10 – Customers and Members Deserve It. Community financial institutions have the ability to out innovate large banks. Local consumers and businesses deserve to have the ability to choose a community bank or credit union. Consumers thrive on service and relationships, and these are unique characteristics of a community financial organization. Don’t be intimidated by the big banks, out-innovate them when it comes to the mobile channel and combine it with a great relationship and you have a winning combination. Take risks and fail fast, as this is the new mantra of the digital age.
9 – You Can Innovate Rapidly and Update Frequently. New ideas in the mobile channel can be developed and made available to end-users fast. This is not the Internet, where vendors innovate at a snails pace. This is mobile and new features can and are being developed very rapidly. As a community credit union or bank, you can update your mobile app frequently and drive engagement. On average, a credit union or bank sees a 10% lift in active mobile users within 30-45 days of launching a new feature. Shoot for doing 3-4 updates a year and keep engagement high.
8 – You Can Generate a Return. Some new features like expedited Picture Pay and real-time person to person payments, can generate fee revenue. Consumers and businesses are willing to pay for mobile convenience. For Picture Pay, where an end-user can take a picture of a bill and then expedite the payment, they are willing to pay a fee- 3% of the total payment volume are expedited payments. Mobile can and does provide convenience, so banks and credit unions can charge for it.
7 – You Can Be Seen As Innovative. A local $5 Billion bank in Texas is now seen as one of the most innovative in the USA. An executive at the bank was named one of the “Elite Eight” for providing a mobile banking app that out-innovated and out-shined all competitors, both local and national. This bank was recognized as being first to market with cool, innovative mobile solutions. And they now have a reputation for providing great technology solutions.
6 – You Can Cross Sell. The mobile channel can be used to cross sell other products and/or features within the mobile banking app as well as informing your business and consumer customer and members about who you are and what you do for your community. The ad space in an app can generate up to a 12%-15% “touch-through” rate. Mobile ads and messages are much more engaging than their Internet Banking counterparts and the stats prove that out. Whether you are featuring a high-interest savings account or CD or simply informing consumers and businesses about your community involvement, mobile ads engage end-users and can be used to help build a very solid ROI for the channel.
Stay tuned for Part II in the next few weeks…