According to industry sources, current account transactions via branches are set to fall by more than 40% between 2015 and 2020, whilst transactions via mobile devices over the same period will rise by 261%. So what does this mean for attracting and on-boarding new customers? PBF’s Head of Optimisation Guillaume Perton looks at the rise of mobile and considers the implications for deposit raising.
The decline of traditional branch-based banking is well documented in the UK press. According to industry predictions* the rate of decline is accelerating, with the number of branch-based current account transactions falling from 427m in 2015 to 268m by 2020. Similarly, telephone banking appears to be falling out of favour, with the volume of current account transactions over the phone expected to decline by 10m over the same period.
* Source: CACI, Access to Banking, The British Bankers Association Annual retail Banking Conference 2015
Clearly the internet is becoming the medium of choice for our day-to-day interaction with banks. That said, whilst the volume of internet transactions has grown steadily every year over the last ten years, even PC-based transactions are starting to decline.
The rising star in our web-based world is mobile. Whilst transactions via mobile were on a par with telephone-based transactions in 2010 at 85m, by 2020 it is forecast there will be over 2.3 billion mobile transactions, more than 70% of all transactions.
At PBF we are seeing this transition through the customer on-boarding we manage on behalf of banks. Over the last two years we’ve seen mobile-based savings deposits rise to over 30% of all completed transactions. And on top of this there are mobile interactions where a customer researches the product on a phone or tablet and then completes the purchase on a laptop.
So what does this mean for banks looking to attract new customers and savings deposits? At the very least it means your site needs to work properly on a mobile device. Ideally the site should be “responsive” – meaning each page adjusts for the screen size it’s being viewed on.
But it’s also essential that mobile customers experience a clear and straightforward journey from landing on your site through to completing the application form and funding their account. It requires expertise to make this work – it’s one thing making a good application form for a desktop but a much bigger challenge ensuring the same form works just as well on a small screen.
Having on-boarded over 140,000 new customers for banks, we’ve learned a thing or two about what does and doesn’t work on mobile. Even seemingly minor changes to enhance the user experience can increase conversion rates by a few percent, which can equate to tens of millions of £ deposits over time. All the platforms we create are responsive – working equally well on mobile as well as desktop devices – and it’s my role to monitor how consumers interact with the sites and continually improve the user experience to ensure banks raise the deposits they need.
Like it or not, the mobile banking revolution is well under way. If you haven’t looked at how you interact with customers on mobile yet, then consider this: You may be missing out on 70% of possible customer transactions in less than three years’ time!