Thought Leadership

Mobile-Only Banking Could Leave Community Banks Insignificant

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August 2, 2018
Mobile-Only Banking Could Leave Community Banks Insignificant
By Bryan Adler

We take a look into how major financial institutions are enhancing their product offering and banking experiences for their customers through the use of mobile banking.

 

JPMorgan Chase has rolled-out their first mobile-only bank called Finn that allows customers to digitally control their savings, view their monthly spending trends, and rate their spending history, all with no monthly savings or checking fees.

Pretty soon, this is the way all major financial institutions will capture their customers. This is how big banks are going to acquire customers in markets they are not physically in. And in the future, mobile banking will be a widely accepted and probably the most common form of personal financial management.

Afterall, Chase has been working closely with groups of millenials for more than a year to understand their banking habits and most apparent needs. So it comes to no surprise that a business so focused on their customers demands, would make a slick and glossy front end automation system like Finn. The biggest advantage that Finn has, which is by far the smartest thing Chase can do with an app like this, is listen to their customers to continuously update and improve features.

Finn continues to listen to the feedback of their customers and always look into adding new features that they are demanding.

It’s pretty clear that the future of banking is moving toward online-only and mobile-only functionality softwares. So with major financial institutions, like JPMorgan Chase creating apps that their customers can use to handle all their personal banking needs, why would a customer feel inclined to become a customer at a community bank or credit union when they have something like Finn at the their fingertips?  

That’s the whole point. Community banks are getting left behind, but by the time they realize it, it’s going to be too late to catch up.

Customers are demanding a simpler, quicker, and digitized way of banking and that is exactly what Chase is providing them. Soon, all the big banks will too, so it’s up to smaller community financial institutions to adopt the same customer relationship products and technologies.

Seriously, in the future, who’s to say that customers are going to stay with their traditional banks when there are other services that allow them to easily and intuitively manage their personal finances with no monthly fees or costs?

It’s going to leave community banks irrelevant, unless they can play ahead of the game and use technology to provide their customers with similar competitive products that offer the same quick and slick experiences.

Vetter, a digital banking platform, offers growth products to community banks around the country who are trying to expose new customer channels, increase their loan to deposit ratios, and increase their C&I market share.

Similarly to Chase Finn, which allows customers to create a mobile bank account funded in seconds, Vetter’s turnkey digital branch allows community banks to market to potential customers. Through our marketing platform, we create a seamless channel for new customers to create a bank account on their tech device, become KYC and AML verified, and then link an existing account to transfer money.

All in a matter of minutes and three easy steps, banks use Vetter to increase their new accounts rate without having to do any extra work or spend excessive amounts of money.

Don’t let your bank fall behind the rapidly moving technology industry. CFIs are needed to support small businesses and the growth of communities all across America; offer them a proud product that is convenient and exciting to use.

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