Mobile channels are supposed to improve convenience, but most mobile banking apps have fallen flat. According to a recent Magnify Money report published in The Financial Brand, consumers gave mobile banking apps an average rating of 3.7 out of 5, a merely average 74% score.
The culprit is friction – all of that red tape that kills convenience. Eliminating friction is the primary objective of POPi/o Mobile Video Cloud’s video banking solution. We’ve been thrilled to hear how our clients have utilized mobile video to reduce friction and create a better experience that builds sales and brand loyalty.
Here are four common convenience killers and ways mobile video can eliminate them.
We’ve all seen the dismal online and mobile loan application abandonment rates, which can be as high as 98%. When Southwest Financial FCU launched POPi/o in September 2017, its primary goal was to increase loan volume by decreasing friction in the lending process due to the credit union’s largely remote membership. In particular, Southwest Financial was still asking consumers to fax signed loan documents to complete applications. The result was a frustrating 80% loan application abandonment rate. Consumers were put off by the inconvenient process, and employees were wasting time calling to follow up on docs that never arrived. With POPi/o video banking, loan apps are signed, sealed and delivered with just one call.
Wire fraud is a big problem for financial institutions, with losses at mid-sized banks and credit unions running as high as tens of thousands of dollars per month. In July, the FBI issued an alert warning against a new scam in which a bad actor accesses a legitimate email account to request unauthorized wire transfers. The FBI reported that there have been more than 41,000 victims in the U.S. alone, accounting for a total of $3 billion in fraudulent wire transfers. Many of our clients use video banking to verify wire transfers. Not only does video banking make verification compliance more convenient for consumers, the institution can also use facial identification to confirm it’s really their consumer requesting the transaction.
As consumers, we’ve all experienced poorly designed apps that aren’t intuitively organized and don’t provide the information we need. We may spend a few moments trying to navigate around the app to find what we want, but it doesn’t take long before we abandon the effort. Video banking isn’t an end-all solution for a poorly designed banking app, but it can reduce friction by providing quick and easy access to subject matter experts. South Bay Credit Union uses POPi/o video banking to provide fast, face-to-face access with experts, who may be located centrally or in a branch. No matter where consumers are, they can connect instantly, with no navigational friction involved.
Taking navigation one step further, if a consumer experiences a technical problem or questions a transaction using a mobile banking app, immediate access to a service representative isn’t always available. POPi/o Video Banking not only provides immediate face-to-face service, representatives can utilize the app’s screenshare feature. This enables your employees to show – not just tell – consumers how to resolve issues. POPi/o Video Banking is also very helpful when assisting consumers who don’t speak English. Pioneer Federal Credit Union uses POPi/o Video Banking to assist Spanish speaking members, who often want branch service but sometimes arrive to find no bilingual employee on duty. Video banking allows the credit union to draw upon its centralized staff to quickly find a bilingual employee, providing clear communication to non-English speakers in any branch, or wherever they may be.
What happens next? You slay even more.
POPi/o Video Banking eliminates nearly all mobile convenience killers. Our bank and credit union clients continue to impress us with the innovative ways they’re using our solution to reduce friction and improve their consumer experience. If your brand loyalty is on the ropes because of a convenience killer, give us a call. We can bring your mobile service experience back to life.