Over the past five years, user activity on finance apps has rocketed by 354%. While this is great news for FinTechs, many of the more traditional banks are feeling the pressure. How do you keep users engaged and avoid churn? Consider these three factors as you navigate the growth and complexities of mobile banking.
Finance has been transformed by mobile forever: over the past five years, user activity on finance apps has rocketed by 354%. While this is great news for FinTechs, many of the more traditional banks are feeling the pressure — especially with new entrants like N26 shaking up the American financial services scene.
And with more options on the market than ever before, acquiring users isn’t that easy. While research from Citi showed that 2018 was the year consumers began to adopt personal finance apps in earnest, install rates this year are hitting a plateau — with mobile banking reaching near saturation among younger consumers.
So, how do you keep users engaged and avoid churn? Here are three factors to consider as you navigate growth and complexities in the mobile banking space.
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Users Are Discerning, so Get the UX Right
With banks making it easier than ever to switch providers, the barriers to churn have never been lower. That makes it more important than ever to get UX right.
UK-based mobile bank Monzo is a prime example of how a carefully crafted UX strategy pays off. Valued at more than $1 billion, the digital-only bank has just launched Stateside with its “bank of the future.” In a recent interview, Monzo’s Simon Balmain said that “Our aim is to serve as our customers’ financial hub, and to create the most delightful, thoughtful and engaging user experience to really give people empowerment over their financial lives.”
Stickiness is a top KPI for Monzo, which measures success based on daily open rates and is a good indication of how user-friendly the app really is. As Balmain points out, the key to this is making the app feel like “it’s made for each customer, the human being using it, and is not just a place to view information like many other apps.” With that in mind, make sure you balance the process and structure of your app with personalization to address and engage users.
Make Customer Service Your Differentiator
Providing the right customer service options is essential, especially as that’s where neobanks excel.
But be careful not to make digital the be-all and end-all: consumers still look for a holistic approach when engaging with their banks. Providing a digital-only approach doesn’t take into account the nuances around context and journeys, and risks alienating customers. Although digital is great for day-to-day actions like balance checks, for more important processes, make sure customers can reach a customer service agent at the end of the line.
Harnessing the right channels for every situation is essential to removing friction, increasing convenience and building trust. With most banks providing the same range of services, customer service is where you can differentiate yourself — so make it a key pillar of your marketing plan.
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Banking Apps Among the Hardest Hit by AD Fraud, so Get the Right Prevention Strategy in Place
Looking at Adjust’s data by vertical, banking apps top the charts for the industry most affected by ad fraud — where fraudsters attempt to con advertisers or publishers by exploiting technology to steal from advertising budgets.
Such a high rate of fraud in the Banking sector makes sense once you consider that apps with high Cost Per Action spend (campaigns based on post-install actions, also known as CPA) have become the biggest targets for fraudsters. Crucially for fraudsters, marketers working on a CPA basis the only payout once their new users complete an action, such as a registration event. If fraudsters are behind the action, they’ll gain the profit.
Based on data from Liftoff, an App Marketing platform, we see that CPAs vary widely depending on vertical.
The larger the cost, the bigger the motivation for fraudsters to go after them. Finance has some of the highest CPAs in the industry, so it’s no surprise these apps are such a target.
Getting the right fraud prevention software in place is the only fail-safe way to beat fraudsters. Importantly, look out for tools that prevent rather than detect. Blocking fraud in real-time means marketers won’t pay for fake installs, as opposed to battling with networks on reimbursement after the fact.
While fraud remains a very real threat to banking apps, the opportunities in the mobile banking space far outweigh the risks. By offering a convenient, streamlined and fiercely personal experience, forward-thinking apps can gain an advantage over their traditional competitors.
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