Banks Are Now Product Companies

It used to be, you chose a bank based on a few important and varying criteria; proximity to your home or business, personal relationships with employees, special offerings that other banks weren’t offering, whether or not the bank gave you a free football phone when opening a checking account, etc.

But these days, that criteria doesn’t really impact our decision making. Most banks have the same offerings. We don’t mind if our bank is in our neighborhood, or even if it has a branch at all. Customers using mobile banking has risen to 51% and more than 27% of Millennials (whatever that means today) are completely reliant on mobile banking, paving the way for the mass adoption of branch-less banks like Ally and Simple. Because of this, traditional banks need to keep up. They’re offering more mobile options and pushing mobile over physical banking (with card-less ATM transactions on the way) to keep up with trends. Many branches are closing or downsizing, due to a large percentage of customers doing most of their banking online (although branches aren’t closing as fast as it may seem).

So now banks are becoming product companies. You won’t choose you’re next bank based on location; you’ll choose your next bank because they have great mobile products.