- Mobile banking can allow customers to conduct everyday transactions on-the-go, lowering the customer effort score.
- Online and mobile channels represent a significantly lower investment than bricks-and-mortar channels.
- Multi-channel banking customers are likely to purchase a higher number of goods and services than single-channel customers and are 1.5 times as profitable.
Retail banks have always been front-runners when it comes to embracing the potential of digital. According to The Digital Tipping Point, a recent report by PwC, banks attract some of Australia’s highest levels of online traffic and represent four of the country’s 25 most visited websites.
The research also shows that the internet is the preferred channel for everyday banking activities, with over 75% of customers using basic online banking features on a regular basis.
However, the mobile commerce boom is spearheading new, highly flexible banking models as more customers access payment apps and financial management tools on-the-go. This channel has also given rise to a series of new customer touch points, setting the stage for innovative revenue streams and opportunities for growth. The research highlighted that:
Mobile banking can drive a lower customer effort score.
In the online sphere, the ability to deliver an exemplary customer experience is one of the biggest markers of success. For banks, ensuring that digital and mobile channels offer the most flexible and effortless alternative to offline banking can drive customer relationships and significantly boost revenue. This can also help lower the customer effort score, a metric that dictates the likelihood of a customer using the service again. A user-friendly, customer-centric mobile offering can save a customer time and money – a factor that bodes well for brand awareness, customer loyalty and repeat business.
Digital represents a lower-cost investment channel.
In most cases, digital and mobile channels involve lower operating costs than offline banking, and offer a more economical means of investment. A good mobile website or app can allow customers to self-serve and complete banking activities without input, freeing up staff for high-value customer transactions such as needs analysis and the provision of wealth management advice.
Digital channels also offer substantial cost savings per interaction in comparison to offline channels with The Digital Tipping Point research showing that the cost of serving a customer in a branch is 77 times greater than via digital channels and 43 times greater than in a contact centre. However, banks need to ensure that their digital offering is heavily focused on the customer experience – otherwise it’s likely to do more harm than good.
Multi-channel retail banking drives profitability.
The tendency to oscillate between online, offline and mobile channels is a defining trait of the new, cross-channel consumer and retail banks are well-placed to capitalise on this. The typical customer is likely to access a banking website several times a day and across multiple touch points – whether via their desktop at work, on public transport on the way home or while browsing their tablet in the evening.
According to the research, multi-channel banking customers are likely to hold more products and services than single-channel customers and are approximately 1.5 times as profitable. This means that banks who deliver a seamless multichannel experience are in a powerful position to drive customer relationships, value-adds and sales.