For small to mid-sized banks and credit unions looking to build a new mobile banking app, the old saying used to apply: you can have it fast, cheap, or good — pick two. But that trade-off is starting to fade. Today, delivering a high-quality mobile banking experience that’s also affordable and quick to launch is increasingly within reach. And for institutions that get the basics right, the payoff in engagement, satisfaction, and loyalty can be immediate.
The shift is consequential: A decade ago, many community financial institutions had mobile apps, but most were basic, lightly branded (if at all!), and limited in features. Since then, digital adoption has accelerated across all demographics, and the mobile app has become the front door for customers. A new white paper by the outsourced credit card solutions provider Elan offers critical context: Nearly three-quarters of all banking interactions now happen through digital channels. And 55% of U.S. consumers primarily use mobile apps to manage their financial accounts — well ahead of desktop-based online banking.
As usage has grown, so have expectations, driven by widespread fintech innovation. According to Elan’s analysis, which gathers insights from a broad range of industry research, consumers increasingly rely on mobile apps to complete more complex financial tasks — including credit card management, rewards redemption, and even setting up installment payments. In a Forrester study cited by Elan, 65% of U.S. customers said they want a mobile app that brings bank accounts and credit cards together in one place.
And if any of those tasks aren’t easy to complete, members don’t hesitate to switch providers. The white paper notes that 65% of users will abandon a mobile app if functionality declines, and 57% would consider leaving a provider altogether due to a poor mobile experience. The key takeaway is that it’s no longer a viable strategy to let a mobile app languish as the world of digital technology forges ahead.
A New Playbook for Mobile
For smaller institutions, mobile used to feel like a big-company game. Now, for those looking to keep pace, there are more options. You can still scoop up talent to build it yourself, but vendor and partner options have gained in quality and accessibility. Technology partners now offer prebuilt, customizable app platforms, which can include features that were once expensive to build internally, including screen-sharing for live support, real-time fraud alerts and seamless merchant interactions.
Sharone Tate is Head of Cards Digital Experience at U.S. Bank, the parent company of Elan Credit Card. Her team recently led the effort to revamp Elan’s mobile app, creating a jump in user ratings from 1.6 stars to 4.8. And digital satisfaction and usage have continued to rise, further underscoring the app’s success. "It’s vital that your mobile app works really well so that there’s no roadblocks or headwinds," Tate said. For customers that prefer a collaborative approach, her team introduced a co-browsing feature that lets support agents and users troubleshoot together.
These shifts in cost, capability, and consumer expectations are reshaping how institutions approach mobile strategy. For those evaluating their next move — whether it’s a first-time launch or a long-overdue upgrade — success depends on focusing attention in three key areas:
