Original text here from Patrice Bernard (LinkedIn)
Once a niche gadget, the mobile banking app has evolved into the preferred channel for customer interaction and a critical component of financial institutions' strategies. As such, it represents significant opportunities for competitive differentiation. Consulting firm Forrester offers some insights into the future of this pivotal tool.
Over the years, the range of services available on smartphones has expanded to align with evolving customer behaviors and expectations. Given its central role in banking relationships, it's essential for institutions to identify must-have features to remain competitive while exploring innovative additions to gain an edge in a relatively homogeneous market.
In the essential category, the message is clear—backed by a U.S. survey that likely reflects global trends with minimal lag. Most users now expect to handle all their financial tasks via their phones, even if they occasionally use other channels, such as speaking with an advisor.
Core functionalities cited by analysts include account aggregation, personal finance management, virtual cards, and subscription management. At minimum, banks should offer features like tracking recurring payments, enabling one-click cancellations, and blocking charges. The bar is set far higher than the basics of balance checking, transactions, and product acquisition.
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Once these foundational needs are met, how can banks stand out? Forrester suggests focusing on niche offerings—features targeting specific subsets of customers. Examples include carbon footprint calculators for spending (ideally paired with actionable recommendations), international transfers, or charitable contributions.
Each institution should begin by identifying the audiences it wants to prioritize and then delve into their unique needs. Since no one-size-fits-all solution exists, the process involves experimentation and agility. This approach requires a formal framework for innovation, with cross-functional teams blending expertise in business, product, and technology.
In closing, I would add two observations about Forrester's recommendations.
