Mobile Financial Services Heading to Next Level

Financial services firms have been working to update their processes and customer-facing offerings in light of increased mobile device use for a while now, and they may have to kick efforts into a new gear to keep up with innovation. A recent Ovum study found that while consumer adoption of mobile financial services is still mixed, the market is pointing to the next generation of mobile financial services solutions as the key tipping point to fuel increased adoption. With the sector at a tipping point, banks, credit unions and similar organizations need to consider how they will support the business processes and customer interactions that go into mobility plans.

Mobile financial services getting more sophisticated
The study found that innovation in handling tasks around savings, loans, and payments for medical and educational services will be the next key feature sets for mobile financial services firms. These capabilities are generally considered the most important functions among respondents, but at this point, moving forward also depends on improving consumer perception around security, transaction costs and ease of use.

Financial services firms adjusting processes for mobile device usersFinancial services firms increasingly need to adjust processes to the demands of mobile device users.

According to the study, approximately 30 percent of respondents in mature markets said that ease of use is a major barrier to their use of mobile financial services solutions. This matches the figure for people that care the most about lowering transaction costs. While these concerns highlight the need for future innovation, Eden Zoller, principal analyst with Ovum, explained that the benefits of the technology are clear.

“Consumers who have adopted mobile financial services appreciate the benefits these services can bring,” said Zoller. “The ubiquity and convenience – the ability to use mobile financial services anytime, anywhere – was the overwhelming benefit cited by survey respondents in both emerging and mature markets.”

Making mobile financial services work for your organization
The Ovum study revealed a great deal about the evolving mobile financial services market, but one theme stood out – the innovation on the horizon is about creating a better customer experience. The way consumers interact with your organization is dictated by the underlying processes that dictate your technological choices. Business process management tools can help financial services firms standardize, streamline and automate their processes in light of mobile application innovation.

Creating an excellent customer experience begins with process advances, and financial services that align their operations with their technological capabilities can embrace mobile innovation and meet changing consumer demands.