without having to go through a time-consuming login process.  

Additionally, payments are a key challenge for banks, especially when keeping up with fintech firms. In a study by ING International, US consumers were among the most likely to go beyond their primary bank or credit union for money services. US consumers also have a high preference for using money-transferring services and peer-to-peer payments outside of their primary financial institution.

Consumers, especially millennials but also older generations as well, value the time they save by using a mobile app over going to a physical branch or even using their desktop computer. According to the Citi survey, respondents say they save on average 45 minutes a month using a mobile app as opposed to other venues. The majority (75 percent) of respondents do mobile banking at home on the couch, 47 percent while in bed, and 36 percent while at work. Mobile banking is so convenient and fast that 19 percent of millennials report checking their finances while on a date.

Capitalizing on convenience is driving innovation in mobile financial services. More than just streamlining login processes, banks and credit unions are interested in widening the scope of what their banking app includes to meet consumers’ changing habits and desires. Financial institutions like smaller credit unions can still keep up with these evolutions by being prepared to update their mobile offerings when new trends crop up. This positions the credit union as a “fast follower” and helps bridge the gap.

  • Share:


« Return to "Trends"
TrendScan logo
<< Back to Articles

Latest Trends

  1. Opportunities and Risks of Banking for Marijuana-Related Businesses
  2. Experience Company Growth and Discovery with Employee-Driven Communication
  3. The Member Service Experience
  4. Become a Tax Resource for Members
  5. Should You Still Be Concerned about ADA Website Compliance?
  6. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  7. Anticipating Change with a Succession Plan
  8. Don't Get Snagged on ADA Compliance Requirements
  9. The Performance Management Conundrum: Structure vs. Creativity
  10. Are You Ready to Adopt a Continuous Performance Management System?
  11. The Planning Process - Improved
  12. Building a Website with the User in Mind
  13. Is Your Executive Compensation Still Appealing?
  14. What Credit Unions Should Do with Ambiguous ADA Standards
  15. Content Marketing: Well Worth the Effort
  16. Your Social Media Accounts Deserve Quality Content
  17. Continuous Performance Management is Disrupting HR
  18. 7 Tax Changes Your Members Need to Know About
  19. Consumer Attitudes Toward Digital Advertising
  20. 5 Things Credit Unions Can Learn from Cyber Attacks
  21. The Website Audit Your Credit Union Needs
  22. Are You Properly Rewarding Your CEO?
  23. The Quest for a One-Stop Shop Financial App
  24. 3 Succession Plans Your Credit Union Needs
  25. Credit Unions Could Replace Predatory Lenders
  26. The Importance of Creating Quality Content
  27. Americans’ Lack of Financial Literacy Is an Opportunity for Credit Unions
  28. Optimizing Websites for Voice: What You Need to Know
  29. What’s Hot in Performance Management Technology
  30. Credit Union Compensation: Philosophy or Strategy?
  31. Why HR Should Take Advantage of Employee Self Service
  32. Volunteer and Young Board Members Need Development
  33. Build Up Membership Through Supportive Savings Programs
  34. Consumer Appetites in Mobile Innovation
  35. 3 Website Design Trends for 2019
  36. Selling Payments and Wealth Management Services
  37. Wanted: Apps for Clarification and Simplification
  38. How Useful Are Member Personas for Credit Union Marketing Teams?
  39. Learning Management Systems: What Credit Unions Should Consider
  40. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  41. Shifts and Trends to Know About in E-Learning
  42. What Borrowers Wished Credit Unions Knew
  43. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  44. 3 Key Factors for Creating Good Content
  45. People Analytics: Bringing HR and Data Together
  46. Prioritizing the Credit Union Employee Experience
  47. Cut Through the Noise and Deliver Value Members Want
  48. The Credit Union Advantage for the Digital Customer
  49. Popular DDoS Mitigation Methods in 2019
  50. 4 Steps to Increased Social Media ROI
  51. Is Your CMS the Right Fit?
  52. Do You Know Why Payday Loans Are Used so Much?
  53. What the C-Suite Wants out of Social Media
  54. How Credit Unions Can Formalize the Branding Process
  55. Making Sure You Have the Right Leaders in the Right Seats
  56. Keeping Up with Digital Lending Convenience
  57. Just How Distracted Are Consumers?
  58. A Simple Way to Unify Your Marketing Efforts
  59. How to Generate Content with Fewer Resources
  60. How to Identify What You Want in an ESS
  61. Are You Missing Out on the Power of Video?
  62. Empowering Employees and HR with the Latest Technology
  63. The Dream Team for Successful Online Customer Interactions
  64. 2 Big FinTech Goals for Credit Unions
  65. Are Your Landing Pages up to Snuff?
  66. How Credit Unions Can Embrace Storytelling in Marketing
  67. Credit Unions Can Complete with Shadow Banks
  68. 6 Factors for Choosing the Right ESS System
  69. Caution: Customers Don't Always Ask for What They Want
  70. If Your Site Isn't Mobile Optimized, You're Losing Out
  71. 5 Guideposts to Measure Your Brand Promise Against
  72. Protect Your Credit Union with a Website Accessibility Response Plan
  73. Preparing a Transparency Communication Plan
  74. 3 Factors Impacting Credit Union Compensation Plans
  75. Don't Underestimate the Power of Financial Education
  76. Preparing for Compensation Transparency
  77. Don't Undervalue Your Brand Promise
  78. The Quickest Way to Understand Enterprise Risk Management (ERM)
  79. Leveraging Social Media for Member Engagement
  80. Finding the Best Platform for HR Technology
  81. The Role of HR and Hiring Managers in the Candidate Experience
  82. Why You Should Invest in an Applicant Tracking System
  83. Content, Tools, and Channels to Capture Consumer Attention
  84. Underestimate the Onboarding Process at Your Peril
  85. The Best Compliance Training with New Topics You Will Need
  86. 3 Brand Promises Credit Unions Can Learn From
  87. Identifying Marijuana-Related Businesses
  88. Serving the Underbanked and Millennials
  89. Why You Need ERM in Your Strategic Planning
  90. A Content Management System Will Make Your Life Easier
  91. Enterprise Risk Management — Where to Start
  92. The Quickest Way to Find the Right (and Safest) CMS
  93. Bankers associations’ opposition to mergers does a disservice to member banks and to consumers

Related Trends

  1. The Quickest Way to Find the Right (and Safest) CMS
  2. A Content Management System Will Make Your Life Easier
  3. Credit Unions Could Replace Predatory Lenders
  4. 5 Things Credit Unions Can Learn from Cyber Attacks
  5. Do You Know Why Payday Loans Are Used so Much?
  6. What Borrowers Wished Credit Unions Knew
  7. Serving the Underbanked and Millennials
  8. Should You Still Be Concerned about ADA Website Compliance?
  9. Don't Get Snagged on ADA Compliance Requirements
  10. Consumer Appetites in Mobile Innovation
  11. The Quest for a One-Stop Shop Financial App
  12. Wanted: Apps for Clarification and Simplification
  13. What Credit Unions Should Do with Ambiguous ADA Standards
  14. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  15. Building a Website with the User in Mind
  16. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  17. 3 Website Design Trends for 2019
  18. The Credit Union Advantage for the Digital Customer
  19. Optimizing Websites for Voice: What You Need to Know
  20. Is Your CMS the Right Fit?
  21. 2 Big FinTech Goals for Credit Unions
  22. Caution: Customers Don't Always Ask for What They Want
  23. The Website Audit Your Credit Union Needs
  24. Keeping Up with Digital Lending Convenience
  25. Protect Your Credit Union with a Website Accessibility Response Plan
  26. Credit Unions Can Complete with Shadow Banks
  27. Popular DDoS Mitigation Methods in 2019

Industry insights
to your inbox!

Subscribe