In my latest article on thefinancialbrand.com, I discuss why direct banks are winning over mobile-centric consumers. Moving forward, more consumers will adopt mobile banking and more will insist that the next institution they switch to also provide this service. In Q1 2011, under 12% of shoppers on FindABetterBank indicated they “must have” mobile banking. Today, that number is 23%.
In Q3 2013, direct banks were 38% more likely to be selected when shoppers indicated mobile banking was a must-have feature than when shoppers indicated they “don’t care” about mobile banking. The top reason that “must-have” mobile shoppers cited for choosing their online-only account was low fees. Shoppers who “don’t care” about mobile banking were 28% more likely to choose an institution because of their convenient branch locations than “must-have” mobile banking shoppers. It’s becoming evident that mobile-centric shoppers aren’t as interested in paying for convenient branch locations.
As people continue to adopt mobile banking apps for their everyday banking activities, direct banks’ lower costs, technology-oriented services, and higher deposit rates will appeal to a larger share of consumers. Does this mean that fewer consumers will choose institutions based on the convenience of their branch locations? How will network banks and credit unions respond to this disparity in order to maintain their market and deposit share over direct banks?
See full article here: http://thefinancialbrand.com/34721/direct-banks-winning-mobile-centric-consumers/