Olof Schybergson asks why the UK has been slow to recognise the wealth of opportunities associated with mobile banking
Pockets could become lighter in the next few years – and not just because of rising prices. Physical wallets could soon suffer the fate of the address book – confined to the back of a bedroom drawer gathering dust. Soon, your mobile could replace your cash.
Banking on it
At the moment, mobile payments are the words on everyone’s lips. The entire digital money ecosystem is set to be worth $170 million by 2015, according to recent Juniper research. Over the past few months we have witnessed a flurry of announcements from huge mobile operators like Vodafone UK, Everything Everywhere and Telefonica UK who are launching a joint venture to encourage adoption of mobile payments. Google recently announced its Google Wallet service, and handset operators are planning big launches for NFC-enabled devices. Mobile players are working together to accelerate the adoption of mobile payments – so the question many are asking is ‘where are the banks?’
We all take online banking for granted. Five years ago, online banking was a relatively new phenomenon, but now is not enough for our always-on, progressive lifestyles. Mobiles are glued to our palms – we use them to check the latest celebrity gossip, news, play games, take photos – but in fact rarely do we use them to make payments or check balances. Banks are missing out on cashing in on this crucial need to manage our finances in a way that fits in with our lifestyles.
It is important to address the issue of mobile banking as it stands. UK banks are only now beginning to see the opportunity in mobile banking, and they still have a lot of work to do before it really takes off. By taking too long to launch m-banking services, they could miss out on the wagon altogether. Unlike in Europe, where several progressive and innovative banks show an interest in digital and are engaging in new solutions, here in the UK few banks are making use of the existing tools available. This has resulted in the roll out of apps with limited functionality or user appeal.
Pair this with the amount of consumers who actively access the web from their smartphone every day. Consumer adoption of mobile devices is growing phenomenally, and smart devices are giving people more control over their lives. Information is now at anybody’s fingertips – there are apps for entertainment, weight loss, traffic navigation – but strangely, one of the most important areas that people want control over, money, has not progressed to its full potential. Next-generation banking helps people to make better financial decisions, giving people more control over their personal finances. But without a well designed, properly executed solution, many banks are missing the mark.
Held to account
The UK is far behind other countries when it comes to digital solutions. Progressive and innovative European banks, such as BBVA, are already creating and implementing mobile payment and mobile banking solutions. It is imperative that banks understand how consumers interact, behave, share and use this knowledge to design their services. Traditionally, banks have only communicated with customers on the telephone, in the branch, or through letters. It is time that mobile banking goes further than just limited balance statements and finding their local cash machine.
However, regulation and security concerns have so far made it hard for many banks to innovate. Customers will always be concerned about security, which is the main reason for the slow up-take within the industry. Yet this is no reason not to innovate altogether – without an improvement in services, banks risk losing current and future customers to new entrants into the market.
There are also lots of different platforms on the mobile market at the moment, meaning that the industry has been slow to develop in such a dynamic environment. There are over 2,500 different types of mobile device, running on different operating systems with different screen size and resolutions. As a result, mobile banking app development has been slow and arduous due to the different programming languages and technologies. It is important that a mobile banking app looks professional and works fluidly across all digital screens and platforms. Design is also key for banks when thinking about application development. Design standards of mobile banking applications have so far been fairly poor. iPad and iPhone users for example have high expectations from applications in terms of look, feel and intuitiveness which have not been met by mobile banking applications. Consumers don’t just want a rudimentary working platform, they also seek beauty and ease of use and platforms that ignore these core concepts face an uphill struggle.
Show me the money
Design professionals such as Fjord have to strike a balance between complexity and usability. We have to create complex data representations and design within the restrictions of the banks’ IT infrastructure whilst delivering application on time, on budget, and with a great user experience. We begin by asking where the app fits within the banking ecosystem of branch, ATM and mobile, and how can these all be kept up to date in real time. It is necessary to obtain a complete picture of the landscape in which the service will be available. Due diligence must include a detailed map including target users, insight into brand principles, a portrait of the industry and a feel for what direction it’s heading in, along with technology enablers and position in the market. When all these pieces fit together the user experience can be brought to life using lateral thinking and rapid visualisation techniques, such as storyboarding and sketching, to ensure that the solution is easy to use, and has the right look and feel for its specific platform.
Businesses need to learn how to build bridges between organisational objectives and a quality user experience – getting an understanding of how a local customer interacts with online platforms. Anybody, including marketers, can make an app for a firm. However, the process is not as simple as you may think and goes beyond mere technical specifications. An app is another touch point that a brand can use to interact with its audience, so the design and flow must take into consideration user behavior – and use it to lead visionary design.
It is in the banks’ interests to create great mobile banking solutions. Apps spread through great reputation, word of mouth and brilliant reviews. Friendly and useful digital services have been shown to build loyalty and aid customer acquisition, helping keep customers informed and allowing them to make better purchasing decisions. Benefits to the bank also include empowering the user to manage their finances more effectively, which in turn means reduced costs of streamlining customer interaction.
We are in a really exciting place at the moment when it comes to digital money and mobile banking. The mobile is merging with the wallet, and at some point in the future we will all be paying for goods and services with our phones – as long as banks team up with others in the ecosystem to make this happen. It is also imperative that banks clock the importance of good mobile banking applications before time runs out. Banks need to understand how consumers behave and interact with today’s technologies, and quickly, lest they fall behind and lose out to the competition.
Olof Schybergson, Founder and CEO, Fjord
www. fjordnet.com