Leveraging mobile technology: while there has been tremendous growth in mobile banking adoption, most banks are not fully taking advantage of the technology's capacity to enhance customer experience.

• Author: Ramirez, Steven J.

FACED WITH a CONFUSING ARRAY OF PRODUCT AND PRICING CHOICES, consumers have learned that their smartphone is their best friend. A recent study from the Federal Reserve indicated that 44 percent of smartphone users have comparison shopped with their phone while in a retail store.

Of those savvy, mobile-equipped shoppers, 68 percent changed where they made a purchase based on their instant research. With mobile technology fundamentally changing the way people choose and buy, is banking subject to these same dynamics? How long before visitors to your branch are comparing credit card terms or checking account packages via their smartphone, as they sit across the desk from a banker?

With the widespread adoption of mobile technology has come the realization that information can be available in an instant. Even more to the point, with a smartphone, you can receive exactly the information you need in precisely the moment that you need it. Google Maps can advise you on real-time traffic conditions; Amazon can provide pricing and product reviews; and Facebook allows you to message a friend to obtain advice you can trust. These companies have set the bar high when it comes to delivering on the promise of mobile. When your customers evaluate the experience they have with you, they aren't just comparing your company to other financial institutions but with all other types of retail businesses.

According to the Fed's research, in the U.S., more than half of the people who own a smartphone have used their device for mobile banking. Currently, these users are sticking to the basics: Ninety-three percent are checking balances and recent transactions. Fifty-seven percent are transferring money between accounts. Additionally, 24 percent have made a mobile payment in the last 12 months.

While there has been tremendous growth in mobile banking adoption, most banks are not fully leveraging the technology to improve the customer experience. Today, at many banks, mobile is just another channel. It is not the catalyst for growth and transformation that consumers are becoming accustomed to.

In order to successfully capitalize on mobile and social media and stay one step ahead of the competition, banks must effectively deliver customer experiences that go above and beyond yesterday's expectations. This means delivering personalized solutions that incorporate mobile and social media, enabling consumers to engage with banking products and services wherever and whenever...