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Introduction
2015 Mobile Trends & Innovations
2016 and Beyond
About Us
Table of Contents
• Wearable Technology
• 3D Force Touch
• Widgets & Previews
• Transactions
• Mobile Account Openings
• Security
• Mobile Innovators
• Wearables
• Virtual & Augmented
Reality
• Bitcoin Wallet Security
• Key Takeaways• Corporate Insight
• Mobile Monitor
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Introduction
2015 saw financial institutions continue their shift toward a mobile-centric approach, as this channel
quickly becomes the primary means of interaction between consumers and firms. According to a March
2015 report from the Federal Reserve, 35% of mobile phone users with a bank account used mobile
banking in 2014, up 150% from 2010. Additionally, 52% of all smartphone owners have used mobile
banking in the last 12 months.1 Building a strong mobile offering can help reinforce a positive relationship
with clients, especially younger, more tech-focused Millennials. As a result, mobile finance apps continue to
evolve to provide consumers with the information they want, when they want it.
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Consumer and Mobile Financial Services 2015. Federal Reserve Board. March 2015.
Financial services firms continued to improve and refine their smartphone capabilities,
and have begun to capitalize on new and trendy devices such as wearables. Traditional,
established players are also taking inspiration from fintech firms and bitcoin wallet
providers to provide a better experience to their clients.
In December 2014, we published our year-end review of noteworthy mobile finance trends
that had occurred that year. Now, at the start of 2016, we take at look at how those trends
have advanced and highlight some new developments that have emerged. We
supplement this report with our recent research on mobile account opening, Apple Watch
apps, money movement and fintech mobile innovators.
Keeping up with Mobile Finance
2015 Mobile Trends & Innovations
• Wearable Technology
• 3D Force Touch
• Widgets & Previews
• Transactions
• Mobile Account Openings
• Security
• Mobile Innovators
• The Apple Watch was released on April 24,
2015 and had an immediate impact on the
financial services industry
• While other wearable devices had been on the
market for several years (e.g., Pebble), few
financial services firms had invested any effort
in developing apps on these platforms
• In less than a year since its release, many
financial services firms have already updated
their iPhone apps to support the Apple Watch,
including Bank of America, Capital One, Charles
Schwab, Citi, Discover, E*TRADE, Fidelity, TD
Ameritrade, USAA and Wells Fargo
The release of the Apple Watch reenergized the wearables market
58%
17%
9%
8%
2015 Smart Wristwear Market Share
Apple Watch Android Wear Pebble RTOS
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Wearable Technology
Source: IDC
• While the Apple Watch may one day offer robust functionality,
financial services firms are limited in what they currently
provide clients
Banks and credit card providers tend to only offer account
balance details
Most brokerage firms only provide basic information about
markets and watch lists
• Charles Schwab and TD Ameritrade stand out for allowing
clients to initiate trades via the Apple Watch, though the
transactions must be completed on the synched iPhone
• Fidelity offers detailed market information and charts that
effectively utilize the Apple Watch’s limited screen space
Apple Watch capabilities from traditional firms remain limited in scope
Charles Schwab Initiate Trade
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Fidelity Markets Fidelity Details
Wearable Technology
• Robinhood allows clients to complete a trade directly through its Apple Watch app
Fintech investing, budgeting and P2P firms provide more robust transaction capabilities
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Robinhood Trade Process
Square Cash Payment
• Additional transaction capabilities at other firms include deposits and contributions toward goals (Acorns
and Betterment) and P2P payments (Square Cash)
Acorn Deposits Betterment Deposits
Wearable Technology
• 3D Touch provides different interactions depending on how
hard the user presses on the screen, including what Apple
calls “Peek and Pop” and “Quick Actions”
• Users can tap firmer than usual on a screen component to get
a peek at what it consists of, and then tap more firmly to
“pop” the window into full view
On the USAA credit card Transactions screen, clients can use 3D
Touch on a transaction to view additional details without
navigating to a separate details screen
• Quick Actions menu options appear when users press firmly
on app icons from the phone’s Home screen
USAA and Vanguard clients can use 3D Touch on an app icon to
gain quick access the most commonly used sections of the apps
Vanguard Quick Actions
USAA Quick Actions
USAA Peek and Pop
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3D Force Touch
Apple introduced 3D Touch capabilities to its iPhone 6s, providing users with a new way to interact with apps
Widgets
Firms including Discover, E*TRADE, Fidelity, Fifth Third and
Merrill Lynch/Edge all offer iOS and Android widgets
Widgets and previews offer quick access to account information without logging in
10Discover Card Widget -iPhone
E*TRADE & Charles Schwab Widgets - Android
• Access to account balances is a vital aspect of any firm’s mobile app
• With that in mind, firms have developed two ways to provide clients with quick access to their balances:
In-App Account Previews
Firms including Discover, Fidelity, Fifth Third, PNC and Wells
Fargo offer account previews without having to log in
Citibank Mobile Snapshot - Android
Widgets & Previews
• Ally Bank and U.S. Bank introduced rush delivery
on bill payments
• Retirement firms introduced new IRA contribution
capabilities
USAA now allows customers to make contributions to
their IRA
Voya Financial’s MyOrangeMoney retirement projection
tool allows participants to update their contribution rate
• TD Ameritrade clients can create new custom
option strategies from the firm’s thinkorswim app
by choosing up to four option legs
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thinkorswim Custom OptionU.S. Bank Express Bill Pay
Transactions
Several firms improved or enhanced their existing transaction capabilities
• Bank of America, Fidelity, KeyBank, USAA, and
Vanguard allow clients to open a new account directly
from their mobile apps
Expedited applications with pre-filled information for
existing clients help to streamline the process
• USAA and Wells Fargo (mobile site) offer an innovative
feature that auto-populates key fields in the
application with information drawn from a photo of
one’s drivers license
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Bank of America Expedited Application
USAA Photo Capabilities
• Of the 27 firms tracked by Mobile Monitor, 19% now offer the ability to start a new relationship via their
mobile app, while 52% provide access to a mobile-optimized account application when visiting the firm’s
site from a mobile device
Mobile Account Opening
Leading firms have finally begun to offer a mobile account opening experience
• Discover, USAA and Capital One Wallet’s apps
include the ability to temporarily lock or freeze
a credit card if it is misplaced or stolen
• Biometric security is increasingly prevalent
with Touch ID as the most common
implementation
44% of the firms covered in Mobile Monitor now
provide Touch ID login
• Bank of America and Chase provide an
alternative second-factor authentication option
to log in with the use of a token
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Discover Freeze Account
Chase – Use Token
Security
Mobile security continues to be a focus for enhancements
• Innovators such as Square Cash and Venmo borrow mobile-first social design characteristics to simplify the registration and use of the app
Venmo customers can link a Facebook account and send money to people on their friends list
Square Cash’s payment activity mimics that of a messaging interface, drawing inspiration from outside of financial services
• Acorns, Coinbase and Robinhood use account integration to quickly link multiple external accounts
Customers can simply choose their bank from a set of logos and enter their online banking username and password to establish a connection
14Venmo Enrollment Coinbase Account IntegrationSquare Cash Payment Activity
Mobile Innovators
Fintech startups are offering a more streamlined registration/aggregation experience
Mobile Finance: 2016 and Beyond
• Wearable Technology
• Virtual & Augmented Reality
• Bitcoin Wallet Security
• Key Takeaways
• We expect to see more financial services firms introduce new transaction capabilities to their wearable
apps as developers learn the strengths and weaknesses of the platform
Banks will support transfers, P2P payments and bill pay with a tap from the app
Brokerages will allow clients to initiate and even complete trades on the Apple Watch
CIBC - Transfers
16Robinhood - Trade
Wearable Technology
Wearable devices will begin to provide a wider range of transaction capabilities
• With the release of Oculus Rift and Samsung Gear VR last year, firms are beginning to experiment with
virtual reality capabilities to create visual and fun experiences for clients
Fidelity created the StockCity app for Oculus in 2014. It visualizes portfolio data as a city where different building
heights correlate to stocks at different prices.
• On a more practical level, USAA offers a “Specs” feature for homebuyers that uses augmented reality to
view property information
• Magic Leap, the augmented reality startup, secured $793.5 million in funding from several prominent
investors including Fidelity and J.P. Morgan. The technology could allow firms to superimpose 3D imagery
over real world experiences.
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USAA’s Specs FeatureFidelity StockCity Oculus App
Virtual & Augmented Reality
Magic Leap Demo Video
Firms will explore new uses for augmented & virtual reality apps
• While many financial institutions use two-factor authentication at
login, this technology can be leveraged on a per-transaction basis as
an optional layer of additional security
GreenAddress requires two-factor authentication on a per-transaction
basis; Amory requires users to enter their passphrase in order to
conduct an outgoing transaction
• Firms may adopt mnemonic passphrases to replace credentials or
as a password recovery tool
Bitcoin wallets typically use a set of between 6-15 random words (e.g.,
“angry owls cereal carwash bubble curtain”)
Breadwallet goes as far as requiring customers to create a new phrase if
they attempt to take a screenshot of the phrase with their mobile device
• Blockchain offers a password strength tool in the app to ensure
users are creating strong credentials
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Breadwallet Passphrase & Warning
GreenAddress Two-Factor Security & Blockchain Password Strength Tool
Bitcoin Wallet Security
Firms may begin to adopt the tighter security standards used by Bitcoin wallets
• Financial services firms need to recognize that a growing number of clients want a “mobile-only,” or at least
“mobile-first,” relationship with them. Today, this kind of relationship is nearly impossible, at least with the major banks,
brokerages and card issuers, since so many account capabilities and features are only accessible from these firms' websites.
When mobile apps were first introduced, they were viewed as complementary access points to the website for users on the
go. Now a growing consumer segment would prefer to use the mobile channel as the main way of interacting with their
financial services providers. Firms should provide such a "mobile-only" or "mobile-first“ experience, or they may lose clients to
more cutting-edge startups and fintech firms that do provide a truly mobile-focused experience.
• As mobile devices evolve, the possibility to provide a broader range of enhanced capabilities grows. Many of the
most common functions available on today’s mobile platforms were not feasible or compatible with the software or hardware
found on the first generation of mobile devices. As new and improved smartphones are introduced to the market, financial
services firms have the opportunity to provide innovative products, services and experiences.
• Customer experience is being benchmarked across verticals. While innovators such as Betterment, Wealthfront and
Venmo have disrupted the competitive landscape within financial services, customer expectations are being shaped by other
cutting-edge websites they use in their daily lives. The superb experience provided by companies like Apple, Amazon,
Facebook and Google has set a new bar that financial services firms must clear if they hope to delight their customers. With
that in mind, it’s critical that financial institutions look beyond their own industry to benchmark the experience they provide
against the offerings of these best-in-class organizations.
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Key Takeaways for Financial Services Firms
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., Millennials, fintech startups, etc.)
User research (e.g., user testing, heuristic reviews, etc.)
Website and Mobile Audits
• For more information about Corporate Insight, please contact Grace Lei at (646) 929-5148 or
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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 Account Opening
Apple Watch Apps
Money Movement
Quarterly capabilities matrix and films
Analyst support
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Mobile Monitor’s Cross-Industry Coverage Set
About Mobile Monitor
