Academic journal article ABA Banking Journal

What's Next to Leave the Branch?

Academic journal article ABA Banking Journal

What's Next to Leave the Branch?

Article excerpt

How long could you last without your smartphone? In Bank of America's recent "Trends in Consumer Mobility" report, 44 percent of respondents said they couldn't make it a day without their mobile device. This need for constant connectivity extends to mobile banking-- six in 10 respondents have tried a mobile banking app, with 62 percent of those accessing it a few times a week or more.

We've already seen the effects of this extensive adoption on branch transaction volume. We know that fewer and fewer customers come into the branch to deposit a check or to check their balance or to see their recent transactions. But is there more to come? Are there other mobile capabilities in early adoption or on the horizon that may siphon off further transaction volume? We asked some experts in the mobile banking field that question and here's what they said.

Commercial deposits

James DeBello is the CEO of Mitek, a company that provides the remote imaging infrastructure for ail of the top 50 banks and over 5,050 other financial institutions. DeBello predicts that one of the next transaction types to move to mobile will be commercial deposits.

"Remote deposit as it exists today has only scratched the surface," says DeBello. "The next wave is in pilot at several financial institutions. Remote deposit for business allows multi-check capture. So, rather than singularly snapping a check photo, you can take multiple photos of the front and back of five or 10 checks. A single deposit is made summing the total of the checks, providing the user with a summary of those checks as they would a deposit slip. Your accounts receivable clerk is saving time, you're saving money on courier services and the money is in the bank faster."

Account openings

Robb Gaynor is the chief product officer at Malauzai, working with over 420 banks ranging in size from $20 million to $11 billion in assets. Forty percent of the mobile customers at these banks are mobile-only. Fie predicts that one of the next mobile features to affect branch usage will be in the area of account openings.

"With advances in image capture and ID verification, it takes about five minutes to open an account on your smart phone. In the past, there have been abandonment rates as high as 30-40 percent on mobile account openings as consumers quickly tired of entering information. …

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