In my latest huddle with a group of younger FNBB employees, we had a spirited discussion about what features they felt must be included in a mobile banking app in order for it to be viable for attracting and keeping younger customers.  I am building a comprehensive list of features and will provide the full list in a future blog post.  The elements that were the most commonly sought after by these emerging leaders were not the most “far out there” features. It was elements like biometric login, real-time fraud and balance alerts, debit card management features, savings goals and a personalized dashboard / landing page.  None of these is particularly innovative; large FIs have offered these features (and much more) for many years. However, a large majority of community FIs have deployed mobile banking applications that don’t have these features.

There are advanced mobile features that attract the eyes and attention of younger prospective customers.  But if the bank’s mobile banking app is not even keeping pace from what the regional and national banks have been offering for years, is it surprising that many younger customers gravitate to opening accounts at those larger banks?  Bank of America, Citi, Wells Fargo and Chase, just to name a few of the largest, have made mobile banking a priority and spend millions in upping their game on the digital branch. For them, mobile banking is … strategic.  What will it take for your institution to decide that choosing a mobile app based only on cost is not a smart strategic move?  Mobile represents the most important portal for younger customers into your institution. Think of it as a single branch location called mobile banking.  Considering what you spend on physical branches, is it not reasonable to create an upgrade budget for this one branch that is your largest, most profitable branch?

Central Pacific Bank (CPB) located in Hawaii understands the strategic nature of mobile banking.  They elected to move away from a low-cost mobile banking structure and implemented a new mobile banking suite that gave them significant strategic features that younger customers desire and further branded it in a manner that makes it uniquely their own.  Read full story here in the Financial Brand. It is important to note that they specifically focused on improving the mobile channel and didn’t try to align all mobile and online features together.  The mobile channel is king and while having online banking is still strategic, it is not inappropriate to add new features in mobile banking that may not be represented in online banking. Think of it this way, one might still be using online banking for traditional tasks like transferring funds, researching transactions or paying bills but use the mobile app for daily alerts, instant payments and budget / saving wisdom.

Let’s review just a few of the mobile banking elements that CPB now has available for customers:

• Direct Deposit Switching – The ability to easily setup or switch your direct deposit is an overlooked benefit for individuals. Even just posting clearly the account number and bank routing number to use for deposits and loan payments would be a huge benefit.
• Credit score monitoring – So straightforward an option yet sadly missing from most community banks’ mobile apps.
• Mobile account opening – I have written extensively about the need for streamlined account opening on the mobile device, still missing from most virtual branch apps.
• Gamified savings and budgeting tools – Again, I have been very vocal about the need for gamification in the mobile banking channel. Young people play games on their phones … all day and night. Why not get in on this action by making banking … fun!

CPB also is capitalizing on the inherent security features of the mobile platform to enhance its offering. They offer fun, relatable but on point educational videos available on the mobile app.  Also, no surprise, they have an excellent chat feature providing instant access to support and advice.  You should check out the nice video on their mobile banking offering at cpb.bank/personal-banking/digital-banking/mobile-banking.  While this does not show any of the specific gamification elements they added, there is enough for you to see for comparison to your current mobile banking offering.

Why not make 2026 the year of mobile banking transformation for your institution?  It might take a multi-year plan to add all that you really want or need for upgrading the virtual branch, but it’s okay to offer it at stages, giving your users time to assimilate new features before getting new ones. In fact, this was a specific strategy of CPB. They offered new features in a planned rollout, which allowed each new feature to be experienced by their customers while also giving them a long-term marketing campaign that constantly kept their mobile app (and bank brand) in the public eye. Think that this challenge might be too hard or expensive for your institution?  It may seem that way. But in the end, this is a banking channel that you cannot overlook or shortchange.  I welcome your thoughts on the future of mobile banking. Reach out to me at dpeterson@bankers-bank.com and let’s start a conversation about how your institution can make mobile banking the key element to attracting and keeping younger customers.