Mobile Banking a Growing Demand for Customers

For an increasing number of bank customers, not offering mobile banking is a deal-breaker.

Sixty percent of smartphone and tablet users who switched banks in the fourth quarter of 2013 cited mobile capabilities as an “important” or “extremely important” factor in their decision, according to a study from global consulting firm AlixPartners.

The number shows a 12-percent hike from when the same survey was given six months before.

“I think some of the banks that do not have mobile banking might be losing customers,” said Scott Hancock, Northwest Arkansas division president of Conway-based Centennial Bank.

There is no denying the pervasiveness of mobile banking, he said. The number of Centennial customers who opt for the convenience and efficiency of mobile features is steadily growing.

And, as sales of mobile devices continue to soar, the trend will likely continue.

The pressure is on the banks to offer technology customers expect, Hancock said.

Centennial Bank offers standard mobile features that allow customers to check account balances, transfer funds, and find the nearest ATM.  The bank also offers increasingly common features like mobile photo check deposits, customized account notifications and text banking.

Some national banks, such as U.S. Bank and First Financial Bank, have started offering mobile photo bill pay, which is touted by banking industry experts as the next big trend.

Photo bill pay, mainly popular with younger customers at this time, allows customers to snap a photo of a paper bill with their phone and have the information automatically loaded into their account so they can pay the bill electronically.

According to the AlixPartners study, 28 percent of consumers between the ages of 26 and 34 said they would be likely to change banks to gain mobile photo bill pay.