Are Banks Ready for the Smartphone Revolution?: U.S. Bancorp (USB) and More

Banks need to get on the smartphone-banking bandwagon
As banks close branch locations, mobile banking becomes an even more important way for institutions to retain customers, and attract new ones. While offerings such as mobile deposit are considered “table stakes,” that don’t necessarily give the particular banks an edge over others, there are good reasons to continue improving the quantity and the quality of these mobile services — and to give customers the features they clamor for.

One very good reason is cost. While transactions involving tellers cost the banks nearly $4 a pop, online and mobile transactions weigh in at a mere $0.56.

Another is that, since almost half of smartphone users reported that mobile offerings factored heavily in their decision to switch banks, keeping customers now seems dependent upon making these services available.

Some banks have heeded the call for more personalized features for smartphones. PNC Financial Services (NYSE:PNC), for instance, has developed a smartphone app that notifies customers of activity on their accounts, and privately held Dollar Bank allows customers to sign up for alerts for account activity, balance levels, and bill payments.

Why is PNC so well-informed regarding customers’ needs? Simply put, it makes an effort to keep up with consumer demands. PNC officials note that the bank keeps up with new technology, but more importantly, it pays attention to consumers themselves. The bank constantly monitors Facebook and Twitter to garner feedback and gauge developing trends, thus giving it an edge.

Will other banks take PNC’s lead? If they want to stay competitive, they will. PNC has proved that it’s really not that hard to find out what consumers want. If banks are serious about fostering long-term relationships with their customers, they will take the time and make the effort necessary to make smartphone banking more convenient — and save themselves money in the process.

The article Are Banks Ready for the Smartphone Revolution? originally appeared on Fool.com and is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase, PNC Financial Services, and Wells Fargo.

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