Community banks use mobile banking apps to reach out to younger customers: community banks are starting to add mobile banking apps to their existing text-based and mobile browser services.

• Position: MARKETING NEWS

An example of a bank that has gone this route is Royal Banks of Missouri (assets: $337 million), University City, Mo.

The primary benefit of apps over text and browser mobile banking is ease-of-use, says Steve DuPerrieu, director of product marketing for Computer Services Inc. (CSI), the core banking provider for Royal Banks of Missouri. Buttons and finger swipes allow quick access to common tasks, such as bill pay, funds transfers, balance inquiry and other banking tasks, he notes.

"Apps are everywhere, and distribution is easy through both direct downloads and app stores," DuPerrieu adds.

"Apps also enhance marketing, because messages can be customized to fit individual users, providing the ability to target marketing messages to the most receptive audiences. The 'coolness factor' of customization can also lead to customers sharing and comparing apps with their friends."

One of the reasons that the bank introduced a mobile banking app is that it wanted to attract younger customers and, it realized, the way to reach younger customers was through their smartphone, says Michael Stevenson, senior vice president and senior retail banking officer. "Younger customers are three times more likely to engage the bank via a smartphone than older customers."

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"We wanted to market within the mobile channel, and our SMS text and browser-based mobile offering didn't allow us to market using mobile nor did it engage or excite younger customers," says Stevenson. "We wanted to be the Wayne Gretzky of bank marketing--to skate to where the puck is going to be. Banking is going to the smartphone, so we wanted to market within this channel early."

The bank uses Malauzai Software's SmartApp mobile banking platform.

The bank uses the app to create marketing messages that are delivered...