Fiserv, the provider of financial services tech solutions, recently published the results of a year-long study measuring ROI of mobile banking services and apps. Having surveyed eight credit unions, nine banks and data from 67,000 mobile banking users, the study finds that mobile banking adoption overall is associated with lower attrition, increased usage of products and transactions and higher revenue for institutions.
Once a consumer downloads a banking app, the average product holdings, which include loans, deposits, credit cards and mortgages, increases notably. The number of different product holdings increased 12% (2.3 products) following the adoption of mobile banking.
Average product holdings increase for mobile banking consumers
Transactions also increased, with 19% higher POS transactions per month among credit union members and 49% more POS card transactions among bank customers. ATM transactions and ACH transactions were also higher among mobile banking customers.
The decrease in potential branch visits among mobile banking customers has the potential to drive cost savings for institutions as simple transactions do not require the help of staff.
The simplicity and ease of use of mobile banking apps is also driving better consumer retention rates for credit unions. Attrition was 4.9% for mobile customers compared to 13.4% for those not enrolled in online channels by credit unions.
Mobile banking retention rates are higher
Mobile banking users generally generate more revenue than non-users, because they own several products and conduct a higher amount of transactions. For credit unions, mobile banking resulted in a 36% growth of revenue, whilst banks noted a jump of 72%, compared to branch-only customers.
Matt Wilcox, Senior VP, marketing strategy and innovation, Fiserv, explains:
“The financial institutions in this study are seeing tangible revenue from mobile banking. Marketing mobile banking and highlighting how it can help consumers keep pace with the speed of life is absolutely essential if financial institutions want to grow adoption and use of the service and reap the benefits of their mobile investment.”