The Key to Massive Growth Potential for Banks in the Mobile P2P Payments Market
While it’s true that a number of non-traditional players have moved into the mobile P2P money transfer market, banks needn’t be too worried yet. Not only is the market massive and still wide open for business, but banks also have enormous growth potential by just tapping into their existing customer base.
PayKey survey results show that there is substantial room for growth for banks that can shift millennial customers who use bank websites for P2P transfers toward mobile banking applications. As PayKey discovered, 34% of respondents use a bank website to transfer money to their friends or family.
Banks can also access growth by attracting their existing mobile app users to start using their application for P2P transfers. Although 86% of PayKey survey respondents were found to use their mobile banking app at least once a month or more, only 24% reported to use it for P2P money transfers. Banks have an opportunity to tap into their existing customer base that don’t currently use their banking app for P2P money transfers but do, however, use it regularly for other financial services.
Why aren’t existing customers using mobile P2P transfer facilities offered by their bank?
With PayKey survey results finding that 92% of UK millennials are conducting P2P transfers at least once a month or more and 55% transferring P2P between two and four times per month, the reason certainly isn’t a lack of demand. Furthermore, with 87% of UK millennials trusting bank solutions over third party P2P transfer services, the reason certainly isn’t security. So why aren’t existing customers using their bank’s mobile P2P transfer facilities?
The answer is simple. Current mobile P2P transfer solutions offered by banks are counterintuitive, out of context, and require a number of information fields to be filled out, making them unappealing to the millennial lifestyle. The P2P transfer processes currently offered via bank applications are filled with friction points that frustrate and alienate millennial customers.
If banks want to tap into the enormous growth potential that lies within their existing customer base, they must improve their mobile P2P transfer experience. Keeping the same P2P facilities will continue to push customers toward more millennial-friendly third party P2P providers.