Location and ATM availability is still perceived as the primary driver for potential members selecting or switching financial institutions. However, mobile and online banking offerings are increasingly more important, especially among millennials. For credit unions who have prioritized improving their mobile banking app, only to be left scratching their heads when download numbers and usage data don't reflect expectations, here are some key reasons why there may be member hesitation to adopt the technology:
- Security Concerns:Mobile bankingsecurity has been consistently identified as the top barrier to adoption. General security concerns will keep a percentage of your membersfrom moving to new technologies, and specific concerns such as rogue apps that have the potential to steal mobile banking login credentials will certainly deter some members from embracing your mobile app.It is up to credit unions to sell their cybersecurity as a strength, because in reality, banking via a mobile app is as safe as walking into the credit union and interacting directly with a teller, and it is actually much more secure than banking through a browser on a personal computer. Why? Becausemobile banking providerscan control the security through theapp much easier than through a browser.1
- Visibility: Especially with aging populations, using a smartphone's small screen may prohibit some members from downloading mobile apps.The difficulty of seeing and typing on smartphone screens can pose limitations in using mobile devices for financial services. Educating these members on using your credit union mobile app on tablets, with a larger screen, may alleviate this concern.2
- Usability: How easy is it to effectively use your mobile app? Are there too many steps for what should be a simple transaction? Are users able to access all the necessary data they need to make meaningful transactions? Often, the services available on mobile apps are too basic, and they simply augment what can be done on internet banking. Remote Deposit is a feature that enables credit union mobile apps to stand out over credit union internet banking and can be touted as a reason for members to begin the download.
- Fees and Data Usage: Most credit unions do not charge fees as a mobile banking provider, however, some still do and this additional charge can be a deterrent. But even for CU's that don't charge a fee, cell phone companies still charge for data. And there are budget-conscious people who monitor their data usage very closely, which can be a reason that people avoid mobile banking.
- They simply don't need it: A 2015 survey found that 87.9 percent of U.S. adults did not use mobile banking because they felt their banking needs were being met without it.3
1.http://www.banktech.com/channels/dont-be-afraid-of-mobile-banking-apps/a/d-id/1295727?
2.http://www.moneyunder30.com/consumers-wary-of-mobile-banking
3.http://www.statista.com/statistics/244250/reasons-why-us-users-didnt-use-mobile-banking-services/
Written By: Preston Packer
Executive Vice President | CMO at FLEX Credit Union Technology
FAQs
Privacy Concerns – Another major reason for mobile app abandonment is the User Privacy. In the recent past, mobile apps have started requesting questionable in-app permissions, sell user data, track geolocation, and automatically post to personal social media accounts on behalf of the end user.
Why are people not downloading my app? ›
Privacy Concerns – Another major reason for mobile app abandonment is the User Privacy. In the recent past, mobile apps have started requesting questionable in-app permissions, sell user data, track geolocation, and automatically post to personal social media accounts on behalf of the end user.
What are the challenges for mobile banking solution? ›
In mobile banking there is authentication risk at the login time or when we access our account through the mobile system because in mobile banking for the authentication PINS numbers are used but PINS authentication method is an old method and many security issues such as password and id theft were by stealing the ...
What is the problem of mobile banking? ›
Data breaches occur when cybercriminals exploit website or system vulnerabilities to gain access to sensitive information. A bank may experience a data breach if they don't prioritize cybersecurity—and hackers can also use stolen data to compromise mobile banking apps.
What are the problems with banking apps? ›
The two most significant issues with financial and mobile banking apps that users experience are app freezing and a dropped internet connection. Next in line is the inability of apps to display transaction details or to connect with a customer service executive directly.
Why do people stop using apps? ›
71% of users will stop using an app within the first 90 days of downloading. A long and complicated sign-up process is one of the most common reasons for deleting an app. Running ads is a popular way to monetize an app, but also a reason for users to abandon it.
Are people still downloading apps? ›
These figures are growing every year, and along with it, the market for mobile apps. In 2021, more than 100 billion apps were downloaded for the first time, and that is expected to reach 150 billion by 2025.
What are the limitations of mobile banking app? ›
Cons:
- Risk of hacking and identity theft.
- Tech issues or bugs can affect usability.
- Some mobile banking apps charge fees.
- Features aren't the same for all apps.
Security and fraud instances: This is one of the most significant challenges for banks promoting online banking.
What are the four challenges that may be associated with M banking? ›
The main strategic challenges of m-banking in Kenyan commercial banks are; restructuring challenges, customer reluctance and cost challenges, system failure, network vulnerabilities, software defects and operating mistakes, processing error and data loss due to virus.
Disadvantages:
- Security risks. While mobile banking offers security features to protect user information, there is still a risk of security breaches. ...
- Technical issues. ...
- Privacy concerns.
Cons of online banks
- Customer service can be virtual and impersonal.
- You are more likely to incur ATM fees if the online bank has no ATM network or is part of a small network.
- You can't deposit cash unless the bank is linked to ATMs that accept cash.
- The number of products tends to be more limited at online banks.
Some disadvantages of online banking include: No physical branches when you need help. Challenging cash deposits. No access to foreign currency.
What are the pros and cons of banking apps? ›
9 Advantages and Disadvantages of Digital Banking
- #1: Access to Money and Account Information. ...
- #2: Equity. ...
- #3: Paperless Banking. ...
- #4: 24/7 Customer Assistance. ...
- #5: Speedy Transactions. ...
- #1: Security. ...
- #2: Downtime. ...
- #3: Learning Curve.
As long as you're taking steps to protect your data -- such as avoiding public Wi-Fi and enabling multifactor authentication -- using a banking app to manage your money is safe.
Why is banking system failing? ›
The most common cause of bank failure is when the value of the bank's assets falls below the market value of the bank's liabilities, which are the bank's obligations to creditors and depositors.
Why aren't apps downloading on iPhone? ›
Check the storage space on your iPhone
Insufficient storage space on your iPhone is the most likely cause of a new app not downloading on your iPhone. Apps are notorious for taking up a lot of room on your phone, as are photos.
Why is the App Store not downloading my apps? ›
Check your Apple ID payment method. You need to connect a payment method to your Apple ID to download apps, even if you're downloading a free app. If you do not have a payment method on file or your card is expired, you might not be able to download apps. This can also lead to a Verification Required pop-up message.
What to do when apps are not downloading on App Store? ›
Try this if you have an issue when you update or download apps from the App Store on your iPhone or iPad.
- Manually update the app. Learn how to manually update an app.
- Add a payment method. ...
- Resolve a problem with your payment method. ...
- Restart your device.
Google Play Store Errors typically contain random numbers and are generated when you try to download apps from the Google Play Store. These errors might be due to Google Play Store updates, Google cache issues, Google Play Store stored data issues, or Google account issues.
Location and ATM availability is still perceived as the primary driver for potential members selecting or switching financial institutions. However, mobile and online banking offerings are increasingly more important, especially among millennials. For credit unions who have prioritized improving their mobile banking app, only to be left scratching their heads when download numbers and usage data don't reflect expectations, here are some key reasons why there may be member hesitation to adopt the technology:
