You can have the best mobile banking app in the world, but if most of your customers aren’t using it, it doesn’t matter. In fact, research shows that seven out of 10 digital transformations fail due to low user adoption.
Digital adoption is a critical step in optimizing your financial services contact center and customer support. So, how can you increase the likelihood of success? Below, we go over the most common mistakes that hinder digital adoption in banking, and the steps you can take to overcome them.
What are the benefits of increased digital adoption in banking?
Higher digital adoption rates create a win-win situation for both customers and your bank. Some of the potential benefits of higher digital adoption rates include:
- Reduced business costs and increased savings
- Improved customer retention rates
- Higher call deflection rates
- Reduced case burdens on customer service agents
- Improvement in net promoter score (NPS) and other key metrics
The exact benefits you could see, of course, vary based on your institution’s unique goals and tools. However, the research on just how much financial institutions can save with increased digital banking adoption rates is astounding. A study by Javelin Research and Strategy found that the average mobile banking transaction costs banks just 10 cents. In contrast, in-person banking transactions cost over four dollars.
The bottom line? Prioritizing digital adoption among customers is critical to improving the customer experience and reducing business costs.
What are the most common mistakes killing digital banking adoption rates?
Although there are numerous benefits to digital banking, there are still many roadblocks that prevent customers from adopting your online banking tools. We go over a few of them below.
Outdated technology
Outdated technology, such as legacy contact center systems, can be a headache for financial institutions and customers alike, slowing digital banking adoption rates. Older technology can take a huge bite out of your budget, with companies spending an estimated $30 million annually on maintenance.
These tools also typically don’t provide the most accurate or up-to-date answers. This means customers may not get the information they need at critical moments, leading to a poor customer service experience and increased customer frustration.
However, the consequences go beyond creating headaches for customers. It can also lead to a breakdown in finance customer trust when customers are at their most vulnerable. After all, they’re trusting you as their financial institution to safeguard their pension, their checking accounts and emergency funds. If your institution doesn’t come across as reliable, customers are increasingly willing to take their money elsewhere.
Lack of digital literacy
Digital literacy can have a huge impact on your customers’ willingness to adopt new technology. For example, Gen Z, or people born between 1997 and 2012, are widely considered digital natives. They grew up in an era of smartphones and instant streaming, and are much more likely to use mobile banking.
However, by contrast, older customers, such as baby boomers, are less likely to use in-app customer support. A little over a third of baby boomers say that they primarily use mobile apps for banking activities. This is a stark contrast to 63% of Gen Z. Customers with low digital literacy may not feel confident using online banking or other services, which means they may require more customer support, increasing call volume and slowing digital adoption rates.
Treating accessibility as optional instead of a necessity
Did you know that one in four Americans has a disability? If your online banking or other digital products aren’t accessible, you might accidentally be alienating 25% of your customer base. For example, while you ideally want your app to match your company’s brand colors, certain colors can create hardships for customers with visual impairments.
Therefore, you may want to consider options that let customers choose high-contrast color schemes to use your digital services better. This can be critical for people with disabilities to maintain financial independence.
Additionally, only about 13% of U.S. banking apps offer the option to customize language settings. A simple online banking transaction can become unnecessarily stressful if the customer has to do it in a language they’re not comfortable with. The key takeaway? If your website and app aren’t accessible to customers, your digital adoption rates may suffer.
Customer habits
While this may not technically be a mistake, customer habits can have a dramatic impact on your digital adoption rates. People are creatures of habit and often resist change, such as new technology. If your customers have been calling to check their balance or visiting a branch to cash a check for the majority of their lives, they’re not necessarily going to start using mobile check deposits as soon as the feature becomes available.
Instead, they’re likely to continue visiting your physical branch or calling over the phone. It’s not that they’re against digital services, but we as people like to do what we’re most comfortable with. New technology means disrupting routines. Banks looking to improve digital adoption rates will need to find a gentle way to introduce new habits to customers.
How can you increase digital adoption in banking?
Previously, we went over some of the barriers to digital adoption. Next, let’s dive into the steps you can take to increase digital banking adoption among your customers.
Leverage interactive tutorials
First, use interactive tutorials to encourage digital adoption with your customers. Interactive tutorials can be an effective tool for increasing digital adoption rates. Traditional, static FAQ articles aren’t always the most effective strategy for customer education. Humans tend to be more visual learners. In fact, nearly two-thirds of people say they’re visual learners. That means that static text-based materials aren’t the most effective mode of delivery for banking support.
Additionally, research shows that 43% of customers say they prefer interactive tutorials to other forms of content. That’s often because interactive learning improves retention of information. These tutorials show customers what to press and where. They can slow it down or speed it up to fit their unique needs. That’s why it’s no surprise that interactive tutorials can lead to a boost in customer engagement. Research has shown that interactive video content increases engagement by over 50%. Using interactive content can empower customers to use new technology with confidence by letting them learn at their own pace.
Prioritize accessibility
Accessibility is no longer a nice-to-have, but a must-have for digital banking. Yet, as mentioned earlier, few banks implement some of the critical accessibility features that customers desperately need. This can create a poor customer service experience that could potentially negatively impact customer retention rates.
However, the good news is by creating accessible digital experiences, you can not only improve digital adoption rates, but could potentially differentiate your bank from the competition. So, how do you ensure that your digital experiences are accessible? Here are a few best practices:
- Allow customers to choose their preferred language
- Be mindful of color contrasts
- Choose accessible fonts, such as Arial
- Avoid using small text that may be difficult to read
- Use screen readers
Create digital literacy learning resources
Create guides and leverage your interactive content to help customers navigate online banking and other digital products you offer. Or, if your older customers tend to come into your physical branches, consider offering workshops where customer service agents and other staff can show them how to use your apps and other digital services.
This can redirect customers to your digital platforms for future service interactions. It also helps you meet them where they are, so that they can become more confident in navigating your digital tools. As a result, your customers are more empowered and knowledgeable about how to navigate online banking safely. It may also lead to a reduction in customer service requests as your customers become more tech-savvy and comfortable with your digital services.
Empower customers for success
Digital adoption benefits both banks and customers alike. It often reduces business costs while improving the customer experience and streamlining finance app support. Yet, many businesses struggle to get people to use new technology. By understanding some of the most common mistakes that hinder digital adoption and the steps you can take to overcome them, you can empower customers to use digital banking with confidence.
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