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1
 Introduction
 Recent Trends & Innovations
 2017 and Beyond
 About Us
Table of Contents
• Biometric Authentication
• 3...
Introduction
The mobile channel is increasingly important to retail financial services firms. This is driven by a variety of
factors, i...
Recent Trends &
Innovations
• Biometric Authentication
• 3D Touch
• Card Management
• Customization & Personalization
• Vo...
6
• All 27 firms in our Mobile Monitor coverage set now include support for Touch ID on their iOS devices, up from
just 44...
7
• 3D Touch allows for different interactions depending
on how hard the user presses on the screen, including
what Apple ...
8
• Capital One Mobile, Capital One
Wallet, Discover and USAA’s
apps include the option to
temporarily freeze or lock a
cr...
9
• Fidelity offers a unique
personalized Feed that
delivers news and market
information based on clients’
holdings, watch...
10
• E*TRADE provides VoiceOver
support for login, settings, stock
trading and account balances
allowing customers make vo...
11
• After Apple’s last software update, devices
running iOS 10 now have greater integration
between third-party apps and ...
12
• DC plan providers were slower to embrace mobile than banks and
brokerage firms, but this began to change in the last ...
2017 and Beyond
• Artificial Intelligence
• iOS Optimization
• Social Media Influence
• Key Takeaways
14
• AI and chatbots simplify the financial services customer experience by
providing timely assistance at a low cost to t...
15
• We expect cutting edge firms to take advantage
of new iOS features that allow clients to access
features of their pla...
16
• In the last year, Fidelity redesigned its phone app,
introducing a personalized and visually appealing Feed
that rese...
17
Most financial services firms have mastered the basics of mobile account information and
transaction capabilities. Firm...
About Us • Corporate Insight
• Mobile Monitor
• Corporate Insight is a New York-based research and consulting firm that helps financial institutions improve
their custo...
• Mobile Monitor is Corporate Insight’s subscription research
service that tracks mobile development across the bank,
brok...
21
Recent Syndicated Studies
Satisfying Today’s Retirement Plan Participant
This study shares the results of our September...
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Mobile Finance: 2017 Trends and Innovations

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The mobile channel is increasingly important to retail financial services firms. This is driven by a variety of factors, including the widespread adoption of smartphones, more powerful phone operating systems and,
crucially, the rise of Millennial customers.

In our February 2016 survey of online investors, 71% of Millennials indicated that they had logged into their
brokerage account using a mobile device in the past 12 months, compared to 44% of Baby Boomers. Further,
51% of Millennials said that their brokerage firm’s mobile capabilities were “very important” or “extremely
important” to them, versus 23% of Baby Boomers. Our recent surveys of retirement plan participants and bank
customers show similar generational differences. Collectively, these surveys suggest mobile will increasingly define the digital experience for financial services as Millennials become the industry’s core customer base.

To accommodate changing customer demographics and the growing significance of the mobile experience, we expect financial services firms to continue to enhance their apps this year. Developments may include 3D Touch and leveraging such cutting edge capabilities as artificial intelligence (AI), voice technology and expanded biometric authentication techniques. Some will likely introduce more personalized content and offer easier access to key account information (e.g., pre-login), making it simpler for clients to interact with them. In this annual mobile trends
review, we explore these and other trends and innovations that are likely to shape the mobile experience this year and beyond.

Published in: Economy & Finance

Mobile Finance: 2017 Trends and Innovations

  1. 1. 1
  2. 2.  Introduction  Recent Trends & Innovations  2017 and Beyond  About Us Table of Contents • Biometric Authentication • 3D Touch • Card Management • Customization & Personalization • Voice Technology • Siri Integration • DC Plan Mobile Access • Corporate Insight • Mobile Monitor 2 • Artificial Intelligence • iOS Optimization • Social Media Influence • Key Takeaways
  3. 3. Introduction
  4. 4. The mobile channel is increasingly important to retail financial services firms. This is driven by a variety of factors, including the widespread adoption of smartphones, more powerful phone operating systems and, crucially, the rise of Millennial customers. In our February 2016 survey of online investors, 71% of Millennials indicated that they had logged into their brokerage account using a mobile device in the past 12 months, compared to 44% of Baby Boomers. Further, 51% of Millennials said that their brokerage firm’s mobile capabilities were “very important” or “extremely important” to them, versus 23% of Baby Boomers. Our recent surveys of retirement plan participants and bank customers show similar generational differences. Collectively, these surveys suggest mobile will increasingly define the digital experience for financial services as Millennials become the industry’s core customer base. To accommodate changing customer demographics and the growing significance of the mobile experience, we expect financial services firms to continue to enhance their apps this year. Developments may include 3D Touch and leveraging such cutting edge capabilities as artificial intelligence (AI), voice technology and expanded biometric authentication techniques. Some will likely introduce more personalized content and offer easier access to key account information (e.g., pre-login), making it simpler for clients to interact with them. In this annual mobile trends review, we explore these and other trends and innovations that are likely to shape the mobile experience this year and beyond. 4 2017 Should See Mobile Finance Apps Grow in Importance and Sophistication
  5. 5. Recent Trends & Innovations • Biometric Authentication • 3D Touch • Card Management • Customization & Personalization • Voice Technology • Siri Integration • DC Plan Mobile Access
  6. 6. 6 • All 27 firms in our Mobile Monitor coverage set now include support for Touch ID on their iOS devices, up from just 44% in January 2016 • Additionally, 41% of the firms we track also use fingerprint recognition for expedited login on Android devices • USAA stands out for offering alternative biometric login options that include face and voice recognition, which is consistent with the firm’s long track record as a mobile innovator • Other firms are liable to embrace similar biometric-based security practices in 2017 Firms focus on security, with biometric authentication taking center stage Biometric Authentication Merrill Lynch Touch ID Chase Android Fingerprint USAA Voice Authentication
  7. 7. 7 • 3D Touch allows for different interactions depending on how hard the user presses on the screen, including what Apple calls “Quick Actions” and “Peek and Pop”  Quick Actions: Trigger a menu on the device Home screen to expedite navigation  Peek and Pop: Reveals additional details without directing users to a new screen • Of the 27 firms covered in Mobile Monitor, 63% include Quick Actions menu options that appear when the user presses firmly on app icons from the iPhone’s Home screen • Peek and Pop actions are less common among firms, with only USAA, Capital One Wallet and Vanguard offering this feature • Vanguard’s Peek and Pop feature allows clients to preview content while remaining in their current view and then pop it into full view Most firms utilize 3D Touch, allowing clients with a 6s iPhone or newer to accomplish tasks faster and in fewer steps 3D Touch Fidelity 3D Touch Quick Actions Vanguard 3D Touch Peek and Pop
  8. 8. 8 • Capital One Mobile, Capital One Wallet, Discover and USAA’s apps include the option to temporarily freeze or lock a credit card if it’s lost or stolen • Bank of America and BB&T offer the ability to lock a card as well, but only for debit cards • Bank of America, BB&T, Discover, USAA and Wells Fargo customers can order and replace debit and credit cards via the app • Capital One Mobile, Citi, Discover, Fifth Third and USAA allow users to activate new cards within their apps Card issuers are empowering customers with greater card management capabilities Card Management Capital One Lock Card Discover Freeze Account Bank of America Card Settings
  9. 9. 9 • Fidelity offers a unique personalized Feed that delivers news and market information based on clients’ holdings, watch lists, recent research and their preferred investing topics • Fidelity also allows clients to customize the tabs displayed on the menu • Other firms, including BB&T, E*TRADE, Merrill Edge/Lynch and Scottrade, allow clients to customize and arrange the information that appears on their app dashboard Firms are experimenting with greater customization and personalization Customization & Personalization Fidelity Feed Preferences Fidelity Feed Fidelity Feed Topics
  10. 10. 10 • E*TRADE provides VoiceOver support for login, settings, stock trading and account balances allowing customers make voice commands in these sections of the app • USAA’s Virtual Mobile Assistant supports voice commands to help clients navigate the app • Ally and Fidelity’s Android apps include voice-assisted technology, allowing clients to ask questions • Santander UK’s app currently supports simple spoken questions but soon clients will be able to fully service their accounts using the voice assistant* In-app Virtual Assistants are emerging as AI technology improves Santander’s SmartBank App Store Preview E*TRADE VoiceOver Voice Technology USAA Virtual Mobile Assistant * Santander Launches ‘Voice Banking” Technology. Finextra.
  11. 11. 11 • After Apple’s last software update, devices running iOS 10 now have greater integration between third-party apps and Siri • Discover is one of the first card issuers to allow clients to make a payment using the Siri function on iOS devices  Users can now say a phrase like “pay my Discover card,” and the virtual assistant will collect the amount to be paid and submit the payment  This process allows clients to bypass the Discover app when setting up a payment Integration with Siri allows clients to make card payments through the virtual assistant Siri Integration Discover Siri Integration
  12. 12. 12 • DC plan providers were slower to embrace mobile than banks and brokerage firms, but this began to change in the last 24 months • Providers now recognize that mobile account access is crucial to effectively engage young participants • In line with this, 70% of firms tracked by our Retirement Plan Monitor service now offer an iPhone app while 80% offer a mobile- optimized site • 13 out of 20 retirement plan providers in our coverage set offer at least one transaction capability via mobile, an increase from only two firms in 2013 • We expect the breadth of retirement plan mobile capabilities to increase in 2017 as Millennials become the majority of the workforce • Providers that only offer mobile-optimized sites will feel increasing pressure to develop apps as consumers generally prefer these over browser-based platforms  Our 2016 survey found that 54% of plan participants reported accessing their retirement account via an iPhone app while only 16% used a mobile site Mobile access is increasingly important to DC plan participants DC Plan Mobile Access Empower iPhone app Voya iPhone app
  13. 13. 2017 and Beyond • Artificial Intelligence • iOS Optimization • Social Media Influence • Key Takeaways
  14. 14. 14 • AI and chatbots simplify the financial services customer experience by providing timely assistance at a low cost to the firm • Bank of America recently announced its plans to introduce a new digital assistant in 2017  The digital assistant, named Erica, will be available on the bank’s mobile app  Customers will be able to interact with Erica through text or voice technology  Erica will use artificial intelligence, predictive analytics and cognitive messaging to help complete tasks (e.g., make payments, view balances, save money and reduce debt)* • We expect other firms to unveil similar capabilities in 2017 and beyond More firms will incorporate AI into their customer service offerings Artificial Intelligence Bank of America “Erica” Preview *Meet Erica, Bank of America’s New Voice AI Banking System. Forbes 2016.
  15. 15. 15 • We expect cutting edge firms to take advantage of new iOS features that allow clients to access features of their platform without opening the app (e.g., Siri) • Discover, Square Cash and Venmo now work with the iPhone’s Siri feature, allowing users to send money via a simple voice command without needing to open the apps (e.g., “Send one dollar to Pat using Venmo”) • Apple allows users to send money through iPhone’s iMessage feature as a text message Firms will take advantage of iOS improvements to empower clients to complete simple tasks without having to log into the mobile app iOS Optimization Venmo Siri Integration iPhone Send Money
  16. 16. 16 • In the last year, Fidelity redesigned its phone app, introducing a personalized and visually appealing Feed that resembles a social media news feed • We expect other firms to borrow design and experience elements from non-financial apps to enhance these platforms with more interesting and visually stimulating features Firms will look to introduce elements into their apps that are outside the traditional norm of financial services mobile offerings Social Media Influence Fidelity Feed
  17. 17. 17 Most financial services firms have mastered the basics of mobile account information and transaction capabilities. Firms are now shifting their efforts toward exploring ways to differentiate their mobile offerings, leveraging new technology to make it easier for clients to interact with them. Looking ahead, we expect to see the following developments in 2017: • Firms will leverage the emergence of improved AI technology to offer more self-service features within their apps, including voice command capabilities and virtual assistants • Financial institutions will accelerate efforts to integrate personalization capabilities into their apps to meet customers’ growing expectations for a tailored mobile experience • Firms will offer more useful functionality and information pre-login, taking advantage of new iOS capabilities like integration with Siri and 3D Force Touch • More firms will adopt biometric authentication techniques in order to provide a more secure and convenient mobile experience for logging in and conducting high-risk activities Key Takeaways Key Takeaways
  18. 18. About Us • Corporate Insight • Mobile Monitor
  19. 19. • 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., Next-Generation Investing, Millennials, fintech startups, etc.)  Website and Mobile Audits • For more information on Corporate Insight, please contact us at 212-832-2002 or by email here 19 About Corporate Insight
  20. 20. • 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 Sites  Alerts  Authentication & Security  Menu Design and Navigation  Quarterly capabilities matrix and films  Analyst support 20 Mobile Monitor’s Cross-Industry Coverage Set About Mobile Monitor
  21. 21. 21 Recent Syndicated Studies Satisfying Today’s Retirement Plan Participant This study shares the results of our September 2016 survey of close to 1,500 DC plan participants, shedding light on participant satisfaction with providers and examining such key aspects of the relationship as advice and planning offerings, communication, mobile apps and websites. The study also reviews how participant behaviors and preferences have changed since 2013 and identify the web and mobile features that matter most to users. Download study preview Millennials Revisited: Financial Services and the Digital Generation This report, a follow-up to our 2014 study on Generation Y, helps financial services marketers, product managers and strategists better understand Millennials and identify effective tactics for serving this demographic. The study addresses key topics such as how Millennials’ financial attitudes and behaviors differ from earlier generations, what financial product features Millennials value most and how financial services firms can effectively use technology and social media to engage this group. Download study preview Next-Generation Investing: The Incumbents Arrive In our annual review of the digital advice space, we explore key trends and opportunities in the market, examine digital advice platforms from incumbent firms and leading fintech firms, and discuss the implications these technologies have for the financial services industry. We also provide survey-based insights into the investors who are most likely to embrace digital advice and analyze how digital advice is shaping markets beyond retail investing, including the defined contribution and life insurance markets. Download study preview Blockchain Solutions and the Future of Finance Our first in-depth study on blockchain explores the technology’s potential short-term and long-term impact on the financial services industry, helping readers understand how blockchain could simplify financial processes, maximize efficiency and improve the end-user experience. The study identifies the major trends affecting blockchain implementation and profiles 14 organizations that are creating blockchain solutions for financial services. It also illustrates seven potential blockchain use cases, including loyalty programs, digital identity management and cross-border payments. Download study preview

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