3 WAYS TO IMPROVE THE MOBILE BANKING EXPERIENCE
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A WNS PERSPECTIVE 3 WAYS TO IMPROVE THE MOBILE
BANKING EXPERIENCE
3 WAYS TO IMPROVE THE MOBILE
BANKING EXPERIENCE
A WNS PERSPECTIVE
Over the past decade, mobile that they don't lose customers. This Banks need to recognize this
banking technology has established has meant offering apps with basic, ground reality as their window of
itself as a critical part of all easy-to-use functions such as innovation to drive the next phase of
customer-focused banking checking account balances, viewing growth. Users are now looking
strategies. Research shows that transaction histories and paying beyond the basic informative
mobile banking apps are not only bills. Some banks offer more features to assess whether the
enabling enhanced customer loyalty advanced transactional features mobile banking app can truly
and advocacy, but are helping banks such as remote deposit capture and replace a trip to the bank.
significantly reduce transaction peer-to-peer payments.3 Though
Also, most of the early adoption
costs as well.1 this shallow approach helped banks
was driven by millennials and other
witness a surge in mobile banking
Apps are also becoming an tech-savvy customers. Banks will
adoption initially, diminishing
imperative for banks to beat have to drive further growth in
returns in recurrent usage and
disruptive competition from tech adoption by addressing the fears
stickiness have already set in.
giants and FinTech startups and concerns of the older and
entering the payments and peer-to- A 2016 survey by Bain & Co., more conservative demographic.
peer lending space. No wonder covering 137,000 consumers Banks thus need to look at
retail banks cite customer across 21 countries, has confirmed deepening the mobile banking
acquisition and retention, and that the rate of growth in mobile experience and assessing how it
disruptive competition as the banking transactions is now leveling compares to a person-to-person
primary reasons for offering mobile off, with China actually seeing a interaction at the branch.
banking apps to their customers.2 decrease in the number of
Here are three ways in which banks
interactions per customer.4
The initial focus for banks, however, can re-define the mobile banking
has been on entering the digital fray This phenomenon is the result of user experience to unlock the next
with a mobile app of their own so saturation in user experience. level of value.
1
http://www.bain.com/publications/articles/customer-loyalty-in-retail-banking-2016.aspx
2
https://thefinancialbrand.com/69892/mobile-banking-payments-trends/
3
ibid
4
ibid
COPYRIGHT © 2018 WNS GLOBAL SERVICES | WNS.COM 01
Ways to Enhance Mobile Banking
Road to Analytics & Open
Simplification AI-driven Banking Banking
Road to Simplification
According to the Bain & Co. global simplifying and streamlining their one transaction to the user – for
survey, millennials are calling banks complex portfolio of offerings to example, loan approval – may
for support 1.7 times more than reduce the number of options involve multiple departments
older customers aged 55 years and customers need to choose from. and workflows. When porting
above.5 Most of these calls are for these offerings to the digital
help with managing their accounts Another example of simplification channel, however, banks need
and resolving issues. This proves is transactions — customers to present each user scenario
that despite being tech-savvy, usually have to scroll through as one seamless flow.
younger customers are finding it lengthy transaction reports to
difficult to figure out complex search for one specific For example, a leading bank in
banking products. transaction. Banking apps with the U.S., one of the few to offer
higher ratings are allowing loan applications on mobile,
Digital-only banks, on the other customers to search for individual recently launched its digital
hand, offer few, simple to transactions using natural language mortgage service to guide
understand products, and have been commands and filters. customers seamlessly through
successful in attracting customers the loan application process
who prefer transparent offerings. Internal banking processes are on its mobile app.
Leading banks are looking at complex, and what may appear as
5
http://www.bain.com/infographics/bank-loyalty-2016/
COPYRIGHT © 2018 WNS GLOBAL SERVICES | WNS.COM 02Hi
Welcome to your bank, my
name is RC, how can I help
you today?
Where is the nearest
ATM?
Do you want me to look for the
nearest atm in your current
location, or do you want me to
find in a different area?
Current
Analytics & AI-driven Banking
One of the key reasons why mobile savings, credit management and for specific transactions or make
apps have been so successful investments through their apps. peer-to-peer payments.
across industries is their potential A lot of these features leverage
to drive personalization. They offer integrated virtual assistants with Banks lose anywhere between
banks customer-specific data and natural language capabilities. 25 and 51 percent of secondary
usage patterns, opening the door product and investment sales
for in-context service, assistance For instance, in 2016, a North to competing banks and
and offerings. American bank launched its mobile FinTech firms.6 And in close to
app-integrated virtual assistant to half such cases, customers
Banks are now leveraging Artificial help customers perform day-to-day simply receive better-timed
Intelligence (AI), advanced and transactions, save money and offers from competitors.
predictive analytics, machine make investment decisions. Banks can leverage AI and
learning and natural language Another retail bank in the U.S. was predictive analytics to make
processing to offer features one of the first to enable voice- personalized product offers within
such as bill payment reminders, activated banking. Using the iPhone the mobile app, keeping in mind
spend analysis and even OS, customers can simply ask their the customer's financial history
recommendations on monthly app to check their balance, search and purchase behavior.
6
http://www.bain.com/publications/articles/evolving-the-customer-experience-in-banking.aspx
COPYRIGHT © 2018 WNS GLOBAL SERVICES | WNS.COM 03Open Banking
Customers now want seamless phone number. However, only 14 features. Focused promotions
transactions and information across percent allow payments to an and incentives to use mobile
all their accounts and investments, e-mail address and two percent banking apps for certain
spurred on by institution-agnostic using social media.7 The last two transactions are other means
offerings such as digital wallets. categories are where banks face the of driving greater adoption.
Open banking enables seamless most competition from technology
Continued focus on ensuring
transactions across accounts, and platforms and digital wallets
simplicity and ease of user
gives customers a comprehensive allowing peer-to-peer payments.
experience will become even more
view of their spending. Such apps
Despite the slowdown in growth, important as complex features are
also offer opportunities for services
the business value of mobile added. According to Mapa Research,
such as instant loan approvals, as
banking is still intact. According around one-third of the leading
the most pertinent information
to a 2016 U.S. Retail Banking mobile banking apps are phasing
regarding the customer's existing
Satisfaction Survey, mobile banking out older functionality even as they
assets and loans would be available
users register up to 27 points higher add new ones, in a bid to streamline
in one place.
satisfaction scores than non-users.8 the overall user experience.10
The recently launched app of a Another study found that customers
Eventually, with open banking
Europe-based multinational bank is registered an increase of 11 percent
allowing any one bank to open
a good example of open banking. in their product holdings with a
up transactions in other bank
The app allows customers to sync bank within three months of
9 accounts, user experience will
all their accounts, get smart adopting mobile banking.
be the key determining factor in
insights on their spending, and even
As banks continue to broaden the driving customers to a specific
make international money transfers.
capabilities of their mobile apps, an mobile banking app.
One of the top features that increased focus on promoting these
customers look for in mobile features will be required to pave the
banking is the ability to make way for improved adoption. When As mobile banking
payments across channels with customers visit the branch, training
transactions taper
ease. More than 90 percent banks the front office staff to show
already allow consumers to make customers how they can complete off, banks have to
payments to an existing payee, and the same transaction through the innovate & enhance
around half allow immediate app can be a great way to introduce
their apps
payments to a new payee or mobile some of the more advanced
7
https://thefinancialbrand.com/40109/best-mobile-banking/
8
https://thefinancialbrand.com/58703/mobile-banking-satisfaction-growth/
9
https://www.fiserv.com/resources/Mobile-Adoption-White-Paper-January-2016.pdf
10
https://www.maparesearch.com/whats-happening-mobile-banking/
COPYRIGHT © 2018 WNS GLOBAL SERVICES | WNS.COM 04About WNS
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