Mobile banking services are helping banks retain customers and glean more revenue from them, according to a study.
Banking software company Fiserv carried out a year-long study of 17 finance companies to work out the return on their mobile investments. The research involved 67,000 mobile banking users.
The research found that customers who made use of mobile banking are more likely to take up more of the products offered by their bank, using an average of 2.3 compared with 1.3 for people who only use the branch.
It also found that mobile banking users carry out more transactions, which creates more revenue for the banks.
In revenue terms the study revealed that mobile banking users generate more revenue for banks than those who don’t use mobile banking. Banks made 72% more revenue from mobile users than from branch-only customers, according to the report.
The report added that non-mobile banking users are more than twice as likely as mobile banking users to leave the bank.
“The financial institutions in this study are seeing tangible revenue from mobile banking,” said Matt Wilcox, senior vice president of marketing strategy and innovation at Fiserv. “Marketing mobile banking and highlighting how it can help consumers keep pace with the speed of life is absolutely essential if financial institutions want to grow adoption and use of the service, and reap the benefits of their mobile investment.”
Read more about mobile banking
- More and more people in the UK are banking on their smartphones, but more than a third still visit branches regularly
- A quarter of consumers in Europe are active users of mobile banking, but 32% still don’t believe it is safe and secure
- With a quarter of the world’s population expected to use their mobiles to bank by 2019, traditional retail banks need to get their strategies right
Recent research from Forrester has found that UK citizens are using a mix of channels to interact with their banks and make transactions, with more than one-third of those surveyed still regularly visiting a bank branch.
According to its research, which involved 3,000 people, 28% use mobile banking.
However, an online survey of more than 2,000 UK adults by YouGov, commissioned by ACI Worldwide, found that digital disruption in UK banking might be slower than had been thought.
The research found that 82% of consumers never use mobile payment services such as PayM or Pingit during an average month, and 59% never use mobile banking.