Everywhere you look these days, people are on their smart phones.
They are on them while they’re waiting for their flight at the airport, while waiting for their food at a restaurant, and even while waiting for the movie to start or the light at the intersection to change.
They are either checking e-mails, sending text messages, watching movies, playing games, taking pictures, getting directions, checking the weather, reading the Wall Street Journal, scanning bar codes or QR Codes, checking the time, or programming their DVR. Some are actually making a phone call!
Do you think that before long all of these people will also be using their smart phones to check their bank accounts or pay bills? Or pay for that popcorn and Coke at the theater? Even make deposits?
For banks that have not been paying attention, now is the time to act. The big question for the banking industry is who will establish the relationship with these cell phone users? Will it be the banks? Or will it be the telephone companies?
Banks have already learned that “do-it-yourself” online banking customers are a lot more profitable than “walk-ins.” With online banking, banks can reduce their number of branches, payrolls, administrative costs, and handling charges. Now they just have to give all of those smart phone users the ability to bank with their phones, giving them anywhere, anytime banking.
But where do they start?
Most of the top banking software providers – like Jack Henry & Associates, Fiserv and Fidelity (FIS) – are now offering mobile technology. Their offerings support all three modes of mobile banking – Wireless Access Protocol (WAP), downloadable applications, and SMS/text – allowing financial institutions to target different segments of their client base with the most appropriate mobile banking solution.
Banks will have to start aggressively marketing these new technologies or risk losing their customers to other banks or to the telephone companies.
Since the target market is cell phone users, the first step would be to begin collecting cell phone numbers. Banks can use this information to send promotional text messages asking potential customers to sign up.
Now I’m sure there are some banks thinking, where do I get cell phone numbers? Start by looking at what other companies or organizations are doing. I recently went to the American Idol concert in Atlanta. They ran a promotion on the screen asking everyone to text their vote for their favorite Ford TV commercial. The winner would win a pass to a “backstage party” with the singers after the concert.
I voted and guess what happened? Within hours, I started receiving promotional messages from Ford promoting their new line of vehicles. Banks could give away what they are known for: cash. Everyone likes cash!
The days of people walking into the local bank to make a deposit are almost gone.
Before long, people will be scanning their checks with their smart phones to make deposits. There will be no need for banks to give away free cookies and coffee.
But banks had better wake up and get going because time is running out!
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Neal Reynolds has worked with hundreds of banks and credit unions around the country helping them to grow core deposits and market share without growing their marketing budgets. Contact him at [email protected].
