4 Convenience Killers That Will Bury Your Mobile Strategy

At your fingertips. Available 24/7/365. No pants required.

Digital access promises a more convenient consumer experience. However, according to numerous studies and surveys, financial consumers aren’t impressed.

Mobile banking apps average a 3.7 out of five rating according to a recent Magnify Money report, which used data from the Apple App Store and Google Play Store. If you assigned a grade to that rating, it would be a dismal C at 74%. Not a failing grade, but certainly not the A+ experience you’ve sold to your members.

Friction is to blame for the mismatch between mobile banking’s promises and delivery. It’s the red tape that makes your efficient new app less efficient than driving to a branch and interacting with a human.

It’s a relationship killer.

As founder of POPio Mobile Video Cloud, I speak with a lot of credit union executives who are looking for solutions to reduce digital friction. According to them, and other organizations that have researched friction, here are the four types that consumers hate the most.

1. Onboarding

According to a recent Gallup survey, 0% of respondents said they preferred to use mobile channels to open or close an account. None. I suspect that in most cases, it’s because they can’t. Many institutions require the applicant to visit a branch and show ID to confirm their identities. Others don’t permit opening deposits to be made via mobile deposit, and require the funds to be deposited in a branch or ATM, which means waiting for an ATM card to arrive in the mail. The same Gallup survey reported that 0% of respondents prefer mobile channels to apply for a loan. Onboarding friction is to blame here as well. In this day and age, your existing members shouldn’t have to enter their personal information into digital applications. They expect their date of birth, address, place of employment and annual income to be prefilled into the form, not just because your credit union already has that information, but because it’s too much to type on a mobile device, even for young eyes and nimble fingers.

Furthermore, if your mobile loan application doesn’t allow the member to use the app to snap a photo of required documents and send them for immediate approval, it’s not convenient. In fact, if you require any documents at all for approval, you’re perceived as inconvenient because other lenders have found ways around it.

You need look no further than digital application abandonment rates to support this notion. Depending upon who you ask, mobile loan and member application abandonment rates range from a best-case 70% to as high as 98%. Clearly, when it comes to onboarding, digital does not deliver a better member experience.

2. Authentication

If you don’t offer a biometric option like fingerprint authentication for logging into your app, you’re outdated. According to an IBM Security study published earlier this year, 67% of respondents said they’re comfortable using biometrics. For millennials, that number increases to 75%. And the research showed that forcing millennials to use passwords creates security risk: Fewer than half said they use complex passwords, and 41% reuse the same password on multiple accounts. We’ve heard from our credit union clients that efforts to prevent wire fraud are also unpopular. Many members use wire transfers to address an unexpected emergency, and who wants to take the time to visit a branch in that situation? But wire fraud is a costly problem and facial identification is necessary, whether in a branch or via mobile video. To deliver a good experience, you must reduce friction.

3. Navigation

Too often, apps aren’t designed with the end user in mind. Many institutions architect their app to conform to outdated core systems, general ledger codes or assumptions that consumers know fees, terms and conditions. Navigation needs to be tested by members, include clear instructions and provide valuable information somewhere other than a buried Q&A page.

4. Communication

Consumers are willing to accept that digital channels have glitches, but they can’t stand it when there is no clear and easy way to get help. Does your app waste your members’ time by forcing them to scroll through a frequently asked questions page before being provided with a phone number or chat option? Do your representatives even use your mobile app so they can assist members, or do you send them down a tech support rabbit hole?

When it comes to purchasing and brand loyalty, member behavior is based upon emotions, not logic. In order to make an emotional connection with a brand, they need to be heard. That means putting a human on the other end of the line, quickly and easily, when they need it.

Is It Really That Bad?

Digital channels present a competitive conundrum that can’t be ignored, because they level the playing field for everyone. When done right, they allow you to compete head-to-head with institutions 100 times your asset size and expand your geographical footprint to practically anywhere in the world.

However, a bad digital experience will allow competitors to encroach upon your field of membership and steal loyal members. These days, brand relationship takes a backseat to convenience and ease of use. If you went to your favorite restaurant and found the front door locked, would you bother to walk around to the alley to see if you could get in? Of course not. You’d try the new place next door with the welcoming, well-lit entrance.

Friction of any kind in a retail setting bothers me, which I suppose is why I transitioned in my career from an advertising agency executive to a technology pioneer. Problem solving drives me to create solutions like mobile video banking, which bridges the gap between digital and face-to-face service.

Don’t make the mistake of inadvertently creating friction for your members because you’ve developed or purchased technology based on your understanding of your credit union’s products, services, systems and regulations. Your members have a completely different perspective. When you view your digital experience through their eyes and adjust accordingly, you can defend and even build your market share.

Gene Pranger is CEO and Founder of POPio Mobile Video Cloud. He can be reached at 801-417-9000 or gpranger@genepranger.com.