SAN FRANCISCO—It’s not enough to simply offer mobile deposit—the user experience has to be exceptional, contends one research firm that says if credit unions don’t get it right they will be left behind not only in mobile banking, but in mobile payments as well.
Jim Van Dyke, CEO of Futurion, told CUToday.info that his company’s recently completed study—The 2016 Mobile Deposit Benchmark Report—shows a strong correlation between the mobile deposit user experience and adoption of the service.
“Nearly three-quarters of a financial institution’s mobile deposit adoption and usage can be predicted by the quality of their user experience, demonstrating that quality user experiences are more important for adoption than even the users’ age,” said Van Dyke.
Van Dyke said that going into the study, which grades 15 of the top banks across 12 critical categories that impact the customer experience with mobile deposit, Futurion expected the correlation between the mobile deposit user experience and adoption of the service to be strong—but not nearly as high as the data showed.
“From a statistical perspective, the correlation between the two was higher than we could have ever imagined,” said Van Dyke. “This correlation came in at .72, and 1.0 is the highest it can be. So what this says is that as you improve the user experience of mobile deposit you will see more adoption of the service.”
Get Basics Right
The importance of mobile deposit in users’ adoption of mobile banking is clear. But Van Dyke said that if a user does not see the credit union or bank as having a viable mobile deposit solution, and therefore holding the same opinion for mobile banking, that their chance of being that individual’s choice for mobile payments declines as well.
“If you are not competing in mobile deposits, getting the basics right, you won’t be invited to the big dance, which is mobile payments,” said Van Dyke, who added that mobile payments at the point of sale are expected to rapidly accelerate in the coming years.
The Futurion study shows that five big banks are the leaders in mobile deposit user experience. Capital One was found to provide the best overall experience. BBVA, Bank of America, Fifth Third Bank and Wells Fargo rounded out the top five FIs that have exceeded the majority of their customers’ mobile deposit expectations. Citibank, Navy Federal Credit Union, Citizens Bank, BB&T and Regions Bank landed in the bottom five.
Van Dyke emphasized that what the top five FIs are doing right in terms of user experience is getting the “standards” right.
“They are consistent,” said Van Dyke, referring to the mobile deposit application’s look and feel, how information is displayed on the screen, and terminology used.
The top five, too, don’t have restrictive limits on deposits via the phone. While limits are not similar to those at ATMs or branches, where there are often no deposit limits, the mobile deposit limits at these leading FIs do not get in the way of the needs of their mobile users, noted Van Dyke, who said limits at these banks are often around $5,000. He added that he hopes someday mobile deposit limits will more closely resemble those used in branches and at ATMs.
Autofocus Apps
Applications that autofocus the phone’s camera to ensure a clear image is taken of the check improve the user experience, as well, added Van Dyke. He said that most of the top five FIs in the study provide that functionality.
“Surprisingly Chase does not offer that functionality, and it is their most glaring weakness,” said Van Dyke. “That capability is important because it makes the mobile deposit experience seamless. But right now, among all the FIs in the study, the use of this application was mixed—meaning some have it and some don’t.”