2014 Mobile Finance Trends and Innovations
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Transcript of 2014 Mobile Finance Trends and Innovations
COPYRIGHT 2014 CORPORATE INSIGHT, INC.
MOBILE FINANCE2014 TRENDS AND INNOVATIONS
DANIEL J. WIEGANDSENIOR ANALYST, MOBILE RESEARCH & CONSULTING
FEBRUARY 2014
ABOUT CORPORATE INSIGHT
Connect With Us
Corporate Insight provides competitive intelligence and user experience research to the nation’s
leading financial institutions. For over 20 years, the firm has tracked technological developments in the financial services industry, identifying best practices in online banking and investing, online insurance, mobile finance, active trading platforms, social media and other emerging areas. There are no assumptions in Corporate Insight’s work – we use live accounts at all of the firms we research, providing our clients with unparalleled, unbiased intelligence on the competition.
DANIEL J. WIEGAND
Senior Analyst, Mobile Research & Consulting
(646) 432-5483
MEDIA INQUIRIES
Please Contact Intermarket Communications:
(212) 888-6115
Press Coverage
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TABLE OF CONTENTS
Introduction
2014 Mobile Finance Trends and Innovationso New Security Options Emphasize Accessibilityo iOS7 Influences Design and Functionalityo Leveraging Smartphone Capabilities: Camera, Voice & Alertso Research Offerings Continue to Expando Firms of All Types Add Transaction Capabilitieso New Tablet Apps: iPad & Androido Early Adopters Introduce Responsive Sites
Mobile Finance: 2013, 2014 and Beyondo Three Takeaways for Financial Services Firmso What’s Next?
Corporate Insight Thought Leadership
About the Author
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INTRODUCTION
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Mobile usage continues to grow, with an ever-greater portion of total Internet traffic coming via a smartphone or tablet – rising above 15% in 2013.1 Mobile gives companies a chance to deepen relations with customers as well as reach targeted demographics such as Millennials or the underbanked. With this in mind, Corporate Insight has been tracking mobile finance since 2011, following developments among leading financial services firms and exploring key topics such as tablet design, money movement, security and more.
KEEPING UP WITH MOBILE FINANCE
In July 2013, we published our mid-year review of interesting and noteworthy mobile finance trends that occurred in the first half of the year. Now, at the start of 2014, we take a look at how those trends have advanced and highlight some new developments that have emerged since. As previously, we draw on our ongoing tracking of the industry as well as relevant developments outside of the financial services space. We conclude with key takeaways and our thoughts on what could be coming next for mobile finance.
1. 2013 Internet Trends, Kleiner Perkins Caufield & Byers5
2014 MOBILE FINANCE TRENDS AND INNOVATIONS
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NEW SECURITY OPTIONS EMPHASIZE ACCESSIBILITY
Discover now offers two faster access options
o Quick View offers immediate access to basic balance details (July)
o Passcode replaces username/password with a 4-digit code (August)
BarclayCard Peek (September)
o Access to basic balances pre-login
Capital One SureSwipe (November)
o Credit card customers can trace a pattern instead of typing username/ password
Navy Federal Credit Union 4-digit Passcode (January 2014)
USAA has long offered a Quick Logon option using the client’s online PIN20
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Discover Quick View & Capital One SureSwipe
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NEW SECURITY OPTIONS EMPHASIZE ACCESSIBILITY
Other security customization options added in late 2013
o TD Ameritrade privacy mode hides balances while browsing apps
o USAA now allows clients to show/hide specific accounts on mobile apps
The ability to switch between apps and mobile site is growing
o USAA’s apps offer a link to launch the mobile site, no login required
o Other firms have added targeted access to specific mobile site pages such as rewards (e.g., Chase) or profile updates (e.g., Vanguard)
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USAA Menu & Chase Ultimate Rewards
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iOS7 INFLUENCES DESIGN AND FUNCTIONALITY
Apple released the iPhone 5S & iOS7 in September 2013, featuring a redesigned user interface and new built-in functionality
o The new iPhone’s Home button features fingerprint recognition for screen lock and iTunes Store purchases; not accessible to third-party apps
o Other enhancements to notification center, control center, camera and Siri
o Still no NFC chip in new iPhones – a setback for mobile wallet prospects
E*TRADE enables watch list sharing via AirDrop
Firms also adopt Apple/iOS7-standard design aesthetics and slide-out menu structures
o Examples include Ameriprise, Discover, KeyBank, PNC Bank, Scottrade, ShareBuilder, U.S. Bank, Vanguard
Most other firms made compatibility updates
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E*TRADE AirDrop
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LEVERAGING SMARTPHONE CAPABILITIES: CAMERA
Mobile check deposit continues to become an industry standard
o KeyBank (June)
o TD Bank (August)
o TD Ameritrade (October)
Mobile check deposit is currently available from 81% of the banks Corporate Insight tracks and 47% of the investment firms
Firms have found other ways to use the built-in camera:
o USAA expedites account opening with blank check images for initial deposit or driver’s license for personal data
o American Express and Chase’s small business apps offer receipt capture
o Add a vehicle on Esurance by scanning VIN2014
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TD Ameritrade Deposit Check
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LEVERAGING SMARTPHONE CAPABILITIES: CAMERA
Beyond deposits, U.S. Bank adds new mobile photo capabilities from partner Mitek Systems
o Mobile Photo Bill Pay – image of a bill to load payee details
o Mobile Photo Balance Transfers – image of offer to accept
o While U.S. Bank is the only firm CI tracks with these features, smaller community banks have also made those additions2
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U.S. Bank Mobile Photo Balance Transfer
2. How Mobile Photo Bill Pay is Helping Community Banks Appeal to Mobile-Only Consumers, Bank Systems & Technology 11
LEVERAGING SMARTPHONE CAPABILITIES: VOICE
E*TRADE has offered Nuance-powered voice recognition since April 2012
USAA started a pilot “virtual mobile assistant” program in March, expanded to all clients in April
Shortly after, GEICO added Voice Assistance from “Lily”
Esurance is the latest firm with this capability, unveiled in January 2014
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Esurance Voice Navigation
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LEVERAGING SMARTPHONE CAPABILITIES: ALERTS
Push notifications continue to grow as a delivery options for market and account alerts
o Fidelity (April)
o Scottrade (November)
o Along with additions from Bank of America & Discover in late 2012, nine firms CI tracks support push notifications
Other firms added mobile email and SMS alert management – not as advanced, but still helpful
o ShareBuilder iPad app (October)
o U.S. Bank (November)
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Fidelity & Scottrade Push Notifications
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RESEARCH OFFERINGS CONTINUE TO EXPAND
Investment firms steadily add to their research capabilities
New standout tools added in 2013 include:
o E*TRADE stock screener
o Charles Schwab & ShareBuilder heat map watch list displays; Fidelity already offers a similar option
o TD Ameritrade focuses on enhancing news and video offerings
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Charles Schwab & ShareBuilder Heat Maps14
FIRMS OF ALL TYPES ADD TRANSACTIONS
P2P payments grow among banks
o PNC Bank, Ally Bank & Citizens Bank partner with Popmoney
o Wells Fargo enhances mobile P2P with the ability to add recipients on a mobile device
Merrill Edge and Charles Schwab add multi-leg options trading
o optionsXpress also now supports three- and four-legged options trades
In 2013, retirement plan providers began adding transaction capabilities such as rebalances, contribution rate changes, etc.
o Vanguard, ING, Principal & T. Rowe Price are the first firms with retirement plan transactions
o VALIC’s new iPad app also offers transactions
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PNC Bank Popmoney & Vanguard Manage My Money
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NEW TABLET APPS: IPAD
New firms continue to add iPad apps in 2013-2014
o Bank & Card: Popular Community Bank, HSBC, Navy Federal Credit Union, Capital One, SunTrust & Citizens Bank
o Brokerage: Scottrade
o Asset Management: John Hancock, JP Morgan & VALIC
o Currently, 86% of bank & card firms and 68% of brokerages CI tracks offer iPad apps
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Scottrade Overview & Capital One Credit Card Summary16
NEW TABLET APPS: ANDROID
Some renewed interest in Android tablet optimization as well, with the first new Android tablet apps since American Express (2011) & Bank of America (2012)
o E*TRADE – April
o TD Ameritrade – November
o Wells Fargo – January 2014
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Wells Fargo Advisors Brokerage Account Summary
TD Ameritrade Account Overview
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EARLY ADOPTERS INTRODUCE RESPONSIVE SITES
As of July 2013, no firms CI tracked used responsive web design
Since then, American Express, Capital One, Capital One 360, Progressive and State Farm have unveiled responsive sites
o Santander Bank, added to CI’s Bank Monitor coverage in December, also offers a responsive site
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Capital One 360 Homepage – Desktop, Tablet & Smartphone
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MOBILE FINANCE: 2014 AND BEYOND
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THREE TAKEAWAYS FOR FINANCIAL SERVICES FIRMS
1. Firms continue to improve their account information, research and transaction features, although capabilities are still limited relative to websites
2. While mobile apps become more powerful, firms are also prioritizing accessibility so that clients have the option to make key data easier to reach
3. Between responsive websites and greater integration between apps and mobile sites, the lines between different platforms and channels will continue to blur
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WHAT’S NEXT?
Firms will increasingly tailor the mobile experience to the specific client
o As mobile platforms become more powerful, firms will personalize the experience and give clients customizable options to bring the information and tools most important to them to the forefront
Future mobile finance developments will increasingly draw on ideas and inspiration from outside of the financial services industry
o Firms are not just competing with each other, but with the best mobile apps on the market as well to provide a positive mobile user experience
Although cross-platform development remains a challenge, alternatives are still in their infancy
o The first implementations of Responsive Web Design and HTML5 are not yet ready to replace apps for most customer interactions
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WHAT’S NEXT?
Wearable technology has the potential to create an always-on, hands-free, intimate mobile experience that enriches interactions with the real world rather than distracting from it
o Currently, Google Glass is only available to select users, but wearable computing devices are expected to grow substantially in the future
o In August, Fidelity released a demo of its Glassware app offering news, quotes, account updates; Glass-specific features include voice “pass phrase” login and logo scanning to find quotes
o Discover and Wells Fargo have also made initial efforts to develop for Glass
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Fidelity Google Glass Demo 22
CORPORATE INSIGHT THOUGHT LEADERSHIP
Tablet-Friendly Web Design: Best Practices for Financial ServicesThe study examines the tablet-friendly website features provided by four leading firms across financial services and provides recommendations for financial services firms building tablet-optimized websites.
Senior Citizens & Mobile Finance: Design & Support Solutions to Empower the Senior SetUsing CI’s user-testing expertise and ongoing mobile finance research, this slide deck highlights specific areas where seniors may struggle with financial services apps and offers design and support solutions that will give this valuable audience the comfort and confidence to engage in mobile finance.
Optimizing the Online & Mobile Experience for Retirement Plan ParticipantsThis slide deck features industry best practices and includes five recommendations for DC plan providers looking to improve their Web and mobile offerings.
2013 Mobile Finance Trends and InnovationsThis slide deck includes commentary on mobile developments, key takeaways for financial services firms and thoughts on what’s next for mobile finance.
The Millennial Opportunity WhitepaperThis whitepaper examines the marketing tactics, strategies and online resources leading financial institutions are using to connect with Millennials. This is also available as a slide deck.
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ABOUT THE AUTHOR
DANIEL J. WIEGANDSENIOR ANALYSTMOBILE RESEARCH AND CONSULTING
Dan Wiegand leads Corporate Insight’s mobile finance research efforts and is the Senior Analyst for CI’s Mobile Monitor service. He has conducted extensive research on mobile finance with a focus on the mobile apps, platforms and capabilities leading financial services firms offer to prospects and clients.
Dan’s past work in the space includes the Money on the Move: Mobile Finance Review 2011 and 2012 Mobile Leaders reports that offer a comprehensive look at the mobile landscape. Dan has also authored a number of thought leadership pieces and studies focusing on tablet Web design, iPad apps, mobile transaction capabilities, mobile security and more.
Dan graduated from Harvard University in 2006 and has been a member of the Corporate Insight team for the last seven years. He also works as a senior consultant and project manager on CI’s Consulting Services team.
CONTACT DAN
(646) 432-5483 [email protected]
Connect with Dan