Introducing Mobile Banking

Mobile banking has quickly become table stakes in the consumer business, and is well on its way to be a choice channel for the small business segment as well. This is no longer a "nice-to-have" bell and whistle. The question is not whether but how to introduce mobile banking most effectively.

As you plan your mobile banking launch, consider the following nitty-gritty detail aspects:

• Pilot with your employees first. Selling something you haven't experienced is particularly difficult. So is spotting program and function bugs in a new application. Testing your mobile banking channel with employees first will prove valuable in addressing both issues.
• Develop a robust user guide. You'd think mobile banking is so simple it should be self-explanatory. Don't assume. Instead, put together a detailed user guide to address FAQ and unintentional glitches. This channel might not be intuitive for all users, so a guide can assist in facilitating adoption and reducing frustration.
• Don't forget the Android. iPhone is the lead product, but Android sales are growing at a faster rate. Make sure your mobile banking application can accommodate more than a single hardware or provider. Agnostic mobile banking is essential to wider adoption and channel success.
• Texting is important. Texting is a major communication channel for many phone users. Allow texting to and from the bank, and use it especially for fraud prevention and customer alerts. They welcome and value this feature.
• Go straight to the web.
• iPad is next - why not be there now? iPad sales have the steepest growth curve of all these new devices. Be ready with your app ASAP to capture the attractive segment of users who are iPad-based.
• Visual integration - your logo counts. Ensure your app is consistent with your brand "look", pleasing to the eye, easy to navigate and has your colors and logo. Make it private-labeled all the way, and make your app provider invisible.
• Integrate with your core systems whenever possible. This does NOT mean you should buy this app from your core provider. All too often they claim full integration but, in reality, are a portfolio of acquired applications that have as difficult a time with integration as a foreign provider. Get the very best app to meet your and your customers' needs, and handle integration as a part of the contract.
• Enrollment through online banking - pluses and minuses. Some feel that enrollment through the phone channel is key to meeting customers' preferences. Others tout enrollment through online banking due to its enhanced security performance and authentication capabilities. As you make this decision, find out what your own customers prefer; if not practical, go with the security considerations first.
• Create your own mobile banking focus group. Use your younger employees to give you market intelligence and cutting edge innovation information, as well as a testing ground for app enhancements. They have the knowledge and will appreciate being involved and consulted.
• A preferred feature - account order. Mobile banking customers often have multiple accounts. They would like to be able to array those accounts in their own order for the mobile banking app, which is something they cannot do online. Consider offering this feature. It can be a differentiator.
• Real time (even through memo posting) is essential. Customers have a hard time understanding the concept that the stated balance isn't all available to them, which can cause undue overdraft behavior. Show them available balance at all times even if you process in batch mode to avoid misunderstandings.
• Recognize pitt-falls. For example, your online banking might prompt the customer for password changes from time to time. When that happens, the mobile banking password often must also be changed. Sync those up to avoid customer frustration, and identify similar issues before they occur.
• Incorporate mobile banking into your channel behavior requirements. Many new checking account product line require a certain number of online clicks to qualify for a free account. Add mobile banking log-ons to the count to enhance adoption and put mobile on the same level as online banking.
• Beware of custom reports. Find out what reports come with your vendor contract and what reports entail a special charge. Negotiate for those in advance of the purchase. For example, frequency of log-ons (vs. simple enrollments) is often not included in the usual report suite, yet it is a key piece of data.
• Basic functionality - balance queries, transfers, transactions. Those are table-stakes. Many add locations information for both branches and ATMs as well as call center contact info to ensure full channel integration and customer support when needed.
• Get two-way actionable alerts. They work!
• Remote deposit? This might not be an essential function for the consumer side, but it is truly valued - and extremely sticky - for the small business side. Follow Chase in this regard - it's a wise move.
• Mobile as a payment source. We're not there yet and won't be until some major merchants (Wal-Mart, Starbucks etc.) make the decision to install the necessary equipment to make the phone a payment vehicle (wave-and-go). There is no telling when this will happen, but readiness is helpful. We often claim to be a fast follower, but in reality many are slow followers. When the phone becomes payment-enabled BY THE MERCHANTS it will change the world almost overnight.

SuperCommunity banks should not be on the bleeding edge, but in today's world of fast-changing technology they must become more nimble and change-ready. Mobile banking will be one of the battle grounds where nimbleness counts. Don't miss the opportunity to reduce the relevance of your physical footprint and increase convenience in one fell swoop. Being thoughtful about this innovation will make a meaningful differencing in your competitive posture in the future.