Last month, I posted a blog about the fact consumers are willing to leave a store if mobile wallet options are not available. As it turns out, they are willing to walk away from their financial institution (FI) for the same reason — at least in the U.K.
According to new research reported by PaymentEye, nearly half of consumers (44 percent) said they would switch FIs if their current FI did not offer a mobile payment service and had no plans to introduce one.
Sharing the U.S. perspective, Accenture’s Robert Mulhall said, “In 2015, as Millennials overtake Baby Boomers as the largest living generation in the United States, they are becoming one of the most influential — and challenging — customer groups for the banking industry. Not only are they more likely to switch [FIs], but many continue to migrate to online-only [FIs], which poses a significant risk for banks in the future.”
Millennials are not the only hot segment at risk should an FI fail to adequately offer the mobile experience. Underbanked consumers, which make up an increasingly valuable segment accounting for at least 64 million untapped Americans, are quite comfortable swapping out their financial relationships as their needs dictate. Nearly a quarter of the underbanked segment switched primary FIs between 2012 and 2014.
Improving your digital banking program with solutions like mobile payments not only offers the potential to earn loyalty from influential consumers, the data-rich solutions that make up these programs will offer the opportunity to sustain that loyalty. With real-time intelligence on existing customers’ preferences and behaviors, your FI can hone its offerings to provide the kind of customized experience they are demanding.