Could offering a mobile banking option help win Millennials? With more than 5.5 million U.S. Millennials and more than 95 percent of them using mobile devices, the answer seems like a no-brainer.
Simply having a mobile app, however, won’t guarantee success with the Millennial market. While this demographic likes having a connection with their financial institutions (FIs) in their pockets, they also expect other value-add features. FIs should consider the following best practices when building their mobile banking strategies.
- Simplify account opening. A recent multi-national survey of Millennials revealed 80 percent apply for accounts at FIs via mobile. Very few of them, however, complete the process, calling it too cumbersome and complex. Ideally, Millennials want to have their new accounts verified in two minutes or less.
- Give them the basics, then go beyond. The overwhelming majority of U.S. Millennials (94 percent to be exact) use their mobile banking apps to check account balances or recent transactions. Those features are considered table-stakes for a banking app. To make an impact, FIs should go beyond offering simple view functionalities and give Millennials a breakdown of where they’re spending money, recommendations for how to save, as well as the ability to pay bills and make deposits.
- Make it convenient. Consumers expect simplicity in every mobile interaction with their FIs, not just the account opening stage. When activating new cards, consumers especially appreciate convenience. FIs should consider taking a page from Citi in this respect. The global bank has reduced the steps to card activation by letting consumers use the cameras on their mobile devices to activate cards.
- Prioritize security. According to a recent survey, 93.5 percent of Millennials rank data breaches as their number one concern regarding mobile banking. Millennials want to know their information is secure. To win with this demographic, FIs should demonstrate their commitment to security. Adopting simple, yet effective security strategies like biometric authentication is a good place to start.
FIs implementing the best practices above may not only find success with the Millennial market. Older generations are also apt to embrace mobile banking. For consumers who can’t easily get to their FIs’ nearest branches, mobile offers a convenient alternative.