9 Ways Marketing Can Help Acquire New Mobile Banking Customers

At a time when battle lines are being drawn in both the mobile banking and payments space, it is more important than ever to encourage customers to use the mobile channel.

According to research conducted by Fiserv Inc., organizations that actively market mobile banking have experienced an average adoption rate that is twice as high as institutions that did not promote the service.

So, how can financial marketers use the multiple communication channels at their disposal to promote channel migration? How do we encourage both the sign-up and utilization of the mobile channel that can help reduce costs and potentially generate revenue (see 'Monetizing Mobile Banking', Oct. 15, 2012). Below are nine ways institutions I am familiar with are promoting mobile banking.

• ATMs: One of the best ways I have seen mobile banking promoted was by Fifth Third Bank. Not only did they encourage sign-up for mobile banking on the ATM screen as many banks do, but they also included a QR code at the bottom of their transaction receipt. The use of a QR code appeals to the more advanced smartphone user while being a perfect way to electronically link to the appropriate app. The customer may decide to scan the code immediately or do so later when they reference the receipt to balance their account.

Reg E Opt In Results Better Than Expected

As I travel across the country and talk to bankers about their early Reg E opt-in results, many are experiencing significantly higher than expected acceptance rates. In fact, some banks have indicated that they have achieved opt-in rates of as high as 85% or more from the highest impacted segments (those who have the highest use of overdraft coverage) and more than 95% from new customers who are opening a new account.

This level of acceptance should provide some comfort to financial institutions who have been concerned about a massive outflow of fee income as a result of Reg E beginning on August 15. Alternatively, this level of opt in sets the bar rather high for those organizations who have either not begun their Reg E communication or had thrown in the towel expecting customers to opt out on a massive basis.

Segment Your Customer Base For Reg E Communications

The recent changes to Reg. E, impacting how financial institutions can levy fees for overdrafts caused by one time debit card or ATM transaction, have created a period of both challenge and opportunity for financial institutions. Due to the almost certain negative impact on a bank’s fee revenue and potential customer confusion about this new regulation, it is important to be able to effectively and efficiently implement these new requirements, maximizing account holder opt-in responses while providing a positive customer experience.

In this month's ABA Bank Marketing Magazine, Robert Giltner from Velocity Solutions suggests that financial institutions should start their communications process with a mass mail and email campaign to all customers explaining the new regulation. While I agree that all customers should be provided a clear understanding of their options, I don't agree that an all encompassing direct mailing should be done from a cost perspective.

Capital One Continues to Innovate

Historically an aggressive marketer and innovator in the credit card industry, Captital One has expanded its reach in recent years, using their growing banking franchise as the foundation for introducing innovative banking products. In addition to having a relatively rich debit rewards program and expanding into online and small business banking, they have recently introduced a new savings product called "InterestPlus Online Savings".

The saving program offers an above market interest rate on balances over $2,500 in addition to a 10% quarterly interest bonus payment paid if the customer uses their Capital One credit card once a month.