MOBILE FINANCE

2014 TRENDS AND INNOVATIONS
DANIEL J. WIEGAND
SENIOR ANALYST, MOBILE RESEARCH & CONSULTING
FEBRUARY 2014
C...
ABOUT CORPORATE INSIGHT
Corporate Insight provides competitive intelligence and user experience research to the nation’s
l...
TABLE OF CONTENTS


Introduction



2014 Mobile Finance Trends and Innovations
o New Security Options Emphasize Accessib...
INTRODUCTION

4
KEEPING UP WITH MOBILE FINANCE
Mobile usage continues to grow, with an ever-greater portion of total Internet
traffic comi...
2014 MOBILE FINANCE TRENDS AND INNOVATIONS

6
NEW SECURITY OPTIONS EMPHASIZE ACCESSIBILITY


Discover now offers two faster access
options
o Quick View offers immediat...
NEW SECURITY OPTIONS EMPHASIZE ACCESSIBILITY


Other security customization options
added in late 2013
o TD Ameritrade pr...
iOS7 INFLUENCES DESIGN AND FUNCTIONALITY


Apple released the iPhone 5S & iOS7 in September
2013, featuring a redesigned ...
LEVERAGING SMARTPHONE CAPABILITIES: CAMERA


Mobile check deposit continues to become
an industry standard
o KeyBank (Jun...
LEVERAGING SMARTPHONE CAPABILITIES: CAMERA


Beyond deposits, U.S. Bank adds new
mobile photo capabilities from partner
M...
LEVERAGING SMARTPHONE CAPABILITIES: VOICE
E*TRADE has offered Nuance-powered voice
recognition since April 2012



USAA s...
LEVERAGING SMARTPHONE CAPABILITIES: ALERTS


Push notifications continue to grow as a
delivery options for market and acc...
RESEARCH OFFERINGS CONTINUE TO EXPAND


Investment firms steadily add to their research capabilities



New standout too...
FIRMS OF ALL TYPES ADD TRANSACTIONS


P2P payments grow among banks
o PNC Bank, Ally Bank & Citizens Bank partner
with Po...
NEW TABLET APPS: IPAD


New firms continue to add iPad apps
in 2013-2014

2014 MOBILE FINANCE TRENDS AND INNOVATIONS

o B...
NEW TABLET APPS: ANDROID


Some renewed interest in Android tablet optimization as well, with the first
new Android table...
EARLY ADOPTERS INTRODUCE RESPONSIVE SITES


As of July 2013, no firms CI tracked used responsive web design



Since the...
MOBILE FINANCE: 2014 AND BEYOND

19
THREE TAKEAWAYS FOR FINANCIAL SERVICES FIRMS
1. Firms continue to improve their account information, research and
transact...
WHAT’S NEXT?


Firms will increasingly tailor the mobile experience to the specific client
o As mobile platforms become m...
WHAT’S NEXT?


Wearable technology has the potential to create an always-on, hands-free,
intimate mobile experience that ...
CORPORATE INSIGHT THOUGHT LEADERSHIP
Tablet-Friendly Web Design: Best Practices for Financial Services

The study examines...
ABOUT THE AUTHOR
DANIEL J. WIEGAND
SENIOR ANALYST
MOBILE RESEARCH AND CONSULTING
Dan Wiegand leads Corporate Insight’s mob...
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2014 Mobile Finance Trends and Innovations

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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.

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.

Published in: Economy & Finance, Business

2014 Mobile Finance Trends and Innovations

  1. 1. MOBILE FINANCE 2014 TRENDS AND INNOVATIONS DANIEL J. WIEGAND SENIOR ANALYST, MOBILE RESEARCH & CONSULTING FEBRUARY 2014 COPYRIGHT 2014 CORPORATE INSIGHT, INC.
  2. 2. ABOUT CORPORATE INSIGHT 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. Press Coverage Connect With Us DANIEL J. WIEGAND MEDIA INQUIRIES Senior Analyst, Mobile Research & Consulting Please Contact Intermarket Communications: (646) 432-5483 (212) 888-6115 dwiegand@corporateinsight.com corporateinsight@intermarket.com 2
  3. 3. TABLE OF CONTENTS  Introduction  2014 Mobile Finance Trends and Innovations o New Security Options Emphasize Accessibility o iOS7 Influences Design and Functionality o Leveraging Smartphone Capabilities: Camera, Voice & Alerts o Research Offerings Continue to Expand o Firms of All Types Add Transaction Capabilities o New Tablet Apps: iPad & Android o Early Adopters Introduce Responsive Sites  Mobile Finance: 2013, 2014 and Beyond o Three Takeaways for Financial Services Firms o What’s Next?  Corporate Insight Thought Leadership  About the Author 3
  4. 4. INTRODUCTION 4
  5. 5. KEEPING UP WITH MOBILE FINANCE 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. 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 & Byers 5
  6. 6. 2014 MOBILE FINANCE TRENDS AND INNOVATIONS 6
  7. 7. NEW SECURITY OPTIONS EMPHASIZE ACCESSIBILITY  Discover now offers two faster access options o Quick View offers immediate access to basic balance details (July) 2014 MOBILE FINANCE TRENDS AND INNOVATIONS 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 PIN Discover Quick View & Capital One SureSwipe 7
  8. 8. NEW SECURITY OPTIONS EMPHASIZE ACCESSIBILITY  Other security customization options added in late 2013 o TD Ameritrade privacy mode hides balances while browsing apps 2014 MOBILE FINANCE TRENDS AND INNOVATIONS 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) USAA Menu & Chase Ultimate Rewards 8
  9. 9. iOS7 INFLUENCES DESIGN AND FUNCTIONALITY  Apple released the iPhone 5S & iOS7 in September 2013, featuring a redesigned user interface and new built-in functionality 2014 MOBILE FINANCE TRENDS AND INNOVATIONS 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 E*TRADE AirDrop o Examples include Ameriprise, Discover, KeyBank, PNC Bank, Scottrade, ShareBuilder, U.S. Bank, Vanguard  Most other firms made compatibility updates 9
  10. 10. LEVERAGING SMARTPHONE CAPABILITIES: CAMERA  Mobile check deposit continues to become an industry standard o KeyBank (June) o TD Bank (August) 2014 MOBILE FINANCE TRENDS AND INNOVATIONS 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 builtin 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 TD Ameritrade Deposit Check o Add a vehicle on Esurance by scanning VIN 10
  11. 11. LEVERAGING SMARTPHONE CAPABILITIES: CAMERA  Beyond deposits, U.S. Bank adds new mobile photo capabilities from partner Mitek Systems 2014 MOBILE FINANCE TRENDS AND INNOVATIONS 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 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
  12. 12. 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  2014 MOBILE FINANCE TRENDS AND INNOVATIONS  Shortly after, GEICO added Voice Assistance from “Lily”  Esurance is the latest firm with this capability, unveiled in January 2014 Esurance Voice Navigation 12
  13. 13. LEVERAGING SMARTPHONE CAPABILITIES: ALERTS  Push notifications continue to grow as a delivery options for market and account alerts o Fidelity (April) 2014 MOBILE FINANCE TRENDS AND INNOVATIONS 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) Fidelity & Scottrade Push Notifications 13
  14. 14. 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 2014 MOBILE FINANCE TRENDS AND INNOVATIONS 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 Charles Schwab & ShareBuilder Heat Maps 14
  15. 15. FIRMS OF ALL TYPES ADD TRANSACTIONS  P2P payments grow among banks o PNC Bank, Ally Bank & Citizens Bank partner with Popmoney 2014 MOBILE FINANCE TRENDS AND INNOVATIONS 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 PNC Bank Popmoney & Vanguard Manage My Money 15
  16. 16. NEW TABLET APPS: IPAD  New firms continue to add iPad apps in 2013-2014 2014 MOBILE FINANCE TRENDS AND INNOVATIONS 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 16 Scottrade Overview & Capital One Credit Card Summary
  17. 17. 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 2014 MOBILE FINANCE TRENDS AND INNOVATIONS o Wells Fargo – January 2014 TD Ameritrade Account Overview Wells Fargo Advisors Brokerage Account Summary 17
  18. 18. 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 2014 MOBILE FINANCE TRENDS AND INNOVATIONS o Santander Bank, added to CI’s Bank Monitor coverage in December, also offers a responsive site Capital One 360 Homepage – Desktop, Tablet & Smartphone 18
  19. 19. MOBILE FINANCE: 2014 AND BEYOND 19
  20. 20. 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 2014 AND BEYOND 3. Between responsive websites and greater integration between apps and mobile sites, the lines between different platforms and channels will continue to blur 20
  21. 21. 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 2014 AND BEYOND  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 21
  22. 22. 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 2014 AND BEYOND o Discover and Wells Fargo have also made initial efforts to develop for Glass Fidelity Google Glass Demo 22
  23. 23. CORPORATE INSIGHT THOUGHT LEADERSHIP Tablet-Friendly Web Design: Best Practices for Financial Services The 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 Set Using 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 Participants This 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 Innovations This 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 Whitepaper This 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. 23
  24. 24. ABOUT THE AUTHOR DANIEL J. WIEGAND SENIOR ANALYST MOBILE 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 dwiegand@corporateinsight.com Connect with Dan
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