Banking / Finance

Mobile banking’s impact on revenues and attrition is astounding

29th Jan `16, 02:06 PM in Banking / Finance

Why promoting mobile banking adoption is so important Simply offering mobile banking to customers and members is not…

BDMS
Guest Contributor
 

Why promoting mobile banking adoption is so important

Simply offering mobile banking to customers and members is not enough. It is not like in the movie Field of Dreams where the ongoing theme was, “If you build it, they will come.” Ongoing marketing around the consumer benefits of mobile banking is required if financial institutions want to grow adoption and engagement.

The potential benefits to banks and credit unions? Based on a 30% adoption rate and incremental gains found in the study, Fiserv projected one-year returns for the credit unions and banks that participated in the study.

On average, a credit union could pick up an extra $1.6 million a year in incremental revenue, along with the interchange fees from up to $8 million more a year in incremental point-of-sale purchases. At the same time, it could cut member attrition by up to 20%.

On average, a bank could gain up to $2 million a year in incremental revenue, along with the interchange fees from up to $38 million more a year in incremental point-of-sale purchases. And banks could reduce customer attrition by up to 12%.

These revenue benefits don’t even take into account that credit unions and banks alike could achieve significant cost savings from decreased branch traffic.

 

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