Effective wallet strategies give financial institutions an edge in a mobile centric world


Financial Institutions' Mobile Wallet Strategies are becoming a top concern as banking is more frequently completed via mobile wallets. According to an article on PaymentsSource.com, 2.6 billion people in the world now own smartphones, and by 2020 that number is likely to jump to 6.1 billion, or 70 percent of the world's population. Further, it is now estimated that 69 percent of mobile users conduct their banking via their mobile device, or "mobile wallet."

Pymnts.com reports that, according to a study by Javelin, in 2014 most people who conducted banking via their mobile wallets did so using their financial institutions' mobile banking app. However, in 2015, this trend changed, and PayPal and Visa apps surpassed financial institution apps as the preferred mobile wallet providers. This new trend tends to leave financial institutions "out of the loop" when it comes to mobile wallet transactions. Further, rather than developing their own mobile wallet-friendly apps, they are relying on third parties such as Apple Pay and Android Pay.

So how can financial institutions step up their game? First, they will have to modify their perception of customer service to pertain to mobile interaction, placing less emphasis on factors like bank location and face-to-face interaction and more emphasis on factors like app development. Second, according to an article in Mobile Payments Today, financial institutions should develop "stepping-stones" toward the mobile scene, such as cardless ATMs. Finally, according to the same article, financial institutions should implement customer value and loyalty programs for customers who use their apps. 

Netclearance offers products, a plan, and the technology that is synonymous with the mobile wallet. As consumers choose to pay daily using their cell phones at various merchant locations, it is time for financial institutions to extend their arm of influence and corner this market. Facilitated by mBeaconPay technology, Netclearance eliminates the middle man so common in these transactions and offers a streamlined system between only the customer, the merchant, and the bank.