Banks scrambling to meet customers' demands for more mobile banking
July 15, 2011
Consumers who are using their smartphones to check the balances of their savings accounts or checking account or using a mobile web browser to check current mortgage rates may soon be able to conduct an even wider range of banking activities on their mobile devices.
A recent study by Luth Research found that 19 percent of all cell phone users are using their phones to bank--whether it's to check activity on their money market account or to compare refinance rates.
That number is expected to grow to 22 percent in the next year, and banks will be responding by rolling out new Web-based options and mobile banking applications. The Luth study said mobile Web-browser banking will grow from 11 percent to 14 percent and banking via apps will grow from 5.5 percent to 8.5 percent.
Phone banking sophistication increases
While it's not hard to picture people doing simple things, like transferring funds from their checking account to one of their savings accounts, on their mobile phone, some banks are offering up sophisticated new apps that allow more complex transactions, such as depositing a check by phone.
For instance earlier this year PNC Financial Services Group of Pittsburgh introduced a checking account deposit app that allows customers to take a picture of their check and deposit it from their phone. Many big banks, including JPMorgan Chase & Co., Bank of America and Citigroup, have all rolled out new apps that allow varying levels of banking capabilities.
Smaller banks adapt
Even smaller regional banks are hiring experts in online and mobile services to help develop new apps for their customers who want to bank by phone.
According to the Dayton Business Journal, banks don't expect mobile transactions to revolutionize banking and do away with the need for bank tellers and branch offices. Some people will still want to come into banks to check on such things as wire money, check their safety deposit box or open new accounts.
But financial institutions are also aware that their customers are increasingly using their smartphones for everyday transactions, and they don't want to be left behind and lose customers to other banks willing to accommodate those customers.
