'Segmented User Experience & Better Digital Wallet Must for Mobile Banking Future'

Retail banks can realize the full potential of mobile banking, if they offer segmented consumer experiences and advanced digital wallet capabilities, a new study conducted by Cognizant and Monitise plc has found.

According to the study, consumers are increasingly expecting banks to help improve their mobile lifestyles by providing anytime, anywhere capabilities, customized user experiences, shopping and social features, and value-added services. This, the study states, represents a new opportunity for retail banks to drive customer loyalty, attract new business and generate more revenues.

The study surveyed more than 700 consumers from a diverse group of U.S. financial institutions, age ranges, annual incomes, genders, ethnicities, education and employment backgrounds to understand their mobile banking expectations, emerging trends, and current and future needs.

A report, titled Segment-Based Strategies for Mobile Banking - based on the findings of the study - details consumer expectations and recommendations for banks to focus on continuing innovation and tailoring mobile strategies through consumer segmentation.

Some other key findings of the study include factors like interest in remote check deposit and real-time alerts on unusual account activity, which are important features across segments that could induce consumers to switch banks.

It also pointed out that tablets have emerged as a unique and valued user interface with 41 per cent of survey respondents wanting to use tablets as compared to smartphones, and 60 per cent of tablet owners preferring a tablet for mobile banking.

Moreover, consumers want their bank to offer better shopping and social experiences and also prefer offers from banks rather than other mobile payment mediums.

In another related finding, consumers are seeking services that drive security, ease mobile payment use and provide insights on spending and bill payment patterns, and they're willing to invest in these products.

More than one-third of consumers surveyed are willing to pay for advanced security features such as biometrics and nearly 30 per cent of respondents indicated a willingness to pay for mobile payment capabilities.