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the final word
The Mobile Device:
Solution or Form Factor?
By Richard Steggall, Urban FT
Recently, I was asked at an industry event why banks have struggled with adapting
to mobile technology. My unequivo- cal response: They need to see mobile devices as the primary conduits between them and their customers, and not just another form factor to enable payments. The mobile device must bring together best-of-breed banking functionality—like remote check capture, peer-to-peer transfers and in-store payments—with context- driven commerce—like real-time offers that relate to what users are doing, where they’re doing it and with whom.
The global head of digital strategy at a top-five international bank tells me the ultimate challenge is finding the way to give their customers this sort of all-encompassing experi- ence. Most banks simply haven’t in- vested in their technology resources in many years, and now are trying to deploy new and innovative ser- vice offerings as a layer on top of old, archaic technology.
This is perhaps why when The Economist’s Intelligence Unit re- cently surveyed 208 banking executives, they found—for the
first time since the global financial crisis—that banks are spending more money on technology, particu- larly digital strategies (46 percent), than on responding to and manag- ing regulation (35 percent). This is
a step in the right direction if these
banks want to be responsive in meeting the continually evolving needs of their customers.
Customers clearly exercise their right of choice, and often that choice is won with a modern and differentiated service offering. According to Accenture’s 2014 North America Consumer Digital Banking Survey, 73 percent of customers would use a bank that provides a range of digital services, including real-time spending analysis, deals that save them money, location-based deals, and ways to simplify how and where they spend their money.
“Digital banking” is a term loose- ly applied to many new innova- tions. But in any scenario, mobile devices must be a key tenet
to an effective digital strategy. They’re not simply another form factor. Mobile devices are the means for financial institutions and prepaid providers to give their customers what they want, while also enhancing in- ternal customer and revenue growth objectives.
Richard Steggall is CEO and co-founder of Urban FT, a white-label digital bank- ing platform for banks of all sizes. He may be reached at R@UrbanFT.com.
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