As mobile devices continue to pervade society, fully featured, adaptable technology that can provide an exceptional user experience will be the key to future mobile markets.
Mobile devices are being adopted at an unprecedented rate. According to a 2012 Flurry Analytics report, smartphone adoption has occurred 10 times faster than the PC revolution of the 80s and three times faster than the social media boom. A recent Pew Research Center Survey noted that 91% of American adults currently own a mobile phone and, of those, 56% have a device classified as a smartphone. This is up from 2011 by 21 percentage points when only 35% of adults owned a smartphone.
Children are getting in on the act, too. Common Sense Media, an online watchdog organization, conducted a study of how children interact with mobile technology and found that 38% of toddlers and infants under two years of age have used a mobile device. This was up from only 10% just two years ago. Children, as a whole, using mobile devices has nearly doubled, up from 38% in 2011 to nearly 72% in 2013. Children are experiencing technology at home and are even utilizing mobile technology throughout their education. These students, according to a Harris Interactive survey, overwhelmingly believe that mobile devices in classrooms will change learning forever and feel that more mobile devices should be used in the classroom. These so-called "digital natives" — those who grew up in the digital age — will be the members of the future and are experiencing mobile devices at increasingly young ages.
The 2013 Intel Innovation Barometer survey finds that even organizations delivering the latest and greatest technology may not benefit as much as one might believe. The survey concludes that the Millennial generation is starting to be disillusioned by certain technologies and believe that these technologies are having a dehumanizing effect on society. According to the survey this group appears to be looking for technology that can provide an enhanced user experience and can be customized to their own personal expectations making the technology more intuitive and human. In response to this, Amazon debuted the new Kindle Fire HDX mobile device; with this device Amazon introduced an innovative new feature the "Mayday" button. This feature allows the Kindle user to chat with a live representative via a one-way video feed. This technical support representative would have access to the device and could guide the user through all aspects of the device's operation. The theme of the improved, personalized user experience can also be found in the world of ATMs. NCR has a hybrid device on the market which mixes the convenience of an ATM with the personal experience of speaking with a representative. These Interactive Teller Machines complete the user experience by allowing those who desire a fast automated transaction to do so and those who need assistance can contact a representative in realtime who can help them through the entire transaction.
While both of these innovations are fairly new and little information is available on their successes, these features speak to the Millennial's desire to have a better user experience with their devices and it directly relates their desire to have a more complete and personal user experience. This blend of technology and customer service will be the hallmark of the Millenial generation.
What does this mean for financial institutions? First, it means that mobile technology must be part of any future focused strategy. This involves building infrastructure and ensuring that breakthrough technologies are considered and implemented as appropriate. Secondly, it means that the user experience cannot be neglected for the sake of cost. While the user experience can be augmented with many support tools, including live chat and live video, it is the quality of the experience that will bring users back to a given channel and create a more loyal and engaged membership.
Finally it means that people matter. In this age of self-service technologies, organizations must realize that the user experience doesn't stop at the mobile channel. The user experience makes itself known at every touch point that a member has with an institution be it a mobile device, a phone call, an ATM or an in person transaction. This entire flow will become the user experience and the user experience will be the key driver in generating business.
Nicholas Mathiowetz is IT Manager/Security Officer of Northern Communities CU and is a member of the CUNA Technology Council.
