Mobile Banking Drives Increased Card Transactions
There was a lot of information in last week’s Bank of America webcast. I think a key metric got buried.
Bank of America’s Doug Brown said that they had found a direct correlation between mobile banking and increased debit card transaction amounts. To my knowledge, this is the first time we’ve had hard evidence that mobile banking can drive higher transaction revenue in traditional payment channels.
Brown surmises that mobile bankers spend more on their cards because mobile banking gives them the confidence to make larger purchases because they have complete, always-with-them control of their account information.
Higher card spending by mobile banking users means that mobile banking is good for everyone: banks, merchants, card associations and consumers.
It’s good for consumers because they have access to more of their money when they need it. It’s good for merchants because mobile banking is driving higher sales. It’s good for bankers because of increased transaction revenue both on the consumer side of the transaction and the merchant side of the transaction. Furthermore, checking balances creates a positive brand experience that can generate strong loyalty to the bank.
Next, I want to know how much mobile banking increased spending…