Archive

Go to:

August 2017
SMTWTFS
12345
6789101112
13141516171819
20212223242526
2728293031
< Jul Sep >
Leaguer Email Subscription

You are not currently subscribed. Click Subscribe below to receive the Leaguer email.

Fiserv: Mobile Pushes Engagement Up, Attrition Down
Wednesday, January 20, 2016 6:25 AM

Offering mobile banking technology can reduce member attrition, beef up transactions, and lead to the use of more products. This news comes from Fiserv, a financial services technology firm based in Brookfield, Wisconsin, which studied the behavior of more than 67,000 credit union members and bank customers for three months prior to and three months after they started using mobile banking.

The research found that the attrition rate for members taking advantage of mobile banking dropped to 4.9 percent at large credit unions, compared with 13.4 percent for those not using the service. For medium and small credit unions, the attrition rate fell to 2.8 percent.

“The financial institutions in this study are seeing tangible revenue from mobile banking,” said Matt Wilcox, Fiserv senior vice president/marketing strategy and innovation. “Marketing mobile banking and highlighting how it can help consumers keep pace with the speed of life is absolutely essential if financial institutions want to grow adoption and use of the service and reap the benefits of their mobile investment.”

In addition to retaining members, the research found that those financial institutions offering mobile banking experienced:

  • Increased product holdings. Average product holdings, including loans, certificates of deposit, credit cards and mortgages, climbed noticeably after a member adopted mobile services. Mobile users used an average of 2.3 products from their primary financial institution, compared with 1.3 for those who didn’t;
     
  • Increased transaction frequency. In the three months following adoption of mobile banking, users increased the number of credit card transactions, ATM transactions, and ACH transactions they made; and
     
  • Higher average revenue. Mobile bankers generated more revenue for financial institutions than did nonusers, largely thanks to the fact that they used more products and conducted more transactions. Mobile users generated roughly 36 percent more revenue than non-mobile users at credit unions.