Blog » 2015 » December » How Banks Can Competitively Utilize Technology

Posted on Dec 22, 2015 1:45pm PST

As people’s behaviors change regarding technology, so will their behavior regarding their money. This pebble of truth has created significant ripples throughout the consumer financing industry, forcing banks to reconsider how they interact with their customers. One major factor has been how banks use mobile technology to improve or enhance the customer experience.

Below, Bridgeforce has outlined three technologies banks can implement to compete with emerging players in the banking and lending industry.

Remote Deposit Capture (RDC)

According to findings from the Raddon Financial Group, the more that users utilize mobile technology to interact with their financial institutions, the more likely users were to recommend them to someone else. High frequency users are not just spenders, but frequently deposit money as well. Allowing your customers to easily and simply deposit money into their accounts on mobile would lead to stronger customer loyalty while creating a powerful revenue possibility.

Consider this: 21 percent of users 25-35 years old use mobile deposits—that number increases to 30 percent for households that make $50,000 a year or more. The soon-to-be largest group of spenders in the United States expect their banks to have the ability to create deposits through mobile photos of checks. In fact, it was found that for millennial customers, RDC increased the overall rate of deposit by two percent, a significant asset that has yet to be truly tapped.

Mobile Photo Bill Pay

Mobile photo bill pay would allow users to photograph their bill and create the ability to pay the bill directly through the mobile banking app. It shortens the steps between taking a paper bill and converting it into an automated digital action. An even better function would create an automated, recurring payment inside the user’s bank account based on the information provided on the photographed bill.

Peripheral services like mobile photo bill pay are what set financing institutions apart. The more flexible and simple your online and mobile services are, the more customers you will satisfy and retain. In a 2012 survey conducted by Bain and Company, 32 percent of all customers used smartphones or tablets to interact or utilize their banks in the previous three months. After three years, it is likely that the percentage has grown.

Third-Party Wallet & Merchant Compatibility

In a modern financial landscape, users are looking for a strong balance of security and simplicity. However, most users will likely be drawn first by simple and convenient functions. As a result, many users are utilizing digital wallets and alternative options that allow them to manage their money using as few financial tools as possible. Making your bank as compatible as possible with numerous vendors, third-party wallet apps, and merchants would go a long way towards setting your institution apart.

The word of the day is integration. Allowing your customers the ability to integrate their bank account with numerous applications and online sellers creates a simple, fluid online experience for them. In an increasingly digital world, the bank that allows the most flexibility will win the most customers while retaining current ones effectively.