(1) Rapidly improving their mobile services. Yes, this is now true of many banks around the world, but it's especially true in Australia. Following our reviews, CommBank announced updates to its app that would move the bank from 64 out of 100 to 69 out of 100, and up from 10th place globally, based on our reviews of 32 banks across 11 countries, to joint 6th. Westpac has already migrated 1.2 million customers to its new web based platform, which would move the bank from 62 to 77 out of 100, and 2nd place overall in our global reviews, up from 12th. These are dramatic positional swings in a very short period of time.
It’s no secret that UK banks were slow to take mobile banking seriously. The iPhone launched in 2007, and it wasn’t until 2010 that we had the first mobile banking app from NatWest. Barclays and HSBC, two of the biggest banks in Europe, let alone the UK, didn’t release apps until 2012. But our new report, 2014 UK Mobile Banking Functionality Benchmark, suggests all that is changing. UK banks now do well where it matters most to customers - across money movement, balance checking and transaction history search. Some of last year’s laggards have overtaken last year's leaders, and many UK banks now offer mobile sales functionality - ahead even of their peers internationally. Here’s the headline story:
This is a guest post from Aurélie L’Hostis, a researcher serving eBusiness & Channel Strategy professionals.
In a world that’s constantly on the move, more and more Europeans appreciate that the phone in their pocket can do more than just cruise the Internet, check the weather forecast, and shoot disgruntled birds into space. For mobile banking now offers a secure and convenient way for customers to do their banking ... all in the palm of their hand.
As mobile banking adoption maintains its steady growth in Europe, customer expectations for functionality within mobile banking apps continue to increase. Customers now want quick access to their accounts 24/7, the ability to perform a range of transactions with only a few clicks, and a way to manage their money directly on their smartphone. Over the past year, European banks have focused on trying to keep up with the demands of these increasingly sophisticated mobile banking users. The result has been a plethora of improved functionalities and exciting innovations in European mobile banking. We used our Mobile Banking Functionality Benchmark methodology to evaluate the retail mobile banking offerings of eleven European retail banks from France, Germany, Italy, the Netherlands, Spain, Poland, and Turkey. Here are some of the highlights:
When it comes to mobile banking, customers' expectations are growing faster than the hair on a Chia Pet. So every year, Forrester reviews and scores the mobile banking offerings from the largest retail banks in the US across seven categories: Range of touchpoints; Enrollment and login; Account information; Transactional functionality; Service features; Cross-channel guidance; and marketing and sales. You can read the complete report here or by clicking on the link below:
Here is a sampling of some of our findings:
Chase and U.S. Bank tie for the top spot. With scores of 69 out of 100, Chase and U.S. Bank received the highest overall scores among the five banks we evaluated. Chase delivers the basics superbly, with a wide range of transactional features for transfers, bill pay, and P2P payments as well as strong cross-channel guidance for customers to contact Chase and find ATMs and branches. By contrast U.S. Bank stands out for more advanced features, including marketing and research for additional products, the ability to take a picture of a paper bill to enroll in bill pay, and the ability to pay another person using the contact list in a mobile phone.
In Canada, mobile banking is growing up faster than Justin Bieber. So from March 21 to April 9, 2014, Forrester reviewed and scored the mobile banking offerings from the five largest retail banks in Canada across seven categories: Range of touchpoints; Enrollment and login; Account information; Transactional functionality; Service features; Cross-channel guidance; and marketing and sales. You can read the complete report here or by clicking on the link below:
Here is a sampling of some of our findings:
CIBC earns the highest overall score with BMO and Scotiabank on its heels. With an overall score of 71 out of 100, CIBC received the highest overall scores among the five retail banks we evaluated, continuing the firm’s leadership in mobile banking since it launched its first iPhone app four years ago. But the other large Canadian banks are hot on CIBC’s trail: BMO and Scotiabank each earned a score of 70 out of 100 with impressive – and recent – overhauls of their mobile offerings. Scotiabank lets users apply for new products via mobile with pre-filled, mobile-optimized applications. BMO, meanwhile, ensures that all mobile money movement task flows are clear and consistent -- incorporating the same progress meter at the top of every screen.
The first email I received at work in 2014 was from a bank; along with a festive new year’s greeting, the email touted the bank’s new mobile app and a new feature that let customers set up travel notifications directly from the bank’s website. Later that day, I was in an airport reading a friend’s Facebook post about how she wished “more apps were like Uber.”
These are just a few small anecdotes about ongoing digital trends impacting businesses and banks both large and small. I recently spoke with a banking executive who put it simply: “Digital is what we do now.” (This quote is now the header of my Twitter feed.)
Forrester recently published our Trends 2014: North American Digital Banking report, in which we identify major forces impacting banks and lay out five actions that we recommend digital strategists take to prepare for the future of digital banking. Here’s a sample of some of our findings:
Banks will face a sustained – yet unclear – regulatory environment. In both the US and Canada, banks are confronting an uncertain regulatory future. The Dodd-Frank Act was signed into US law on July 21, 2010, but a large number of the rules and regulations remain unwritten. It's unclear when they'll be finalized, and the fact that 47% of deadlines have already been missed – according to the law firm Davis Polk & Wardwell – doesn't bode well.
As my colleague Benjamin Ensor wrote some time ago, innovation often happens in clusters.This means that innovation by one company causes its competitors to not only match it but also to try to leapfrog it — resulting in rapid cycles of innovation. This is what is happening in Poland right now. During my trip there last week, a few bank executives told me of the increasing internal and external pressure not to fall behind digital innovation. There a couple of other reasons why Poland is a great testing ground for new financial services ideas; it has:
Bank of America CEO Brian Moynihan just announced that more than 10% of all consumer deposits are done through mobile devices. That's in Q1 2014, and it's up from 6% in Q1 2013. (What you see in this picture is my local Bank of America branch, which I never visit any more.)
I love this from the Wall Street Journal's MoneyBeat blog:
Banks that don’t offer a full suite of mobile banking services may run the risk of alienating customers. All told, about 60% of smartphone or tablet users who switched banks in the fourth quarter said mobile banking was an important factor in the decision, up from 7% in the second quarter of 2010, according to data from New York-based consulting firm AlixPartners.
A mobile transaction costs 10 cents. An ATM transaction costs $1.25.
Here's what this means for you: Find a mobile moment where you can make your customer's life easier and you'll make money three ways. First, you'll make the customer happier with a better experience. Second, you'll keep him from switching to a competitor. And third, if you engineer it right, your own processes will be simpler and you'll save money, too. That's mobile mind shift thinking.
It's not just banking. Where are the mobile moments like this in your business?
Our report lays out many commonly-encountered obstacles to mobile banking execution success and how digital teams can overcome these obstacles. Here are a few of the areas the report looks at:
Overly ambiguous — or nonexistent — business goals. Clearly articulated business goals should be part of a bank's mobile strategy. But a successful road map also lays out the business objectives and records specific goals for each initiative. As one eBusiness executive at a bank told us, "We literally have a section we call 'What's in it for us?' and we use sticky notes to write out what we think we can gain from each action."
Legacy systems and back-end integration. Technology may well be the largest obstacle to executing a mobile banking strategy — especially for larger, traditional banks. As such, successful mobile road maps need to outline how initiatives will plug into existing or soon-to-come platforms and systems.
It is safe to say that online and mobile banking have hit mainstream. Today, more than half of all adults with a bank account in France, Germany, Italy, Netherlands, Spain, Sweden, and the UK use banking services — which we define as information requests, transactions, or alert delivery — on their PCs, tablets, or mobile phones. The uptake of tablets and smartphones gives banks an opportunity to engage their customers deeply across platforms. Our recently published Forrester Research Digital Banking Forecast, 2013 To 2018 (EU-7) explores how each Internet-connected device will drive future online and mobile banking adoption across seven key European markets.
The forecast identifies some key trends in the European digital banking market.
1. Mobile banking adoption continues its sturdy growth. As recently as 2009, mobile banking activity was negligible, representing fewer than 5% of all adults with accounts. Adoption has risen nearly fourfold since and will continue to grow at double-digit compound annual growth rates through 2018. However, consumer concerns about device security will restrain growth: In all the European countries we track other than Italy and Spain, consumers are more than twice as likely to cite security concerns as a reason for not using mobile banking than for not using PC/tablet online banking.