Popular shopping, social media and delivery apps are influencing consumers’ expectations in ways that matter to community banks and credit unions. Creating an effective user experience in a mobile banking app means that on some level, financial institutions have to compete on a playing field shaped by brands like Uber and TikTok.
“Whether we like it or not, the likes of Amazon and other popular apps drive a lot of expectations for consumers,” says Mark Donovan, chief operating officer at Illinois National Bancorp in Springfield, Illinois.
For its subsidiary, the $2.4 billion INB, and other similarly situated banks, that means that intuitive design has to factor into any conversation about the bank’s self-service mobile application. Intuitive design essentially means that an app feels natural to use, is easy to understand and navigate, and doesn’t require the user to overcome a steep learning curve. Fundamentally, it matches the users’ expectations and behaviors based on past experiences with similar systems.
Beyond shaping consumer expectations, increasingly bankers view some large retailers — ones with deep pockets that can invest in their digital channels — as competitors, especially in the payments space. Bank Director’s 2024 Technology Survey found that 12% of bank leaders considered retailers, such as Amazon.com and Walmart, as a competitive threat. That’s up from 5% in 2023.
In addition to that, a majority of consumers (55%) said they used their banks’ mobile app on a phone or tablet the most frequently to manage their accounts, which was significantly higher than any other channel, including branches or even online on a laptop, according to a national survey from the American Bankers Association.
Given these realities, it’s safe to assume that the effectiveness of an institution’s mobile app is at least a factor for some consumers when they decide where to bank. That means bankers like Donovan must not only prioritize security in those channels, but they also have to present a digital experience on par with retailers and big banks alike.
“That’s the fulcrum you’re balancing on,” Donovan says. “How do you provide an almost shopping-like, enjoyable experience while maintaining security?”
To learn more about making mobile banking apps intuitive for customers to use, download the report, sponsored by CSI, here.
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