INCREASING YOUR MOBILITY

When it comes to mobile offerings, consumers are driving things, as they clamor for products that allow them to do most, if not all, of their day-to- day activities with a finger tap. Enter mobile banking. For several years, large banks have been moving quickly to provide their customers with mobile banking capabilities. The extent of these capabilities ranges, but a First Annapolis Consulting third annual Mobile Banking and Payments Study found that 81 of the top 100 U.S. financial institutions currently offer some form of mobile banking. Many community banks, however, appear to be moving slower. Indeed, only 37% of community banks currently offer mobile banking to their customers, according to the 2012 ICBA Community Bank Technology survey. More needs to be done, as small business customers, in particular, are actively seeking worthwhile mobile solutions. For community bankers, there is no time like the present to get started meeting those needs. A good first step is to get a flavor for what a few large banks are already doing well. Of the top 25 US financial institutions by deposits, about 50% are offering mobile person-to-person (P2P) transfers and mobile remote deposit capabilities (RDC), according to a recent report by Javelin Strategy & Research. In fact, more than 67% of financial institutions now offer the "triple play," Javelin found. This terminology refers to mobile banking through the mobile web, downloadable apps and SMS text (which can be accessed through smartphones, feature phones, and tablets). The extent to which banks offer mobile banking varies widely by institution. Chase, however, seems to be a cut above the competition, receiving Javelin's Best-in-Class award for the second year in a row. In extending the award to Chase, Javelin points to advanced offerings such as P2P transfers, mobile deposit and near real-time, actionable alerts. Meanwhile, Bank of America came in second place and scored highest for providing the widest mobile accessibility both through device and mode. Of course, not all mobile offerings are created equal, even within a bank. For example, one of Chase's mobile offerings targeted at the small business community has been widely criticized by users. In fact, its Jot app, which was rolled out in 2011 as a way to save "small business owners time managing their expenses," has only a 2-star rating in the App store and a 2.7-star rating on Google Play. Among other things, users complain the employee transaction notifications don't work. Users however, are thrilled with the concept of employee spending notifications, suggesting that the small business market could really use this feature. While the mobile channel is not yet the preferred vehicle for small-business banking, Aite Group estimates about 33% of small businesses currently bank via a mobile device and an additional 31% are interested in doing so. Aite estimates that roughly 54% of small businesses will bank via mobile in the next 4Ys. This creates an exciting opportunity in the next few years for community banks to swoop in and deliver quality mobile offerings to small business customers It's clear that mobile phones have become a greater part of everyday life for virtually everyone on the planet. Community banks need to have a viable mobile banking program to meet customer demand. Community banks need to get on board with this fast moving technology sooner rather than later.