Design Is New Differentiator In Mobile Banking
?? Jim Marous
Top 5 Retail Banking Influencer, Global Speaker, Podcast Host and Co-Publisher at The Financial Brand
As understanding of basic mobile banking applications increases and the differentiation between mobile banking apps becomes less defined, the importance of mobile design takes center stage. The key is to combine functionality with simplicity.
By Sandeep Sood, CEO, Monsoon Company
Ask people about their favorite apps, and you’ll get a slew of answers: Instagram, Yelp, and Google Maps. What you aren’t likely to hear is, “my bank’s app.”
A study from the Federal Reserve shows that there are untapped markets waiting for mobile banking. Millions of consumers are going to start banking on mobile in the next twelve months. But millions more aren’t interested.
Financial institutions have done a fairly good job at getting their applications onto their customer’s phones. They’ve done a far worse job at generating enthusiasm around their mobile offerings. A big reason for this lack of enthusiasm comes down to bad design: clunky UX, confusing UI, difficult logins, unattractive graphics and an overload of information frustrate many customers, and keep others away.
There’s no reason financial applications have to remain the ugly ducklings of the app marketplace. Thinking strategically about design – especially by adopting a human-centric approach, backed by rigorous testing and focused attention on individual users’ needs and experiences will satisfy the wants of existing consumers and bring some of the doubters on board.
Younger users and early adopters have come to expect a continuously evolving product, one that keeps up with the expanding capabilities of their mobile devices and which fulfills their desire for personalization, automation and financial education. In short, they want a mobile banking experience that’s easy intimate and quick, and tailored to the specifics of their lifestyle.
Many older users are just getting acquainted with mobile banking. And some still haven’t made the leap. Make a mobile app too complex, and you risk alienating or confusing less mobile-savvy users, those whose engagement with your mobile products is more limited in the first place.
Balancing innovation against ease of use in mobile app design is an ongoing challenge. It takes serious thinking about user needs and interactions backed by rigorous testing and research. It also means having the wherewithal to avoid common design mistakes that limit engagement and frustrate users. A frustrated user often turns into a lost customer, and those customers rarely return for a second experience.
Mobile Banking Growth Moderating
A revealing report from the Federal Reserve, titled Consumers and Mobile Financial Services 2015 highlights the vital importance of mobile banking while also pointing to significant lag between early adopters and habitual users.
The study shows that the adoption of mobile banking is growing in line with the purchase and use of smartphones.
In 2014, over half (52%) of smartphone users with bank accounts reported using mobile banking in the past year, up from 43% in 2011. A lot of that growth is very recent with more coming in the future as the last wave of consumers move to smartphones.
Fifteen percent of mobile banking users said that they adopted mobile banking in the last six months, and another 11% of consumers with mobile phones who do not currently use mobile banking said that they will ‘probably’ or ‘definitely’ use mobile banking in the following 12 months. The next year is going to see a wave of new users migrating to mobile banking.