Consumers Increasingly Switching Banks for Mobile Considerations

39 percent of consumers say that having a mobile offering is either “extremely important” or “important” in their decision to switch primary banks. That’s according to a recent study by business advisory firm, AlixPartners.

According to the AlixPartners study, when comparing the set of features for choosing a new bank between consumers who currently use mobile banking and those who do not, mobile played a decisive role in mobile banking users’ bank selection decision.

32 percent of consumers who switched banks in the past year and who also used mobile banking chose mobile banking as a preferred bank attribute, versus only 6% of non-users who also switched banks.

In addition, among mobile banking users who switched banks, more chose mobile as a preferred attribute than chose any traditional consumer banking selection criteria, including fee levels (24%), branch convenience (21%), customer service (21%) and deposit rates (9%).

“As banks and other financial services providers explore new offerings that deliver value-added services to consumers, the growing importance of mobile capabilities in the lives of consumers should be viewed as both ‘tablestakes’ and an opportunity for differentiation,” said Bob Hedges, managing director in the Financial Services Practice at AlixPartners.

“Clearly, these devices’ extraordinary value to consumers has raised the bar on what consumers expect from their financial services providers and placed greater importance on the role of mobile banking in bank selection. Those financial services providers that focus on mobile offerings as competitive differentiators will be winners in the future.”