Even Mobile Banking Cannot Drive 100% “Online Banking” Enrollment

It is no secret that banking has come a long way in the past decade. Technological changes have played a tremendous role in expanding services which banking customers now have access to. However, are we limited by the 80/20 rule?

Take online banking and mobile for example.

While there was much uncertainty at the inception of online banking and mobile banking, both have become popular with the general public. These technologies have proven to be solutions which financial institutions can generate product demand by the masses. Even the ability to deposit a check without leaving the comfort of a consumer’s home or businesses’ location for remote deposit capture are in high growth mode.

Mobile/RDC and the Community Bank

Community banks that pride themselves on personal service, may find that mobile/RDC banking could present a problem. When customers are able to complete banking transactions at their convenience, they are less likely to meet with tellers face to face. This can actually decrease a bank’s ability to up-sell on financial products, services, and other options and provide a large bank a competitive edge, as many times adoption of new technology products are faster by these larger entities.

Risky or Trustworthy?

Security and privacy have been a big concern in the growth and adoption of these new applications. Many consumers worry that their information will be compromised through using a banking application and/or processing a check via smart phone camera. While the security measures taken ultimately go back to using a reputable developer for your application, the chance of a security breach is still possible. Most customers with this concern will still end up as face to face bank clients, simply because they do not trust the technology.

The elderly customers can be overwhelmed by these new ways of doing business. Although baby boomer adoption of these technology tools is growing, the 70+ crowd will have a tough time with full utilization of the online banking model.

In conclusion, the evolution toward 100% adoption of online/mobile banking is not really feasible in a market where the consumer is so diverse. No doubt, adoption will continue to grow over time and products and solutions will evolve; but can we really eclipse an 80% adoption rate? I’m not so sure…