Mobile services, the future cash machine of banks
The recent acquisition of Groupama Banque by Orange is, if it still had to be proven, highly strategic. And for good reason. The number of regular users of mobile banking services continues to increase, and is expected to double in five years (from 800 million in 2014 to 1.8 billion users in 2019). Already today, the largest banking transactions go through the mobile channel, as the study reveals KPMG “Mobile Banking 2015”.
Faced with this observation, and given the importance accorded to mobile services by certain categories of clientele (in particular young people aged 35-40, with strong purchasing power and financially active), banking institutions are investing massively in their mobile banking services. Some even go so far as to develop their new services solely for mobile, to the detriment of their traditional service offering.. This is the case, for example, of Jibun Bank in Japan, which has completely focused its activity on mobile, shows the study of the consulting firm.
The end of traditional banking services?
Industry experts, however, are delaying this craze, ensuring that mobile services will not cannibalize traditional banking activity over time. They should find their place in addition to a traditional banking offer, allowing banks to achieve their cost reduction objectives and rethink their establishment strategy. Physical agencies could indeed become large “hubs” located in densely populated areas, with mobile services making it possible to interact remotely with customers on a daily basis, explain the study’s authors.
Mobile banking services, designed to be fragmented, can be combined with other application functionalities, and lay the foundations for a new, more global customer experience, also made possible by the development of wearables, like smartwatches.
The first players who entered this sector, in 2010 in Great Britain, were not mistaken: the first mobile services developed were only financial services, making it possible to offer a consumer credit offer to a customer. in the process of paying a large bill, for example, this is referred to as a “contextualized offer”.
Banks are therefore faced with security issues that have never been seen before: reconciling customer expectations, in terms of speed and responsiveness of the service, with security requirements and legislative constraints (securing transactions, authenticating the terminal and user, etc.).
Added to this is the fact that the mobile terminal can itself become a hostile environment, depending on the applications installed by the user. It is therefore necessary for banks to change their technical architecture to maintain a good level of protection of their data, underlines KPMG.
Faced with all the possibilities offered by these mobile services, traditional players today find themselves in competition with new players, with substantial financial resources and subject to fewer legal constraints. Despite this, customers still prefer the services offered by the banks themselves, which are considered more secure.
- 1.8 billion mobile banking users by 2019
The mobile banking user has 36.1 years on average (he is 10 years younger than the user of traditional banking services)
For 16% of clients, having an adapted mobile banking offer is a reason to change bank (25% for the youngest)
- 38% of bank customers are users of a mobile banking service in Europe
The mobile transaction cost is 2 times lower than on the web, and 43 times weaker than in an agency.
Methodology: To carry out its study, KPMG relied on data from the UBS Evidence Lab, as well as on various studies carried out by actors such as Juniper Research, specializing in studies concerning digital and online marketing.
In the news: Orange will open a 100% mobile bank