The challenge of selling on banking apps
Selling on banking apps is an ongoing challenge for banks. Few providers use the pre-login and post-login space to sell financial products and services to customers. Those who do often fail to provide a fully optimised mobile application journey. This causes high drop-out rates and diminishes the effectiveness of mobile sales.
Banks are increasingly striving to be viewed as more than just financial services providers. Instead, they hope for their customers to see them as an understanding and helpful partner. Barclays’ Moments is a clear example of this type of approach. By communicating that they have the necessary support and products in place to enable customers to embark different stages of their life, Barclays is fostering confidence in their brand for customers wanting to take a big step, such as buying a home.
Barclays’ approach ensures that customers know that for every stage of their life, it has a financial product that will support them. For example, a mortgage, a car loan and even travel insurance. Other tactics include Bank of America’s promotions within the app’s landing page and Bank Zachodni WBK’s products section in its pre-login page.
Effective selling within mobile apps means that the provider is using customer data to promote useful and relevant products to the customer. This is something that is done well by Spanish Bank, Bankia. It uses both an interstitial page and a pop-up message to offer the customer a personalised loan. The language used to sell this product is persuasive as well as personalised, thus encouraging customers to view it as a truly tailored offer.
With PSD2 being rolled-out imminently, providers should gain access to a more comprehensive view of their customers’ financial data – should the customer give consent. As such, we are also expecting competition in terms of mobile sales between different players to increase. This means that that failure to effectively use the information given to them, to offer relevant and timely products and services, could mean losing out to other providers.
Simply put, in such a scenario, a customer will already have an account with the provider. By promoting personalised offers, the provider is likely to increase customer engagement. If a customer sees that the loan offer has been pre-determined and personalised, due to ease and likelihood of being approved, they are more likely to stay in-house to apply for the financial product. If the provider sells a product well, it stands to increase conversion rates.
However, there is another major pain point in this area that often impedes conversion rates – the application journey. Often, in-app application forms are not optimised. This can be seen in the ABN Amro app. Should a customer wish to apply for a savings account, for example, they are taken out of the app to complete the application within the mobile browser. A broken journey like this often logs the customer out of the banking app and extends the time taken for the customer to complete the application. Journeys, such as this, tend to increase drop-out rates.
Selling on mobile certainly needs to be improved across the board. Providers need to better utilise customer data to offer more timely and relevant offers and to ensure that the application journey is straightforward and in-app. Failure to do this means that providers risk their customers looking elsewhere for financial products and services, especially with the arrival of PSD2. We will be monitoring providers closely over the coming months as they respond to the new legislation and increased competition.