Consumer Appetites in Mobile Innovation

  • Share:
technology

Consumer Appetites in Mobile Innovation

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. Identifying Marijuana-Related Businesses
  2. Cut Through the Noise and Deliver Value Members Want
  3. 3 Key Factors for Creating Good Content
  4. A Content Management System Will Make Your Life Easier
  5. Preparing a Transparency Communication Plan
  6. Enterprise Risk Management — Where to Start
  7. Why You Need ERM in Your Strategic Planning
  8. Credit Unions Could Replace Predatory Lenders
  9. Just How Distracted Are Consumers?
  10. Are You Properly Rewarding Your CEO?
  11. Opportunities and Risks of Banking for Marijuana-Related Businesses
  12. The Quickest Way to Understand Enterprise Risk Management (ERM)
  13. The Easiest Way to Deliver Content for Employee Development
  14. What Borrowers Wished Credit Unions Knew
  15. 5 Things Credit Unions Can Learn from Cyber Attacks
  16. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  17. Consumer Attitudes Toward Digital Advertising
  18. Are You Ready to Adopt a Continuous Performance Management System?
  19. Experience Company Growth and Discovery with Employee-Driven Communication
  20. Should You Still Be Concerned about ADA Website Compliance?
  21. Omnichannel Delivery: Banking Based On Members
  22. Preparing for Compensation Transparency
  23. The Member Service Experience
  24. Become a Tax Resource for Members
  25. Learning Management Systems: What Credit Unions Should Consider
  26. Building a Website with the User in Mind
  27. Is Your Credit Union Supported by the Four Pillars of Digital Banking?
  28. Don't Get Snagged on ADA Compliance Requirements
  29. 2 Big FinTech Goals for Credit Unions
  30. How Useful Are Member Personas for Credit Union Marketing Teams?
  31. Bankers associations’ opposition to mergers does a disservice to member banks and to consumers
  32. The Quest for a One-Stop Shop Financial App
  33. Popular DDoS Mitigation Methods in 2019
  34. Credit Unions Have an Opportunity to Help Their Members Through Tax Season
  35. What's Hot in Performance Management Technology
  36. The Planning Process - Improved
  37. The Role of HR and Hiring Managers in the Candidate Experience
  38. Anticipating Change with a Succession Plan
  39. Credit Union Compensation: Philosophy or Strategy?
  40. Americans' Lack of Financial Literacy Is an Opportunity for Credit Unions
  41. Volunteer and Young Board Members Need Development
  42. The Performance Management Conundrum: Structure vs. Creativity
  43. Your Social Media Accounts Deserve Quality Content
  44. The Quickest Way to Find the Right (and Safest) CMS
  45. 7 Tax Changes Your Members Need to Know About
  46. Keep content relevant, short, iterative and engaging
  47. Americans Trust Their Financial Institutions for Tax Advice
  48. 3 Website Design Trends for 2019
  49. Content Marketing: Well Worth the Effort
  50. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  51. People Analytics: Bringing HR and Data Together
  52. Consumer Appetites in Mobile Innovation
  53. Why HR Should Take Advantage of Employee Self Service
  54. Continuous Performance Management is Disrupting HR
  55. Is Your Executive Compensation Still Appealing?
  56. Do You Know Why Payday Loans Are Used so Much?
  57. What Credit Unions Should Do with Ambiguous ADA Standards
  58. 3 Succession Plans Your Credit Union Needs
  59. Shifts and Trends to Know About in E-Learning
  60. Content, Tools, and Channels to Capture Consumer Attention
  61. The Importance of Creating Quality Content
  62. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  63. 5 Guideposts to Measure Your Brand Promise Against
  64. 6 Factors for Choosing the Right ESS System
  65. Why You Should Invest in an Applicant Tracking System
  66. Selling Payments and Wealth Management Services
  67. The Website Audit Your Credit Union Needs
  68. Build Up Membership Through Supportive Savings Programs
  69. The Best Compliance Training with New Topics You Will Need
  70. The Process of Crafting a Relatable, Moving Brand Story
  71. Achieving the Golden “Narrative Transport” in Brand Storytelling
  72. You Know You Need an LMS — Now What?
  73. Prioritizing the Credit Union Employee Experience
  74. Optimizing Websites for Voice: What You Need to Know
  75. Wanted: Apps for Clarification and Simplification
  76. How to Identify What You Want in an ESS
  77. A Simple Way to Unify Your Marketing Efforts
  78. Serving the Underbanked and Millennials
  79. Leverage the Resources of Trusted Experts for Tax Season 2019
  80. Remaining a Player in the New Home-Buying Experience
  81. 4 Steps to Increased Social Media ROI
  82. Is Your CMS the Right Fit?
  83. Predict the Future of Mortgage Lending with Analytics
  84. Don't Undervalue Your Brand Promise
  85. The Credit Union Advantage for the Digital Customer
  86. Three ways to up your social media game
  87. Making Sure You Have the Right Leaders in the Right Seats
  88. The Dream Team for Successful Online Customer Interactions
  89. You Might Already Have the Solution to Your Current Talent Competency Gap
  90. Conversational Commerce and the Rise of the Chatbot
  91. Are You Missing Out on the Power of Video?
  92. Empowering Employees and HR with the Latest Technology
  93. Keeping Up with Digital Lending Convenience
  94. Caution: Customers Don't Always Ask for What They Want
  95. The Secret to Future-Proofing Your Organization
  96. Common Mistakes in Compliance
  97. Identify how chatbots will help you
  98. Prepare for integration
  99. Are Your Landing Pages up to Snuff?
  100. How Credit Unions Can Formalize the Branding Process
  101. Three Ways to Enhance Compensation Strategy for an Age-diverse Workforce
  102. What the C-Suite Wants out of Social Media
  103. Credit Unions Can Compete with Shadow Banks
  104. How to Generate Content with Fewer Resources
  105. 3 Factors Impacting Credit Union Compensation Plans
  106. Don't Underestimate the Power of Financial Education
  107. Underestimate the Onboarding Process at Your Peril
  108. If Your Site Isn't Mobile Optimized, You're Losing Out
  109. How Credit Unions Can Embrace Storytelling in Marketing
  110. 3 Brand Promises Credit Unions Can Learn From
  111. Leveraging Social Media for Member Engagement
  112. Protect Your Credit Union with a Website Accessibility Response Plan
  113. Do you need a new compensation strategy for multigenerational staff?
  114. Finding the Best Platform for HR Technology
  115. What others are doing

Related Trends

  1. Conversational Commerce and the Rise of the Chatbot
  2. Identify how chatbots will help you
  3. Prepare for integration
  4. Remaining a Player in the New Home-Buying Experience
  5. Predict the Future of Mortgage Lending with Analytics
  6. Is Your Credit Union Supported by the Four Pillars of Digital Banking?
  7. Omnichannel Delivery: Banking Based On Members
  8. The Quickest Way to Find the Right (and Safest) CMS
  9. A Content Management System Will Make Your Life Easier
  10. Credit Unions Could Replace Predatory Lenders
  11. 5 Things Credit Unions Can Learn from Cyber Attacks
  12. Do You Know Why Payday Loans Are Used so Much?
  13. What Borrowers Wished Credit Unions Knew
  14. Serving the Underbanked and Millennials
  15. Should You Still Be Concerned about ADA Website Compliance?
  16. Don't Get Snagged on ADA Compliance Requirements
  17. Consumer Appetites in Mobile Innovation
  18. The Quest for a One-Stop Shop Financial App
  19. Wanted: Apps for Clarification and Simplification
  20. What Credit Unions Should Do with Ambiguous ADA Standards
  21. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  22. Building a Website with the User in Mind
  23. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  24. 3 Website Design Trends for 2019
  25. The Credit Union Advantage for the Digital Customer
  26. Optimizing Websites for Voice: What You Need to Know
  27. Is Your CMS the Right Fit?
  28. 2 Big FinTech Goals for Credit Unions
  29. Caution: Customers Don't Always Ask for What They Want
  30. The Website Audit Your Credit Union Needs
  31. Keeping Up with Digital Lending Convenience
  32. Protect Your Credit Union with a Website Accessibility Response Plan
  33. Credit Unions Can Compete with Shadow Banks
  34. Popular DDoS Mitigation Methods in 2019

Industry insights
to your inbox!

Subscribe