Originally written for and published by BAI/Banking Strategies, December 22, 2010
Within the last year, tablet computers, led by the Apple iPad, have made a tremendous splash in the market. While only a handful of financial institutions are currently offering banking applications for tablets, the growing use of these devices merits careful monitoring.
Today, there are two major trends driving tablet banking solutions: ubiquitous connectivity and a larger screen enabling touch capabilities. The significant amount of real estate on a tablet screen can support robust banking functionalities and provide a unique engagement point offering a much easier and richer way for consumers to interact with their bank. They can literally “touch” and move their money in a way that can’t be duplicated by clicking a mouse on a traditional Website.
Undoubtedly, the advances in connectivity, mobility and user interface embodied by the iPad and other tablets are creating new possibilities for how financial solutions are delivered, adopted and accessed – making them part of a larger trend that is re-making financial services. The plethora of iPhone applications for mobile banking has already proven that the iPad has sustainability as a tool for accessing accounts.
Consumers are likely to continue using mobile devices to manage their finances during their daily routine while utilizing a larger, “lean back” device like the iPad to access their money in more relaxed situations, such as when they are traveling. Applications customized for tablet devices give financial institutions the unique opportunity to provide a combination of mobile access with a richer money management experience.
This change in serving customers who have traditionally browsed online or used mobile phones to access account information has profound implications for banking. The iPad represents an important opportunity for financial institutions to increase engagement points with their customers. It also provides an opportunity for smaller banks to show innovation and more effectively compete with larger banks.
However, before investing in developing or launching an iPad application, banks must first determine what their customers’ wants and needs are and understand what specific problem they are attempting to solve. Being in the marketplace with a tablet application is not nearly as critical as providing customers with a superior user interface and a strong value proposition for how the solution will benefit them. Designing an application that is not based on user needs is simply a waste of money. While the iPad does provide banks with the opportunity to offer a unique experience, providing top-notch functionality is the key to driving strong adoption and usage.
Financial institutions should focus on what they are trying to achieve with the technology – the specific problem they are trying to solve for the user. For example, are they trying to provide users with easier access to their money, more control over their finances or better customer service? Once the end goal is identified, the specific “problem area” can be addressed through technology enhancements driven by data from focus groups, user experience testing, ethnographic and market surveys. Utilizing internal or third-party resources to perform this due diligence and then make informed recommendations regarding software and application development will facilitate the delivery of an intuitive, superior user experience.
It is such investments that will differentiate a specific bank’s user experience and leave others trailing behind – and this applies to every channel and touchpoint a financial institution has with its customers.