While you’ll never be able to exactly deposit or get cash from your handset, your mobile phone might just make many other trips to the bank unnecessary. Pete Daffern, CEO of Clairmail, offers his thoughts on how banking will evolve in your hands.
Daffern was previously CEO of technology company Purisma, where he directed the company’s strategy and operations with a focus on growth through valuable solutions, customer service and business development initiatives. Before Purisma, Pete was President of AIM Technology, a provider of applications for contact centers. He holds a Bachelor of Science degree in Mathematics (Honors) from Sheffield University in England. Here is what he had to say about the state of mobile banking.
AllBusiness: Given that mobile has greater adoption at this point than broadband, do you think it might be possible that some consumers might skip the computer banking and go straight to the handset banking?
Pete Daffern: No question. Some people in the industry have approached mobile banking as an offshoot of online banking, assuming that potential mobile banking customers will come to mobile services via their online experience. However, online banking overall still has less than 40% bank customer penetration on average. On the other hand nearly 100% of bank customers have a mobile handset and more and more that handset is also the computer in their pocket. The mobile device provides an unprecedented opportunity to provide banking services to all bank customers – even the unbanked – anytime or anywhere. By offering mobile banking enrollment through all customer interaction channels – whether it be via the mobile phone, the bank branch, online, or via the call center – we see mobile banking adoption ramping toward that 100% of all bank customers, not a subset of 40%.
AllBusiness: Could you offer any advantages that mobile banking has over other methods, notably in person banking or banking via the computer?
Pete Daffern: Mobile is the first channel that allows a bank to proactively, economically and in a timely fashion reach out to customers, rather than relying on customers to initiate an online session, call, branch or ATM visit. This is a huge advantage that delivers customers more personal and timely information about their finances as well as exposure to new and relevant bank products. Through this proactive communications channel Mobile banking also enables the bank to develop a deeper relationship with their customers resulting in lower churn.
Unlike any other channel mobile banking allows you to have complete control and real-time understanding of your personal finances. More and more bank customers are seeing these offerings as core to choosing and sticking with a financial institution.
AllBusiness.com: Given that there are endless security threats including phishing scams, many of which haven’t made it to mobile, what can you do to keep customers safe?
Pete Daffern: There are natural security concerns around every new technology offering, and this is especially true around personal finance. However, for mobile banking it begins with a financial institution implementing a well-thought out mobile strategy and addressing these sorts of concerns with customers along with features and benefits.