Bank clients are increasingly switching financial institutions when they become frustrated or disappointed by their mobile banking experiences.  

In fact, one in three users younger than 40 said they have switched banks for a better mobile experience, according to the “Bank to the Future” report published Dec. 15 by Stockholm-based mobile software company Sinch, which surveyed 2,900 banking consumers globally. The report details challenges digital banking users encountered in 2022 and how FIs can increase their ability to retain customers and attract new ones. 

Banks need to keep pace

Millennial and Gen Z banking customers in their 20s and 30s are more likely to switch banks if the mobile experience is not up to par, according to the report, which also found:

• 53% were frustrated when they received a text message from their bank that they could not reply to; and 
• Nearly 90% said they would like to receive individualized financial advice from their bank. 

  

As digital user numbers continue to rise, banks must keep pace with the changing needs of their customers. For example, Bank of Montreal (BMO) reported a 6% year-over-year increase in its active digital users to 3.7 million during the third quarter of 2022, and TD Bank’s mobile users grew 10% YoY to more than 10 million North American mobile users.  

Revamping the offerings

To meet digital demand, banks have started to redesign their mobile offerings, or even switch vendors to help cater to the needs of their customers. 

Fifth Third Bank, for one, announced at the end of 2022 during its Q3 earnings call that it had relaunched its mobile app in a “new cloud-based architecture with several improvements [for a better] user experience,” Chris Doll, senior vice president and head of investor relations at Fifth Third, said during the call. 

And Citizens Financial Group committed to augmenting the customer experience via self-service features in its app to reduce call center volumes along with offering digital cards, Chief Financial Officer John Woods said during the bank’s Q3 earnings call. 

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