FICO Survey: Mobile Banking Drives Customer Loyalty and Satisfaction

SAN JOSE, Calif., July 30, 2014  /PRNewswire/ -- A comprehensive survey of U.S. bank customers conducted for FICO (NYSE:FICO), a leading predictive analytics and decision management software company, found that 82 percent of mobile banking app users are satisfied with their bank, compared with only 71 percent among those who do not use a mobile banking app, and 76 percent of the mobile app users are likely to recommend their bank, compared with only 67 percent of the non-users.

"Mobile apps present a tremendous opportunity for banks to grow customer loyalty and add value," said David Vonk, who leads the North American banking practice at FICO. "Banks that have made the mobile investment need to encourage their customers to actually use their mobile app, especially as busy consumers, especially Millennials, use smartphones and tablets to manage all aspects of their lives."

The survey also found large generational differences in the way customers interact with their banks that could have business implications. Specifically, 70 percent of Millennials, aged 25-34, said they use mobile bank apps. The percentage fell to 54 percent for customers aged 35-49. Among customers aged 50 or older, just 36 percent said they used their banks' mobile apps.

In addition, Millennials were more likely than older customers to interact with their banks via text messaging. While 16 percent of Millennials expressed a preference for texting over other means of communication, 9 percent of customers aged 35-49 and 5 percent of customers 50 or older expressed that preference.

Regarding the actual usage of mobile banking apps, 63 percent of Millennials surveyed used their banks' mobile apps. The percentage dropped to 54 for people aged 35-49, and to 36 percent for people aged 50 or older.

"With pressure growing from mobile and web-based financial service providers, traditional banks are finding it extremely important to keep existing customers engaged and satisfied," said Vonk. "Mobile apps give banks the opportunity for frequent, positive interactions with customers, especially Millennials, an even larger generation than the Baby Boomers. It's an opportunity banks can't afford to miss."

The survey of 991 U.S. banking customers was conducted online between March 5 and March 15, 2014.

About FICO

FICO (NYSE: FICO) is a leading analytics software company, helping businesses in 90+ countries make better decisions that drive higher levels of growth, profitability and customer satisfaction. The company's groundbreaking use of Big Data and mathematical algorithms to predict consumer behavior has transformed entire industries. FICO provides analytics software and tools used across multiple industries to manage risk, fight fraud, build more profitable customer relationships, optimize operations and meet strict government regulations. Many of our products reach industry-wide adoption. These include the FICO^® Score, the standard measure of consumer credit risk in the United States. FICO solutions leverage open-source standards and cloud computing to maximize flexibility, speed deployment and reduce costs. The company also helps millions of people manage their personal credit health.

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SOURCE FICO