Mobile banking is becoming an increasingly important part of the consumer banking experience as customers visit branches less frequently and rely more heavily on smartphones to manage their finances. Financial institutions are responding by developing digital-first products that combine everyday banking services with tools designed to help consumers better understand and control their money.
The Wells Fargo mobile banking initiative, Greenhouse, reflects this shift by combining virtual banking with automated budgeting and money management capabilities. Scheduled for release in 2018, the mobile-only account is designed to help consumers manage spending, irregular income, and savings while providing greater visibility into their financial lives.
The open collaboration between the established financial Institution population and fintech yield more fruit, with the announcement of Wells Fargo Corporation’s forthcoming virtual banking and money management solution. The interest and uptake of mobile-only banking has been accelerating, with more consumers recognizing their own visits to the branch have become significantly less frequent. WFC has also incorporated the means to address the desire of many consumers for insight into their own income and spending events.
Avid Modjtabai, head of payments, virtual solutions and innovation at Wells Fargo, says the new account has been designed to appeal to a broad base of consumers, many of whom have several income sources or are paid infrequently, which can make budgeting a challenge, “Whether you are new to banking, don’t have regular paychecks, or typically manage money with cash, we believe the Greenhouse experience can help you manage day-to-day spending while planning for the future,” he says.
Mercator Advisory Group anticipates the Wells Fargo mobile banking solution will find near term traction upon its release in 2018 if it delivers on the tenets of automated budgeting, predictive reminders, and immediate feedback loops to assist its patrons in build greater financial predictability and security in an uncertain environment. We would add that personalization and customization of individual financial aims and philosophies will be a key determinants of how well these solutions are taken up and retained by the public.
The Wells Fargo mobile banking strategy demonstrates how established financial institutions can incorporate fintech-inspired capabilities into their digital offerings. Providing a mobile account is only part of the opportunity; combining banking with budgeting tools, predictive reminders, and immediate feedback can help consumers make more informed financial decisions.
Greenhouse could be particularly useful for consumers with irregular paychecks, multiple income sources, or a greater reliance on cash, where traditional budgeting approaches may be difficult to maintain. Automated tools can provide these customers with greater insight into available funds and upcoming financial obligations.
As mobile banking adoption continues to accelerate, personalization will also be critical. Financial institutions that allow customers to tailor digital money management tools to their individual goals and circumstances may be better positioned to build lasting engagement and loyalty.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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