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Mobile Financial Congress (notes con’t)

2009 December 3
by David Eads

Another prominent theme at the Mobile Financial Congress in Miami this week is supporting all customers, not just online banking customers. Banks are reporting strong adoption rates typically in the 10-15% range.

More importantly, banks are reporting strong returns on their investment. Banks are deflecting call center calls (Huntington: down 30%) and increasing the number of debit card transations (SunTrust: 3 more per month).

There’s consensus among attendees that we need to turn our attention to the most expensive customers to support: those that don’t use online banking. Mobile banking is generating these huge savings by reducing costs from what used to be our lowest cost channel. Therefore the biggest savings are yet to come by significantly reducing the costs of our highest cost customers.

Unfortunately, few (if any) vendors have live deployments of mobile banking systems that support all customers, not just online bankers.

Furthermore, many bank systems lack the infrastructure to support customers in an electronic channel that is not Internet Banking. One oft cited solution is to simply enroll these users in online banking too. That may or may not be a workable approach for any given institution. Banks and Credit Unions need to look closely at their infrastructure and processes to allow electronic enrollment of non-OLB customers .

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