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.
Late last year, Forrester reviewed and ranked the secure websites of the 12 largest retail banks in the US and Canada. The full reports can be found here (US) and here (Canada). Overall, banks' secure websites earned an average score of 70 points (out of 100), demonstrating a level of quality that meets customers expectations but also leaves room for improvements. Here are some of the highlights:
Citi moves to the top of the US rankings with a website overhaul. In July 2011, Citi launched its first tablet banking app. Based in part on insights gleaned from that process, the bank rolled out a newly redesigned secure website, followed by additional digital features and functionality for online bankers, mobile bankers, and tablet bankers. As a result, Citi moved from second-to-last in our ranking to the top spot this year.
RBC pulls off a historic sixth-straight win among Canadian banks' secure sites. For a record sixth year, RBC earned the top spot in our Canadian rankings. Two factors drive RBC’s digital banking success: First, the bank's secure website offers a wide array of secure site features, including eBills, tax management tools, and more; second, the bank continues to innovate, this year adding customizable money management dashboards and new mobile features such as foreign exchange and mortgage payment calculators on its iPhone app.
Technology is radically changing the way bank customers interact with their providers, and mobile touchpoints are at the forefront of this change. In the past five years, mobile banking adoption in the US has more than quadrupled, hitting 17% by the end of 2011. This represents a compound annual growth rate (CAGR) of more than 33%.
As such, eBusiness professionals and mobile strategists at banks are in a white-knuckle contest to out-do each other in the mobile space. To evaluate and gauge banks’ mobile offerings, we applied Forrester’s Mobile Banking Functionality Benchmark to the four largest retail banks in the US.
What we found:
Big US banks offer solid, not-yet-splendid, mobile services. We employ 63 individual criteria in our Mobile Banking Functionality Benchmark methodology. The combination of weightings and scores for the criteria generates an overall score based on a 100-point scale. In our inaugural ranking, the four largest US banks posted an average score of 63 out of 100 – above our minimum standards but far from perfect.
Intel today officially announced the first products based on the much-discussed Sandy Bridge CPU architecture, and first impressions are highly favorable, with my take being that Sandy Bridge represents the first step in a very aggressive product road map for Intel in 2011.
Sandy Bridge is the next architectural spin after Intel’s Westmere shrink of the predecessor Nehalem architecture (the “tick” in Intel’s famous “tick-tock” progression of architectural changes followed by process shrink) and incorporates some major innovations compared to the previous architecture:
Minor but in toto significant changes to many aspects of the low-level microarchitecture – more registers, better prefetch, changes to the way instructions and operands are decode, cached and written back to registers and cache.
Major changes in integration of functions on the CPU die – Almost all major subsystems, including CPU, memory controller, graphics controller and PCIe controller, are now integrated onto the same die, along with the ability to share data with much lower latency than in previous generations. In addition to more efficient data sharing, this level of integration allows for better power efficiency.
Improvements to media processing – A dedicated video transcoding engine and an extended vector instruction set for media and floating point calculations improves Sandy Bridge capabilities in several major application domains.
Consumer product strategists hold a wide variety of job titles: product manager, product development manager, services manager, or a variation of general manager, vice president, or even, sometimes, CEO or other C-level title. Despite these varying titles, many of you share a great number of job responsibilities with one another.
We recently fielded our Q4 Global Consumer Product Strategy Research Panel Online Survey to 256 consumer product strategy professionals from a wide variety of industries. Why do this? One reason was to better understand the job responsibilities that you, in your role, take on every day. But the other reason was to help you succeed: By benchmarking yourself against peers, you can identify new job responsibilities for growth, improve your effectiveness, and ultimately advance your career.
What did we find out? The bottom line is that consumer product strategy jobs are pretty tough. We found a wide range of skills are required to do the job well, since consumer product strategists are expected to:
Drive innovation. Consumer product strategists are front-and-center in driving innovation, which ideally suffuses the entire product life cycle. Being innovative is a tall task, but all of you are expected to be leaders here.
Think strategically... You've got to have a strategic view of your markets, identifying new concepts and business models and taking a long-term view of tomorrow's products.
...but execute as a business person. While thinking strategically, you generally have to execute tactically as well. You're business unit owners. At the senior-most levels, you hold the P&L for the product or portfolio of products.
I have been working on a research document, to be published this quarter, on the impact of 8-socket x86 servers based on Intel’s new Xeon 7500 CPU. In a nutshell, these systems have the performance of the best-of-breed RISC/UNIX systems of three years ago, at a substantially better price, and their overall performance improvement trajectory has been steeper than competing technologies for the past decade.
This is probably not shocking news and is not the subject of this current post, although I would encourage you to read it when it is finally published. During the course of researching this document I spent time trying to prove or disprove my thesis that x86 system performance solidly overlapped that of RISC/UNIX with available benchmark results. The process highlighted for me the limitations of using standardized benchmarks for performance comparisons. There are now so many benchmarks available that system vendors are only performing each benchmark on selected subsets of their product lines, if at all. Additionally, most benchmarks suffer from several common flaws:
They are results from high-end configurations, in many cases far beyond the norm for any normal use cases, but results cannot be interpolated to smaller, more realistic configurations.
They are often the result of teams of very smart experts tuning the system configurations, application and system software parameters for optimal results. For a large benchmark such as SAP or TPC, it is probably reasonable to assume that there are over 1,000 variables involved in the tuning effort. This makes the results very much like EPA mileage figures — the consumer is guaranteed not to exceed these numbers.
Yee Hah! The worst recession since the Great Depression was declared officially over in June of 2009. We should be feeling great, since all things considered, the insurance industry fared pretty well when it came to how it emerged from that dark tunnel. But except for one notable role voice, insurers, unlike their banking peers, are still holding back from growing the business. How do we know? We took a look at nearly 5,000 inquiries that Forrester answered for insurers, bankers, and securities firms in the wake of failure of Lehman Brothers to just after this May’s Flash Crash.
What was on the minds of insurers during these six quarters? For starters, insurers:
Asked more questions than their financial services peers. Of the three segments we looked at, insurers asked half of the inquiries we fielded—2,500 versus nearly 1,600 and 600 for banks and securities firms, respectively.
Framed more than half of those questions around risk. Insurers didn’t veer away from what got them through the recession intact (indeed, from the very nature of their business)—managing risk. Even questions about application development strategies were framed as a risk question, with most insurers seeking validation that they were following in the well-worn grooves of others in insurance (and other industries) before them.
Posed too few questions about growing the business. Unlike their banking and securities siblings who asked questions about growing the business through new product launches, up-selling and cross-selling, or luring new customers away from competitors, insurers, with one big role-based exception, did notreflect that Q2 2009 economic inflection point.
Among the biggest strategic questions facing eBusiness & Channel Strategy executives are how to make use of the growing potential of the mobile channel, how to integrate mobile phones into their company's multi-channel strategy, and how to meet customers' rising expectations for mobile services.
We have argued that, for most companies, mobile's time has come. Every company needs to have a mobile strategy in place, even if that strategy is to wait until specific things happen before making serious investments.
Most of the eBusiness & Channel Strategy executives that we work with are either directly responsible for, or closely involved in, their company's mobile strategy. So we would like your perspective -- and we'd like to help you benchmark your mobile strategy against that of your peers.
We invite you to take part in a short survey about your company's mobile strategy, your objectives, the metrics you use and the challenges that you face. You can take part in the survey here.
The survey takes less than 15 minutes to complete.
Individual responses will be kept strictly confidential and results only published in aggregate.
In return, we will give you a free executive summary of the survey results.
We're keen to get as wide a sample of industries and geographies as we can, so please feel free to forward this survey through your networks. If you are not familiar with your company’s mobile strategy, but know who is, please forward this survey to them.
I look forward to your perspectives. Thank you in advance for your time.