How traditional banks are innovating the basics to provide customers with an Uber-like mobile banking experience

Abstract

The mobile space is evolving rapidly as banks in the developed world are taking a ‘mobile-first’ approach to digital development. The need to take a mobile-first approach is driven by a handful of factors, one of which is that the mobile device is increasingly being used as a channel to consume goods and services. From buying a flight ticket to booking a household cleaner, there is an app for almost everything. These apps are changing customers' expectations as they expect a seamless experience, minimal points of friction and value from engaging with the app. Time and time again, Uber-like organisations are cited as the apps that have and will change the app-based economy, and banks are using the success of this app as guidance for developing great mobile banking experiences. As banks look to Uber-like organisations to improve the experience, it is tempting to roll out new, untested experiences in an attempt to ‘revolutionise’ the mobile banking space. However, this paper will demonstrate that banks should instead focus on fixing the basics and create an Uber-like experience within core banking functionality. Although it is worth noting that the distinction between mobile and internet is blurring, and some argue that one can use internet banking through mobile devices, we believe there are clear benefits to investing in apps. First, looking at distribution, customers will look for a brand in various ways and whether a bank decides to serve these customers around HTML, web and others. It is important to ensure customers can find the solution in their respective app store, search engine and the public website. The second is the development of native technology. HTML, hybrid technologies and native code have improved significantly over the last couple of years and each has its respective advantages and disadvantages which means today there is no such a thing as one solution fits all. Notwithstanding some potential disadvantages such as increased cost (build for iOS, Android and Windows Phone), we wanted to highlight the fact that native code allows for certain additional layers of security on the device (eg device registration) that are not yet fully possible in HTML and hybrid.