Basic financial alerts that customers set themselves at an online dashboard will be surpassed by personalized in-app notifications that FIs mine from big data and deliver proactively as a central part of the app experience.

What to Look For

Pioneering FIs will introduce insights and gamification into their alerts to add more value than standard informational alerts such as balance updates. More FIs will market alerts to demonstrate “we have your back,” to imbue a sense of mobile-first control, and to differentiate themselves from rivals. FIs will fight to win space in the notification tray and in smartphone virtual assistants to spotlight alerts throughout the day, not just when customers open the app. Alerts and settings will gain prominence on the home screen of financial apps to enable users to easily adjust or turn alerts on and off. Proactive FIs will lead by adopting an opt-out approach that will start by automatically sending daily balance updates and transaction notifications to smartphones and wearables.

Key Business Considerations: What Does It Mean?

  • FI culture: FIs must demonstrate a fiduciary approach that puts the customer’s finances first.
  • FI infrastructure: Success will hinge on personalized content. FIs will invest in aggregation, data mining, predictive analytics, artificial intelligence, and machine learning to identify what financial insights matter most to a specific customer at a specific time.
  • FI infrastructure: Real-time delivery will be essential and expected, putting pressure on FIs to integrate customer data so they can be accessed, analyzed, and turned into alerts instantly.
  • The trendsetters: Mobile-first Moneyhawks™ and young Emergents will continue to lead demand for alerts in general — and notifications in particular.
  • Customer experience: Privacy concerns will be less of an obstacle because notifications will become an essential, invaluable part of the app experience.
  • Customer experience: Consumers will turn or automatically receive bundles of notifications rather than setting them one by one.

About Mark Schwanhausser

Mark Schwanhausser is JAVELIN’s Director of Omnichannel Financial Services. Mark strategizes how financial institutions (FIs) can track and serve customers across whatever channels they use, and provide a consistent, integrated brand and user experience. Mark helps banks and credit unions profitably enable customers to monitor and manage their money more intelligently through technology such as online banking, mobile banking, personal finance management, financial alerts, and technologies on the horizon like wearables.

Mark led the development of JAVELIN’s Financial Journey Model, which builds digital banking on a foundation of 10 time-tested personal finance principles, and JAVELIN’s holistic segmentation, which enables FIs to prioritize their investments to serve the critical needs of the profitable Moneyhawks™, high-value Traditionalists, and up-and-coming Emergents. His other work in 2015 has focused on how banks and billers can turn off paper statements by closing the “digital commitment gap,” why digital account opening has reached a tipping point, and how FIs can use alerts and notifications to initiate daily “conversations” with customers.

Before joining JAVELIN in April 2008, Mark worked for nearly 26 years at the San Jose Mercury News, mostly as a personal finance reporter writing about money and emerging trends in financial services and payments technology.

Mark has a bachelor’s degree in journalism from the University of Missouri at Columbia and attended Antioch College.

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