Post on 12-Apr-2017
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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
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• Artificial Intelligence
• iOS Optimization
• Social Media Influence
• Key Takeaways
Introduction
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.
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2017 Should See Mobile Finance Apps Grow in Importance and Sophistication
Recent Trends & Innovations
• Biometric Authentication
• 3D Touch
• Card Management
• Customization & Personalization
• Voice Technology
• Siri Integration
• DC Plan Mobile Access
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• 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
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• 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
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• 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
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• 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
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• E*TRADE provides VoiceOversupport 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.
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• 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
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• 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
2017 and Beyond• Artificial Intelligence
• iOS Optimization
• Social Media Influence
• Key Takeaways
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• 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.
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• 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
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• 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
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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
About Us• Corporate Insight
• Mobile Monitor
• 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
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About Corporate Insight
• 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
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Mobile Monitor’s Cross-Industry Coverage Set
About Mobile Monitor
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