FinTech’s Fiserv says it has the goods on mobile banking’s return on investment (ROI).
The firm said in a release on Tuesday (Jan. 19) that it has published a whitepaper after conducting a year-long study that measured the ROI on mobile banking as used by financial institutions.
According to Fiserv, the research extended across eight credit unions and another nine banks, with a total of 67,000 users of mobile banking. The research zeroed in on the three months before and the three months after the beginning of using mobile services. The findings highlighted lower attrition from the banks, greater use of financial institution offerings and a growing number of transactions. The end result was a boost to financial institutions’ top lines.
Mobile users held an average of 2.3 products that were offered through their primary banking institution, which was better than the 1.3 average seen across peers that only transacted at physical branches. The three months that came after mobile banking adoption came to show transaction growth across both credit and debit, as well as ATMs and ACH conduits. That can lead to better revenues via interchange through card transactions.
[bctt tweet=”Mobile users held an average of 2.3 products that were offered through their primary banking institution, which was better than the 1.3 average seen across peers that only transacted at physical branches.”]
Turning to credit unions, members using mobile banking had 36 percent more revenue garnered by their branch-only peers, and banks saw a whopping 72 percent growth.
As a result, according to the study, staff across banks should actively engage customers on how mobile banking can dovetail with their own practices. “The financial institutions in this study are seeing tangible revenue from mobile banking,” a statement accompanying the release said. Matt Wilcox, senior vice president of marketing strategy and innovation at Fiserv, noted: “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.”