Preaching to the converted
Financial institutions continue to target clients who have already adopted digital mobile services
“Hey Elaine, now you can transfer funds to another mobile number”. Ryan was excited, finally she would stop asking him to pay for the things she bought on facebook. “I haven’t even downloaded my bank’s mobile application Ryan”, Elaine was quick to respond, “Please make a few payments for me”.
Elaine is not alone, Ryan’s dad Dr.Lee, his neighbour David and the friendly Mr.Wong at Ryan’s favorite childhood bakery have also not bothered to use mobile banking or mobile payments.
They clearly are neither innovators nor early adopters of new technology. However are financial institutions trying to ascertain if they are early majority, late majority or laggards? And more importantly are they designing communication and programs to accelerate the technology adoption in these groups?
What is the current approach?
A quick look at the current communication shows that it seems to be constantly directed to those who have already adopted the technology, therefore driving more usage of multiple mobile financial services from the same cohort of innovators and early adopters, with few incremental users from other cohorts.
Another simple assumption seems to be that adding new features to mobile services will drive significant new penetration into the late adoption cohorts. This assumption needs to be seriously challenged.
Sample this
A recent industry-wide initiative on person to person payments to mobile numbers resulted in the following press advertisements
None of the campaigns address concerns around security or make an attempt to educate clients on how to sign up for mobile banking itself. Elaine, Dr.Lee or Mr.Wong are unlikely to be tempted.
What’s causing the resistance?
Adoption from late majority and laggards can potentially be accelerated by understanding their core concerns and designing communications and programs to address the same.
For instance Elaine simply does not feel mobile payments are secure. “What happens if I lose my mobile phone?” — Unsure of security
David was put off using mobile payments because his card on file for a taxi app was overcharged “ Its a bad idea to use these fancy mobile wallets, the cab company has all credit card details now” — Privacy concerns
Dr.Lee took some time to master the personal computer, with a little help he can be conversant with smartphone apps as well. “Only if I had some help understanding these new banking apps” — Handholding required
And finally Mr.Wong waves off anything to do with mobile payments “I simply don’t find them convenient, why can’t I just write cheques and accept cash?” — Contentment with existing modes of payments
A demographic view does not yield better results either. While it may be a good idea to focus on millennials, a recent study1 shows only a 67% penetration of mobile banking in this group in Singapore as compared to 78% in the United States and 75% in China.
Accelerate the adoption
What needs to be done to accelerate the adoption lifecycle for mobile financial services?
Address the key concerns
Alleviate the concerns around security and privacy. The fact that mobile financial solutions go through very high standards of security and privacy requirements is not communicated enough to clients.
Here is a great example of the messaging on security https://youtu.be/vvcrxFF0I44
While stand-alone campaigns may not always be feasible, messaging around security can be iconised and re-iterated across multiple channels and campaigns of the financial institution.
This should move the needle on accelerated adoption by millennials such as Elaine and David.
Design programs not just campaigns
For clients such as Dr.Lee and Mr.Wong a press ad may not be enough. Branch and community outreach programs can be designed to hand-hold them on their digital journey. Partnership across the ecosystem will be required for the laggards to cross the chasm of digital adoption. Dr.Lee’s relationship manager could help him to take the leap and a discussion with the new food delivery company may convince Mr.Wong to accept digital payments that would increase his business
Mobile first or client first?
While most financial institutions recognise the need to adopt a ‘mobile first’ strategy, this is translating to introductions of multiple mobile banking applications ,digital wallets and payment solutions. The focus perhaps should on integrating with the mobile applications clients are already using such as popular messaging apps and social media. Elaine for sure will be delighted to use her facebook credentials to authenticate her financial transactions.
References
1 — http://www.todayonline.com/business/spore-playing-catch-mobile-banking-use-study
Disclaimer: The views expressed here are my own and not representative of my organisation in any way
