As posted on Internet Evolution (http://www.internetevolution.com/)
Bank of America has been in the news of late with some mind-blowing numbers on new adoption rates on their iPhone app. The bank says some 200,000 or more customers each month are subscribing to this new service.
When I recently posted on Twitter that banks were slow to innovate around mobile, I got a bunch of replies suggesting that mobile banking app deployment like BofA’s was evidence that my position on this was wrong. So I thought I should clarify.
Currently, the typical mobile banking functionality on an iPhone app includes an ATM locator, balance checking, transfers, and bill payment. These are all things I can do already on my phone without an iPhone app. Admittedly the App phone interface makes this interaction a lot easier, but it doesn’t give me a full suite of banking products or services.
I generally can’t apply for a personal loan, open a term deposit, apply for travel insurance, or trade stocks, but these are fairly typical Internet banking solutions already available today. This may be because if you added all this functionality to the one iPhone app it would just be too complex to navigate, thus losing a large part of its value proposition – it’s simplicity.
The solution to this richer functionality quandary will likely be targeted product recommendations and relationship offers integrated into our mobile banking experience with multiple, distinct apps from the same bank.
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