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Forrester: Financial firms should adjust application strategies

Sep 18, 2013 Dave King

The proliferation of mobile devices is affecting a number of industries, including the financial services sector. More banks, short term lending companies and other fiduciary enterprises need to find ways to take advantage of the increase in mobile device adoption among consumers.

Data recently released by Forrester suggests that many financial outlets are becoming more focused on creating online and mobile tools for the customers. The source surveyed 113 financial leaders and found that the top priority for business application development is in the field of big data analytics, with 44 percent of respondents listing it as a top focal point.

Building the infrastructure to support apps was listed by 34 percent of respondents as a concern and establishing multichannel solutions is important to 31 percent of financial experts. Other highly ranked fields for app development in the financial industry include mobile banking programs, internet banking and payment services, indicating that financial firms are starting to embrace emerging technology.

Jost Hoppermann of Forrester stated that banks and lending firms that fail to invest in innovative application developments will likely see their business suffer.

"Firms with no intentions to work on transformation will soon face a more challenging competitive environment as their peers address business requirements faster and more cost effectively," he indicated in a separate article.

Capture younger consumers
Capturing young customers who will be able to provide years of business is a top priority for many companies. By implementing mobile and online tools into their operations, financial firms may be able to attract consumers from more recent generations.

PYMNTS recently cited data from Market Rate that found younger generations are less likely to use in-person banking services than older generations. Because they have been raised in a world where advances in technology have been introduced at a rapid rate, millennial consumers are comfortable with using new tools and services.

When it comes to banking, industry leaders need to be ready to invest in mobile and online services. Young people are avoiding traditional banking models, meaning that financial firms need to adjust their practices. With mobility increasing, smartphone and tablet apps that allow consumers to make transactions may be the solution banking enterprises need to connect with emerging customers.

Initial investments required to create such services may make some financial leaders hesitant to implement tech-driven tools. However, once established, mobile and online apps will help banking and lending outlets bring in new customers.