You do a lot of research on financial services. What have you found?
The most interesting thing going on in financial services today is how mobile is changing the way consumers interact with banking and investments. Consumers are using their mobile devices to access their bank accounts, move money, and pay bills.
Isn’t that what consumers have been doing for years on personal computers?
It’s what they have been doing online, except what mobile does is change the time and place. So rather than doing it at home at night when you are trying to put the kids to bed, you can do it on the train going into work. What’s interesting in the research is how important mobile banking capability has become to consumers.
Customers are switching banks because of it?
We are absolutely seeing customers switching banks. We are seeing consumers decide where to go based on mobile and we are seeing customers change where they bank based on mobile.
What banks are benefiting?
The big winners today are Bank of America, JPMorgan Chase, and Wells Fargo.
What matters most in picking a bank?
It’s convenience, it’s price, and it’s service. The products are pretty common among providers. Convenience is where the innovation always takes place. You’ve seen that in ATMs, online, and, today, one would argue, in mobile.
Would you expect banks to continue closing branches?
There is no question that retail branches are the most expensive part of banking. You are going to see banks be able to reduce the amount of branches because consumers don’t require them as much.
You mentioned price is a factor. How easy is it for consumers to compare the cost of banks?
Unfortunately, not as easy as it should be. And consumers don’t comparison shop as often as they probably should. With the new disclosure requirements, it will be easier and the Internet also makes it a lot easier. What we tell our clients is the more straightforward and transparent you can make your pricing, the better. That’s what consumers want.
Who’s doing a good job?
