One big, screaming takeaway from a recent survey by Javelin and the identity firm Jumio is that all generations now accept and use mobile banking. For some years we’ve heard that only Millennials embrace mobile, but listen up: it’s now an everyday tool for many of us.
That’s not to say that all the news is rosy. Millennials, in particular, are not always pleased with their user experience. The Javelin report shows that 38% of Millennials who abandoned mobile banking did so because the process took too long.
That number matters because Millennials increasingly do the bulk of their banking via mobile devices (their phones, in particular).
Understand: Millennials still lead other generations in their use of mobile banking, and they are the future of credit unions, so their preferences matter a lot.
Keep in mind that Millenials will make their unsatisfactory experiences known. According to the Javelin research, 31% will tell a friend, complain to the institution, or shut their account altogether.
As for other generations, only 34% of Baby Boomers (born 1946-1962) and 51% of Gen Xers (born 1962-1982) use mobile monthly, compared to 62% of Millennials.
In fact, Millennials use mobile banking to perform a variety of tasks. That’s according to Javelin as well as banking tech company FIS, whose data shows that 49% had paid a bill via mobile in the past 30 days, and 22% had made a p2p payment via mobile.
However, it is interesting to note that Gen Xers use mobile remote deposit capture (MRDC) at a higher rate than Millennials do. In fact, 20% of Gen Xers use MRDC compared to 19% of Millennials. Meanwhile, only 11% of Boomers use it.
Millennials may use mobile more, but they also have more gripes about mobile banking. Pay attention. Their gripes serve as a roadmap to a better, smoother mobile banking experience. And that’s how to keep members in the long term.
Take note, for example, that 53% said they had “concerns” about ease of use in mobile banking and that 28% grumbled about “hidden fees.”
What hidden fees are they talking about? Jenifer Valdivia, an executive with Jumio, said in an interview that fees for paper statements are one sore spot.
Multiple experts say that fees for out-of-network ATM transactions are another sore spot, which underlines the crucial role of surcharge-free networks. For example, CULIANCE puts many tens of thousands of ATMs at their members’ disposal. A credit union that belongs to such a network has a substantial advantage in keeping members satisfied.
The ease-of-use concern is the harder one to address. Valdivia reports that of those surveyed, 36% of Millennials cited processes, such as loading time, taking too long, and 20% said authentication took too long. Furthermore, 9% admitted they became distracted (easier to do when the process takes long). “They want a great, fast user experience,” said Valdivia.
This is why many vendors are working, hard and fast, at creating better mobile apps. Optimism is plentiful that progress is coming soon.
Millennials also complain about security issues and mobile banking. Per the Javelin numbers, 63% of younger Millennials (born in 1993 and later) worry about security, and 54% of older Millennials (born 1980-1992) have such worries. That compares to 57% of Boomers and 55% of Gen Xers.
Fraud worries are huge for many, and that deters usage, claimed this research. Smart institutions are taking steps to reassure users—often by implementing more safeguards, at least for those who request them.
In summary, work needs doing to polish mobile banking so that it better suits Millennials, but, assures Valdivia, “credit unions are well positioned to compete successfully against banks if they nail their digital experience.”
Stephen Stuut, CEO at Jumio, tells us: “Millennial expectations for a simple, fast user experience will make the difference between long-term customer loyalty and churn.”
Get the full Javelin-Jumio study, for free, here. It’s a fast read, filled with eye-popping metrics.