Snippet: A significant percentage of US consumers flatly say that they are not interested in taking up mobile banking. Other channels do the job just fine, they say. That’s a problem.

A significant percentage of US consumers flatly say that they are not interested in taking up mobile banking. Other channels do the job just fine, they say. That’s a problem.

The US Federal Reserve Board says that only 38 percent of US account holders regularly bank using their mobile devices. Of account holders with smartphone users, that figure is higher, at 53 percent, but it has climbed only one percentage point annually for the last four years. Adoption has stalled half way to saturation.

The majority of non-users seem unimpressed by mobile banking as a channel (88 percent are content with the status quo; 78 percent see no value in changing their ways). Almost three quarters are held back by security concerns.

These figures are a worry for the industry.

Here’s why. According to Javelin Strategy & Research, the average cost of processing a mobile transaction is 10 cents, a PC-initiated transaction 20 cents, and an ATM transaction $1.25. Its study didn’t include branch interactions but, a few years back, Fiserv found that digital mobile and online transactions together averaged 17 cents against branch’s $4!

Mobile offers so much in potential new revenue streams but, as many have pointed out, you don’t actually need to make money on the mobile to significantly improve your bottom line. What you want to do first is make it a more compelling choice than older, more expensive channels.

Operating in the United States, we’ve observed first-hand the extent to which US financial institutions prioritize a low-friction digital user experience. Americans want to do their banking with the minimum of hassle and, spoiled for choice, many will change banks to get it. For our customers and other companies we talk to, the imperative is to develop, design and, yes, secure every aspect of mobile and online offerings with the customer at the center of everything.

Terms like “usability”, “consistency”, and “ubiquity” continue to inspire scores of reports from marquee names in banking and the consulting firms they employ. With some impressive exceptions, however, mobile offerings still fall short. Customer delight remains an elusive goal, WordArt in a PowerPoint presentation.

Until banks develop simple, secure mobile banking experiences rich with functionality, they will struggle to compete with their more visionary competitors.

Connecting, engaging, transacting with confidence

If you missed our 50-second explainer video focused on the Transakt-enabled user experience, check it out on YouTube. 

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Schalk Nolte

CEO, BOARD MEMBER

As CEO, Schalk has presided over a decade of extraordinary growth at Entersekt. His passion for entrepreneurship and his relationships in key industries have aided us on our path from fintech start-up to market leader. His energy, instinct and keen focus on the fundamentals leave no room for half measures.

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Entersekt is an innovator of customer-centric fintech solutions. Financial services providers and other enterprises rely on our patented mobile identity system to provide both security and the best in convenient new digital experiences to their customers, irrespective of the service channel. With us, they can concentrate on their innovation roadmap, while delivering intuitive, low-friction digital experiences to their customers.