Many banks are turning their heads toward the mobile banking environment in order to implement fees for mobile services that will make up for the lost revenues that the financial institutions have faced from the consumer protection regulations that have just been put into effect.
Banks have embraced mobile services with open arms due to its cost effectiveness, regardless of the fact that the consumer adoption rates remain limited. That said, as a number of banks are reportedly thinking about adding significant fees – for example, a remote deposit capture charge of $5 – industry analysts and experts are now wondering what effect this new variable will have on the overall adoption rate of mobile banking.
According to financial services senior associate, Jennifer Canfield, from Boston-based Compete Inc., a web traffic analysis service, boosting the fees for the use of mobile banking services will definitely have a slowing effect on consumer adoption.
She added that since there is a high ROI for mobile banking, and as there is still a low adoption, intent to adopt, and even awareness of the services in general, “banks should focus on building awareness and encouraging adoption, not putting up more barriers.” Canfield also explained that banks could better encourage the adoption of the use of mobile services by setting the limitations of the infrastructure, building its security, and “above all” offering incentives for its use.
Moreover, she said that the alliances among retailers, card issuers, and banks, which offer consumers shopping incentives and rewards in real-time, provide those shoppers with a desire to give the new technology a try.