Not All Mobile Banking Apps Are Created Equal

While retail banking customers now prefer the mobile channel to all other channels for interaction, not all mobile banking apps are created equal, according to a study from J.D. Power.

By Jim Marous, Co-Publisher of The Financial Brand and Owner/Publisher of the Digital Banking Report

As consumers become more comfortable with digital channels, there is a greater demand for mobile banking experiences that replicate those from non-financial companies like major retailers, technology companies, airlines and hotel chains. Consumers want an appealing design, ease of use and navigation, the ability to personalize the experience and real-time alerts for important updates.

In an effort to satisfy increased customer demands and move more customers to lower cost channels, many banks and credit unions have significantly increased their investment in digital channels. The investment has resulted in greater mobile banking usage across demographic segments according to J.D. Power, with 31% of customers using their bank’s mobile banking app. Usage is even higher among younger customers.

For maximum benefit, not only do customers need to use mobile banking – they need to enjoy the experience. To reinforce the importance of mobile banking experience, J.D. Power found that better digital banking applications have been a primary driver in better overall retail banking satisfaction scores. This correlation has helped the largest financial institutions the most because of their ability to invest more aggressively in digital channels.

Another benefit of high mobile banking satisfaction is that satisfied users are also advocates. These highly satisfied mobile application users are likely to recommend the app (81%), are less likely to switch providers (62%) and are more likely to buy additional products and services (55%).

Satisfaction Driven by Five Key Attributes

The J.D. Power 2017 U.S. Banking App Satisfaction Study provides a great perspective on how an organization can differentiate a mobile banking application to drive satisfaction. The independent attributes in the Mobile App Satisfaction Index include (in order of importance), ease of navigation, appearance, range of services, clarity of information and availability of key information.

By identifying what content and tools are most desired by customers, banks and credit unions can prioritize app enhancements. The study found that ease of use is the key differentiator among top-performing mobile apps. The components of ease of use include the login process, access to account information, and overall ease of managing the account. Possible enhancements include:

• Use of biometrics to login with clear access to input login credentials
• Providing key information front and center (balances, rates, etc.). Also allow deeper access to information such as statements
• Ability to easily make deposits, manage alerts, P2P payments and transfers

Competition Between the Best Mobile Banking Apps is Tight

Capital One ranked the highest in overall mobile banking application satisfaction with a score of 870 (on a 1,000-point scale) with Bank of America ...

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