Raddon, a Fiserv company and provider of research, analysis and strategic guidance to FIs, has published a report on consumer use of mobile banking and its impact on other banking channels.
The report, Raddon Research Insights: Grappling with Mobile Banking Engagement Issues, finds that mobile banking use has grown from 7 percent of all consumers in 2010 to 41 percent today.
The report outlines how FIs can segment customers based on frequency of mobile banking use in order to determine where to allocate funds and how to target their marketing efforts.
One-third (33 percent) of survey respondents reported that they use branch facilities less because they use a mobile banking service. However, nearly one-quarter (23 percent) said they use ATMs more due to their mobile banking use, and 38 percent said they also use an online banking service more.
“When a consumer adopts mobile banking the assumption has been that they will be less costly to serve because they visit the branch less, but that is an oversimplified equation,” Raddon VP of research Bill Handel said in the release. “Mobile banking drives increased use of services like online banking and ATMs. This is positive from an engagement perspective, yet it leaves financial institutions grappling with how to best serve this ‘want-it-all’ consumer. The key is for financial institutions to hone in on the value of the overall customer relationship to make sure they are delivering the appropriate levels of service and not over or under-investing in technology.”
Data in the Raddon study was gathered from 2,343 online surveys conducted in 2016.
Download a free executive summary of the report.