Mobile’s Role In The Future Of The Financial Services Sector
Over the last few years, digital channels have skyrocketed in the banking sector. Now, 71% of Americans look primarily to online and mobile channels for their banking needs, according to the American Bankers Association (ABA). More financial services providers are using text messaging to reach consumers because it is an immediate and ubiquitous channel.
Convenience is a top priority for consumers, and mobile presents an easy and secure way to carry out tasks such as paying bills, transferring money, or checking account balances. These services have always been popular with millennials, but have grown more desirable to older generations due to the COVID-19 pandemic.
Millennials And Mobile
54% of consumers agreed that they use digital banking tools more now, due to the pandemic, than they did last year, according to the Digital Banking Attitudes Study by Chase. According to the report, 99% of Gen Z and 98% of millennials use a mobile banking app for various activities, including checking account balances, credit scores, and depositing checks. Although Gen X and Boomers are less likely to use mobile banking apps (86.5% and 69.%, respectively), a majority still use them. This study demonstrates that there is a market for services such as SMS customer service, SMS alerts, and mobile wallet services from banks.
Mobile Doesn’t Stop At Banking
But it is not just transactional banking that millennials are seeking convenience for. Millennials are more likely to use robo-advisors for financial wellness help(1). Millennials will soon inherit large amounts of wealth, and they will seek advice for managing it. Text messaging is a convenient way to send financial wellness tips, investment updates, and more.
Increasing Adoption of Mobile in Financial Services
Despite the growing popularity of mobile, some consumers are still more comfortable with in-person experiences, possibly because they find mobile apps confusing. A third of people who prefer branch banking say it’s because it’s easier than online banking(2). However, the data tells us that most people who have tried mobile banking because of the pandemic are likely to stick with it. Which begs the question, how can financial services providers increase mobile adoption?
Text messaging may be the solution. 81% of Americans text regularly, and there is little discrepancy between age groups(3). This easy-to-use channel that requires no additional app download could be an excellent way to offer additional convenience to customers that aren’t ready to fully immerse themselves in a mobile banking app. Financial providers can offer account updates, balance checking, payment reminders, and more via text messaging.
If you’d like to learn more about text messaging for financial services, contact us today.