mobile finance: 2017 trends and innovations

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Page 1: Mobile Finance: 2017 Trends and Innovations

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Page 2: Mobile Finance: 2017 Trends and Innovations

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

Page 3: Mobile Finance: 2017 Trends and Innovations

Introduction

Page 4: Mobile Finance: 2017 Trends and Innovations

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

Page 5: Mobile Finance: 2017 Trends and Innovations

Recent Trends & Innovations

• Biometric Authentication

• 3D Touch

• Card Management

• Customization & Personalization

• Voice Technology

• Siri Integration

• DC Plan Mobile Access

Page 6: Mobile Finance: 2017 Trends and Innovations

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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

Page 7: Mobile Finance: 2017 Trends and Innovations

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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

Page 8: Mobile Finance: 2017 Trends and Innovations

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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

Page 9: Mobile Finance: 2017 Trends and Innovations

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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

Page 10: Mobile Finance: 2017 Trends and Innovations

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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.

Page 11: Mobile Finance: 2017 Trends and Innovations

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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

Page 12: Mobile Finance: 2017 Trends and Innovations

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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

Page 13: Mobile Finance: 2017 Trends and Innovations

2017 and Beyond• Artificial Intelligence

• iOS Optimization

• Social Media Influence

• Key Takeaways

Page 14: Mobile Finance: 2017 Trends and Innovations

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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.

Page 15: Mobile Finance: 2017 Trends and Innovations

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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

Page 16: Mobile Finance: 2017 Trends and Innovations

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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

Page 17: Mobile Finance: 2017 Trends and Innovations

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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

Page 18: Mobile Finance: 2017 Trends and Innovations

About Us• Corporate Insight

• Mobile Monitor

Page 19: Mobile Finance: 2017 Trends and Innovations

• 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

Page 20: Mobile Finance: 2017 Trends and Innovations

• 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

Page 21: Mobile Finance: 2017 Trends and Innovations

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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,

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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

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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