Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Mobile Finance: 2016 Trends and Innovations

1,143 views

Published on

2015 saw financial institutions continue their shift toward a mobile-centric approach, as this channel quickly becomes the primary means of interaction between consumers and firms. According to a March 2015 report from the Federal Reserve, 35% of mobile phone users with a bank account used mobile banking in 2014, up 150% from 2010. Financial services firms continued to improve and refine their smartphone capabilities, and have begun to capitalize on new and exciting devices such as wearables. Traditional, established players are also taking inspiration from fintech firms and bitcoin wallet providers to provide a better experience to their clients.

In December 2014, we published our year-end review of interesting and noteworthy mobile finance trends that had occurred that year. Now, at the start of 2016, we take at look at how those trends have advanced and highlight some new developments that have emerged.

Published in: Economy & Finance
  • Be the first to comment

Mobile Finance: 2016 Trends and Innovations

  1. 1. 1
  2. 2.  Introduction  2015 Mobile Trends & Innovations  2016 and Beyond  About Us Table of Contents • Wearable Technology • 3D Force Touch • Widgets & Previews • Transactions • Mobile Account Openings • Security • Mobile Innovators • Wearables • Virtual & Augmented Reality • Bitcoin Wallet Security • Key Takeaways• Corporate Insight • Mobile Monitor 2
  3. 3. Introduction
  4. 4. 2015 saw financial institutions continue their shift toward a mobile-centric approach, as this channel quickly becomes the primary means of interaction between consumers and firms. According to a March 2015 report from the Federal Reserve, 35% of mobile phone users with a bank account used mobile banking in 2014, up 150% from 2010. Additionally, 52% of all smartphone owners have used mobile banking in the last 12 months.1 Building a strong mobile offering can help reinforce a positive relationship with clients, especially younger, more tech-focused Millennials. As a result, mobile finance apps continue to evolve to provide consumers with the information they want, when they want it. 4 Consumer and Mobile Financial Services 2015. Federal Reserve Board. March 2015. Financial services firms continued to improve and refine their smartphone capabilities, and have begun to capitalize on new and trendy devices such as wearables. Traditional, established players are also taking inspiration from fintech firms and bitcoin wallet providers to provide a better experience to their clients. In December 2014, we published our year-end review of noteworthy mobile finance trends that had occurred that year. Now, at the start of 2016, we take at look at how those trends have advanced and highlight some new developments that have emerged. We supplement this report with our recent research on mobile account opening, Apple Watch apps, money movement and fintech mobile innovators. Keeping up with Mobile Finance
  5. 5. 2015 Mobile Trends & Innovations • Wearable Technology • 3D Force Touch • Widgets & Previews • Transactions • Mobile Account Openings • Security • Mobile Innovators
  6. 6. • The Apple Watch was released on April 24, 2015 and had an immediate impact on the financial services industry • While other wearable devices had been on the market for several years (e.g., Pebble), few financial services firms had invested any effort in developing apps on these platforms • In less than a year since its release, many financial services firms have already updated their iPhone apps to support the Apple Watch, including Bank of America, Capital One, Charles Schwab, Citi, Discover, E*TRADE, Fidelity, TD Ameritrade, USAA and Wells Fargo The release of the Apple Watch reenergized the wearables market 58% 17% 9% 8% 2015 Smart Wristwear Market Share Apple Watch Android Wear Pebble RTOS 6 Wearable Technology Source: IDC
  7. 7. • While the Apple Watch may one day offer robust functionality, financial services firms are limited in what they currently provide clients  Banks and credit card providers tend to only offer account balance details  Most brokerage firms only provide basic information about markets and watch lists • Charles Schwab and TD Ameritrade stand out for allowing clients to initiate trades via the Apple Watch, though the transactions must be completed on the synched iPhone • Fidelity offers detailed market information and charts that effectively utilize the Apple Watch’s limited screen space Apple Watch capabilities from traditional firms remain limited in scope Charles Schwab Initiate Trade 7 Fidelity Markets Fidelity Details Wearable Technology
  8. 8. • Robinhood allows clients to complete a trade directly through its Apple Watch app Fintech investing, budgeting and P2P firms provide more robust transaction capabilities 8 Robinhood Trade Process Square Cash Payment • Additional transaction capabilities at other firms include deposits and contributions toward goals (Acorns and Betterment) and P2P payments (Square Cash) Acorn Deposits Betterment Deposits Wearable Technology
  9. 9. • 3D Touch provides different interactions depending on how hard the user presses on the screen, including what Apple calls “Peek and Pop” and “Quick Actions” • Users can tap firmer than usual on a screen component to get a peek at what it consists of, and then tap more firmly to “pop” the window into full view  On the USAA credit card Transactions screen, clients can use 3D Touch on a transaction to view additional details without navigating to a separate details screen • Quick Actions menu options appear when users press firmly on app icons from the phone’s Home screen  USAA and Vanguard clients can use 3D Touch on an app icon to gain quick access the most commonly used sections of the apps Vanguard Quick Actions USAA Quick Actions USAA Peek and Pop 9 3D Force Touch Apple introduced 3D Touch capabilities to its iPhone 6s, providing users with a new way to interact with apps
  10. 10. Widgets  Firms including Discover, E*TRADE, Fidelity, Fifth Third and Merrill Lynch/Edge all offer iOS and Android widgets Widgets and previews offer quick access to account information without logging in 10Discover Card Widget - iPhone E*TRADE & Charles Schwab Widgets - Android • Access to account balances is a vital aspect of any firm’s mobile app • With that in mind, firms have developed two ways to provide clients with quick access to their balances: In-App Account Previews  Firms including Discover, Fidelity, Fifth Third, PNC and Wells Fargo offer account previews without having to log in Citibank Mobile Snapshot - Android Widgets & Previews
  11. 11. • Ally Bank and U.S. Bank introduced rush delivery on bill payments • Retirement firms introduced new IRA contribution capabilities  USAA now allows customers to make contributions to their IRA  Voya Financial’s MyOrangeMoney retirement projection tool allows participants to update their contribution rate • TD Ameritrade clients can create new custom option strategies from the firm’s thinkorswim app by choosing up to four option legs 11 thinkorswim Custom OptionU.S. Bank Express Bill Pay Transactions Several firms improved or enhanced their existing transaction capabilities
  12. 12. • Bank of America, Fidelity, KeyBank, USAA, and Vanguard allow clients to open a new account directly from their mobile apps  Expedited applications with pre-filled information for existing clients help to streamline the process • USAA and Wells Fargo (mobile site) offer an innovative feature that auto-populates key fields in the application with information drawn from a photo of one’s drivers license 12 Bank of America Expedited Application USAA Photo Capabilities • Of the 27 firms tracked by Mobile Monitor, 19% now offer the ability to start a new relationship via their mobile app, while 52% provide access to a mobile-optimized account application when visiting the firm’s site from a mobile device Mobile Account Opening Leading firms have finally begun to offer a mobile account opening experience
  13. 13. • Discover, USAA and Capital One Wallet’s apps include the ability to temporarily lock or freeze a credit card if it is misplaced or stolen • Biometric security is increasingly prevalent with Touch ID as the most common implementation  44% of the firms covered in Mobile Monitor now provide Touch ID login • Bank of America and Chase provide an alternative second-factor authentication option to log in with the use of a token 13 Discover Freeze Account Chase – Use Token Security Mobile security continues to be a focus for enhancements
  14. 14. • Innovators such as Square Cash and Venmo borrow mobile-first social design characteristics to simplify the registration and use of the app  Venmo customers can link a Facebook account and send money to people on their friends list  Square Cash’s payment activity mimics that of a messaging interface, drawing inspiration from outside of financial services • Acorns, Coinbase and Robinhood use account integration to quickly link multiple external accounts  Customers can simply choose their bank from a set of logos and enter their online banking username and password to establish a connection 14Venmo Enrollment Coinbase Account IntegrationSquare Cash Payment Activity Mobile Innovators Fintech startups are offering a more streamlined registration/aggregation experience
  15. 15. Mobile Finance: 2016 and Beyond • Wearable Technology • Virtual & Augmented Reality • Bitcoin Wallet Security • Key Takeaways
  16. 16. • We expect to see more financial services firms introduce new transaction capabilities to their wearable apps as developers learn the strengths and weaknesses of the platform  Banks will support transfers, P2P payments and bill pay with a tap from the app  Brokerages will allow clients to initiate and even complete trades on the Apple Watch CIBC - Transfers 16Robinhood - Trade Wearable Technology Wearable devices will begin to provide a wider range of transaction capabilities
  17. 17. • With the release of Oculus Rift and Samsung Gear VR last year, firms are beginning to experiment with virtual reality capabilities to create visual and fun experiences for clients  Fidelity created the StockCity app for Oculus in 2014. It visualizes portfolio data as a city where different building heights correlate to stocks at different prices. • On a more practical level, USAA offers a “Specs” feature for homebuyers that uses augmented reality to view property information • Magic Leap, the augmented reality startup, secured $793.5 million in funding from several prominent investors including Fidelity and J.P. Morgan. The technology could allow firms to superimpose 3D imagery over real world experiences. 17 USAA’s Specs Feature Fidelity StockCity Oculus App Virtual & Augmented Reality Magic Leap Demo Video Firms will explore new uses for augmented & virtual reality apps
  18. 18. • While many financial institutions use two-factor authentication at login, this technology can be leveraged on a per-transaction basis as an optional layer of additional security  GreenAddress requires two-factor authentication on a per-transaction basis; Amory requires users to enter their passphrase in order to conduct an outgoing transaction • Firms may adopt mnemonic passphrases to replace credentials or as a password recovery tool  Bitcoin wallets typically use a set of between 6-15 random words (e.g., “angry owls cereal carwash bubble curtain”)  Breadwallet goes as far as requiring customers to create a new phrase if they attempt to take a screenshot of the phrase with their mobile device • Blockchain offers a password strength tool in the app to ensure users are creating strong credentials 18 Breadwallet Passphrase & Warning GreenAddress Two-Factor Security & Blockchain Password Strength Tool Bitcoin Wallet Security Firms may begin to adopt the tighter security standards used by Bitcoin wallets
  19. 19. • Financial services firms need to recognize that a growing number of clients want a “mobile-only,” or at least “mobile-first,” relationship with them. Today, this kind of relationship is nearly impossible, at least with the major banks, brokerages and card issuers, since so many account capabilities and features are only accessible from these firms' websites. When mobile apps were first introduced, they were viewed as complementary access points to the website for users on the go. Now a growing consumer segment would prefer to use the mobile channel as the main way of interacting with their financial services providers. Firms should provide such a "mobile-only" or "mobile-first“ experience, or they may lose clients to more cutting-edge startups and fintech firms that do provide a truly mobile-focused experience. • As mobile devices evolve, the possibility to provide a broader range of enhanced capabilities grows. Many of the most common functions available on today’s mobile platforms were not feasible or compatible with the software or hardware found on the first generation of mobile devices. As new and improved smartphones are introduced to the market, financial services firms have the opportunity to provide innovative products, services and experiences. • Customer experience is being benchmarked across verticals. While innovators such as Betterment, Wealthfront and Venmo have disrupted the competitive landscape within financial services, customer expectations are being shaped by other cutting-edge websites they use in their daily lives. The superb experience provided by companies like Apple, Amazon, Facebook and Google has set a new bar that financial services firms must clear if they hope to delight their customers. With that in mind, it’s critical that financial institutions look beyond their own industry to benchmark the experience they provide against the offerings of these best-in-class organizations. 19 Key Takeaways for Financial Services Firms
  20. 20. About Us • Corporate Insight • Mobile Monitor
  21. 21. • Corporate Insight is a New York-based research and consulting firm that helps financial institutions improve their customer experience and establish a compelling competitive advantage • Our Monitor research offers ongoing competitive intelligence by industry vertical, reporting on the customer experience from a unique firsthand perspective • Our Consulting Services team provides a range of strategic and tactical research services, with a focus on emerging technology and disruptive forces. Our services include:  Custom research, including mobile-focused engagements  Survey research, including investor, retirement plan participant and bank customer surveys  Industry-wide studies on key topics (e.g., Millennials, fintech startups, etc.)  User research (e.g., user testing, heuristic reviews, etc.)  Website and Mobile Audits • For more information about Corporate Insight, please contact Grace Lei at (646) 929-5148 or glei@corporateinsight.com. 21 About Corporate Insight
  22. 22. • Mobile Monitor is Corporate Insight’s subscription research service that tracks mobile development across the bank, brokerage, credit card and asset management industry segments. • We provide our subscribers with:  Bi-weekly Updates reporting on mobile platform developments at over 100 firms  In-depth Quarterly Reports on such topics as:  Mobile Leaders  Mobile Account Opening  Apple Watch Apps  Money Movement  Quarterly capabilities matrix and films  Analyst support 22 Mobile Monitor’s Cross-Industry Coverage Set About Mobile Monitor

×