The pandemic has changed multiple facets of our lives, from the way we shop, socialize, work, educate, and even conduct our financial transactions. During his SherpaFUSE presentation, Dave DeFazio, Partner with StrategyCorps, pointed out that “[t]he pace of change is off the charts…During the quarantine period nearly 33% of consumers in the U.S. tried contactless payments for the first time.” Even before the pandemic, mobile apps were reshaping the way consumers, especially Millennials, interacted with financial institutions, and Dave emphasized that trend is accelerating. Dave also discussed the latest research that highlights the trends in this area, including which mobile features matter most to millennials, baby boomers, and everyone in between.
King of the Hill - Mobile App Edition,
Dave illustrated the impact of accelerated mobile transformation by examining the following:
- What big banks are doing. The big banks are locked into what Dave calls a “mobile banking arms race.” When one bank introduces a new mobile feature, all the other mega banks follow suit with their own version. Given their size and resources, the mega banks can move swiftly in this arena. However, smaller institutions are not always able to keep up with the pace of change, and this leads to a widening gulf between the mega banks and smaller institutions.
- How checking accounts are changing. Typical checking accounts are not doing much to help consumers with other financial tasks. Now, mobile apps are helping tech-savvy consumers reimagine their everyday banking tasks while enticing them with new places to keep their funds. Billions of deposit dollars are being siphoned away from traditional checking accounts by retailer mobile apps, P2P payment services, robo-advisor tools, and digital banks.
Improving future deposit growth and member retention relies on understanding the changing role of banking products in the increasingly digital financial lives of consumers. To discover how your financial institution can respond to these changes, compete in this rapidly changing environment, and see demonstrations of the mobile apps that are changing how an entire generation manages their everyday banking tasks, watch Dave DeFazio’s full presentation.