Mobile Banking Key to Better Money Management
If banks were ever uncertain as to the benefits of communicating with their customers through mobile channels, new research from ING shows that there is a clear advantage for investing in this area as it helps customers to spend and save more wisely.
Mobile banking leads to improved money management, a report from the group shows, highlighting how bulk SMS services can lead to better consumer loyalty and fewer problem accounts.
What’s interesting from the banks’ perspective is the shift in consumer behaviour caused by the use of mobile devices.
As banks can use bulk SMS services to communicate with customers it’s an effective tool for helping to support this mobile-led money management revolution.
ING senior economist Ian Bright says: “The instant visibility offered by mobile banking also means more consumers feel in control of their finances, claiming to have avoided missing payments and keeping on top of bills.”
A recent report from the Fed showed how mobile messages like a text alert helps to make consumers take better financial decisions – such as topping up an account before it goes into the red.
Separately, a report from the Financial Conduct Authority in the UK urged banks to make greater use of text message alerts to better inform customers of products, services and the best rates.
The ING study reveals that 85 per cent of mobile banking consumers in Europe can list at least one way in which their money management has improved because of this channel.
More than one in five European consumers say they have not missed a payment because of mobile banking – a huge benefit that makes a very clear case for improving mobile communications with customers.
Clearly a text message alert or similar telling a customer they are about to miss a payment is resonating with consumers who want to feel more empowered about their finances.
Staying connected with customers is more important than ever – the task for banks and credit unions is to use the mobile channel more as it is the way consumers are increasingly choosing to make payments and banking.
Mobile banking makes it easier for the average consumer to check their account, see where their bills are going and move money around from a savings account to a checking account when necessary. This is the by-product of mobile banking, but there is an advantage to building on this by taking a more assertive attitude.
Rather than being passive, banks can use this channel to proactively engage customers, such as by sending out an alert when a payment is due. Because it’s easy to embed links in SMS messages, the consumer just needs to click through to the relevant url.
If mobile banking leads to better money management, anything banks can do to support this channel will be of benefit.
