New research into mobile banking out of consultancy PwC has generated two bold-faced headlines: mobile banking will be the norm by 2015 and consumers will be willing to pay up to $15 per month for mobile banking services that offer convenience and value.
Key to the PwC research is its prediction that by 2015 mobile will overtake branch networks as the dominant channel of customer interaction with financial institutions.
Another finding is that the bar is getting raised: to attract Gen Y customers, financial institutions need to improve their digital banking products.
The PwC research is based on a survey of 3,000 customers globally.
In a statement, PwC elaborated on exactly what it believes customers will pay for: “The research reveals that customers are willing to pay for social media notifications, an electronic wallet for loyalty cards and financial tools provided by banks.”
Stephen Whitehouse, retail and commercial banking partner at PwC, said: “Despite customers’ appetite for new and innovative digital banking offerings, and the fact they are willing to pay for these, the majority of banks still only provide basic mobile and Internet banking services. Banks are clearly missing a trick if they don’t start to invest in their digital offerings and only see digital as a way to reduce costs.
“Banks have generally been too slow to embrace the digital innovation customers now expect from other industries, such as retail or travel. This needs to improve if banks are to hold on to their existing customers and attract the next generation, as the quality of a bank’s digital offering will become an increasingly important factor for consumers.”