Money & Banking

Customers use less than 50% of mobile banking features: FSS study

NARAYANAN V Chennai | Updated on September 20, 2019 Published on September 20, 2019

Customers are using less than 50 per cent of the features available in the mobile banking apps, according to a report published by global payments technology company FSS (Financial Software and Systems).

According to the study, ‘FSS Digital Banking Trends - 2019’, most banks offer 200 plus transaction sets and continue to expand through new use cases, technologies, and transaction types. However, customers use merely 50 per cent of available services.

Plethora of services

Banks have introduced a wide array of services, but financial product marketers need to strengthen monetisation capabilities by moving away from utility-driven, one-size-fits-all approach and introduce segmented tailored offerings, the report noted.

“Banks are competing to provide all type of services in their apps but I think they are not doing enough to promote the services to customers,” Suresh Rajagopalan, President-Retail Payments, FSS, told BusinessLine.

According to the report, which analysed mobile banking trends and customer use pattern between January and June, a total of 292.6 million transactions were processed by FSS with a monthly average of 49 million transactions. The study covers 12 banks which uses FSS’ mobile banking solutions.

Transaction break-up

“The average monthly transactions for the same period last year was around 25 million which has nearly doubled this year,” Rajagopalan said.

Of the total number of transactions, financial transactions accounted for only around 22 per cent, while non-financial transactions such as PIN validation, balance enquiry and mini statement generation constituted 75 per cent of total transaction.

Instant fund transfers leveraging IMPS technology accounted for 97 per cent of the total financial transactions.

While this is aiding banks in deflecting traffic from expensive branch-led and self-serve channels such as IVR and rationalising the cost to serve, the revenue-generating up-sell and cross-sell capabilities offered by mobile as a tool needs to be maximised, the report noted.

Total transactions in value terms stood at $8.79 billion at a monthly average of $1.5 billion.

According to the report, 4.2 million unique customers used mobile banking every month. While 64.13 per cent of the customers perform between 1 and 3 monthly transactions, only 11.04 per cent customers perform more than 10 transactions a month. On an average, 140,000 customer registrations are recorded every month.

The study also revealed that only 60 per cent of the registered customers are actively using the mobile banking app.

Published on September 20, 2019
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