Mobile Banking: Consumer Preferences
Even with Venmo's runaway success, 42 percent of millennials prefer to use their bank's app to transfer money according to new data from Clarabridge - rather than PayPal or PayPal's popular Venmo app.
Banks, however, can quickly lose younger audiences who are sending billions of dollars via Venmo (a peer-to-peer payment network complete with a social feed similar to other networks) each quarter. According to Clarabridge's report, banks need to step up their app offerings in multiple ways. For starters, iPhone users have a more positive perception of mobile banking than Android users so there is clearly something lacking within banks' Android app experiences. Secondly, consumers want more mobibility in transferring funds with 41 percent of Americans claiming their biggest frustration with mobile banking is that they can’t easily transfer money to people at other banks via their bank’s apps, so they’re encouraged to use third-party apps like Venmo and PayPal.
Finally, Clarabridge advises banks to improve their social customer service offerings. Millennials seek help from their banks via social media, but currently, 35 percent of all issues tweeted at banks go unresolved. As a result, banks are not connecting with this digitally native generation who are seeking more "disruptive" offerings like Venmo.