Mobile Banking’s Impact on Revenues and Attrition Is Astounding

by Edward O'Brien 0

The penetration and use of mobile banking still has not reached full potential. In fact, an average financial institution can generate $2 million in revenues and reduce attrition by 15%.

Though increasing adoption rates seem to have settled the question of demand for mobile banking services, the ROI of mobile banking has proved more elusive. Mobile banking, which may not be perceived to produce direct revenue, must be evaluated by indirect results. Accordingly, Fiserv in conjunction with Raddon Financial Group studied mobile banking users, online users, and branch-only users, and compared their product usage, transaction frequency, attrition rates, and revenue generation.

The study found that mobile banking currently offers financial institutions significant ROI with the unrealized potential being in the millions for the average bank or credit union. The value was determined by comparing key attributes in the three months before and after consumers enrolled in mobile banking. The year-long aggregated analysis was conducted at select banks and credit unions using the Mobiliti™ banking and payments solution from Fiserv.

Banking customers are increasingly seeking the wide variety of features available with online – and increasingly – mobile banking. And with a convergence of these channels being delivered in new digital banking variants, an expanded array of features and benefits are available to banking customers. These features add to customers’ and members’ experience, creating a win/win situation for all. The result is often increased satisfaction and loyalty, reduced attrition, and potentially higher revenues and profitability.

Overview by Ed O’Brien, Director, Banking Channels, Advisory Service at Mercator Advisory Group

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