Mobile banking success is a moving target: Customers needs and expectations are changing rapidly, and eBusiness teams at banks are sprinting to get ahead of their customers’ expectations. To achieve this, firms are rolling out new features, optimizing existing services, and enhancing mobile experiences.
To understand which firms are leading in mobile banking — and to better gauge the mobile banking landscape overall — we used our Mobile Banking Functionality Benchmark to evaluate and rank the mobile banking efforts of 15 of the largest banks in North America, Western Europe, and Australia.
Highlights of this research include these findings:
Chase takes the top spot overall. Chase received the highest overall score among the banks we evaluated, netting a score of 71 out of 100. The bank offers mobile banking services across a range of touchpoints ranging from smartphone apps, strong mobile websites, and two-way SMS. In addition, Chase also has strong mobile money movement features such as bill pay – including the ability to add a payee – and mobile transfer capabilities.
Banks get a bad rap for not being innovative enough. But at least one provider is proving the haters wrong: Early this year, U.S. Bank launched Mobile Photo Bill Pay, a feature that lets mobile bankers add a new payee simply by taking a picture of a paper bill or statement.
This mobile feature – powered by technology solutions company Mitek – goes beyond “nifty” With it, U.S. Bank offers customers an easier, more convenient, and more elegant cross-channel experience for a common activity. It helps the bank by increasing the number of customers who use digital bill pay – and deepening relationships with customers. According to Niti Badarinath, SVP and head of mobile banking at U.S. Bank, “Getting people to become active users of bill pay is key to our digital strategy, because we recognize the value and stickiness of the relationship when people pay bills." (taken from a recent article in American Banker)
How it works
When U.S. Bank launched mobile photo bill pay, I immediately pulled up my U.S. Bank iPhone app and took this new feature for a test drive (see screenshots below). Put simply, this is an innovation that delivers: A customer can go from opening a bill he got in the mail to enrolling a brand new payee to paying that bill in under 150 seconds (a.k.a. less than 2 minutes and 30 seconds). This is without setting up any bill payment options in advance, or entering any information manually – the mobile photo bill pay feature even corrects for image distortion, reads relevant data and auto-populates all the information.
The rapid development of customer touchpoints and rising customer expectations turn up the pressure on eBusiness professionals at retail banks to continue investing in digital channels. Even with the rising pressure, few eBusiness executives report having the resources needed to execute a strategy that supports customers who use multiple channels. Forrester partnered with the Consumer Bankers Association for the second year to survey digital banking executives for the “The State Of North American Digital And Multichannel Banking 2013” report. The goal of the research was to better understand how digital banking teams are focusing their strategic energy, investing in digital channels, building multichannel capabilities, and measuring the digital business. We found that:
Consumers are increasingly using multiple channels. Almost one-third of eBusiness executives we surveyed believe that more than half of their customers regularly use more than one channel. Yet few banks have connected their multiple channels to create an integrated multichannel experience -- allowing customers to seamlessly move between channels.
While most banks have a multichannel strategy, few have the resources to execute. Most eBusiness executives indicate they have a digital strategy, yet only a few report having the budget or dedicated multichannel teams to support executing a strategy. Without dedicated resources, multichannel will remain a pipe dream.