| By Jim Bruene on April 29, 2010 7:06 PM | Comments (5) |
As I've pointed out, the key to boosting mobile banking adoption is to make the user experience better than the desktop computer/browser version. But many banks shoot themselves in the foot immediately by requiring existing online banking users to first log in to online banking to enroll in mobile banking (see note 1).
I've never quite understood the logic. Why can't online banking customers use their existing credentials to log in via the mobile app? What's the new risk? If anything, you are more likely to get your credentials stolen via desktop login than mobile login (at least for now).
So far, the mobile banking apps I've used have required initial activation via online banking (see note 2). I'm sure their security folk can sleep better knowing that I've proven ownership of the phone before logging in from it. But you don't have to prove you own the PC before using it, so what's the difference?
But finally, one of my financial providers, American Express, launched an iPhone app (note 3; iTunes link) that I can use right away by logging in with my online banking credentials (see screenshot below). I expect this will soon become the industry standard.
American Express iPhone app screenshots (version 1.1)
American Express mobile landing page (link, 29 April 2010)
Notes:
1. Even more important is enabling online enrollment of customers NOT using online banking; but that's a trickier, albeit potentially lucrative, project.
2. I am using mobile iPhone banking at Wells Fargo, Bank of America, and US Bank. While BofA, Wells and Chase (Update April 30, Chase has online enrollment for text messaging only; you can sign on to its iPhone app with your online banking credentials) all have a relatively painless 60-second signup process, US Bank's is truly cumbersome. It's a ten-screen experience that not only takes several minutes, but also requires the creation of not one, but two new PINs. A 4-digit one for transferring funds via mobile and a six-digit one for use in subsequent mobile app logins. While I'm all for simplified logins, six-digit PINs are not standard and many users will have a tough time remembering it. Many users may resort to using their mobile number, which kind of defeats the purpose. Use four digits and block access after four attempts.
3. The American Express app was released March 31 and a new update was released today.
4. For more on mobile banking see our recent Online Banking Reports.
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Hey Jim, thanks for this. Question for you:
Why do you think online enrollment of customers NOT using online banking is potentially lucrative?
My logic has always been that adopters of mobile would be your existing online bankers. Do you think some who have resisted online banking will go straight to mobile?
@William
Agree, the vast majority of users will come out of online banking (at least in North America).
But there will still be some who don't have convenient web access, who'll want to mobile banking. It's hard to say how big this segment will be, since it's really not an option available from banks here. I've heard the 5% number from similar market such as New Zealand.
the app is nicely done and resembles your account on the web a lot. Only wish it would ask for a Pin # instead of your password every time for log in.
@j$
Agree...I think 4-digit pin will become standard for a read-only session from an authenticated mobile phone. Really improves user experience.
Most FI's have used online banking cred's because it was the easiest way to go. Given that most FI's have between 30%- 50% customers enrolled in OLB, NOT having that as a requirement makes sense for mobile bankers. Add the fact that newer smart phones might be someone's primary computing device and it's a requirement.
NOT using OLB cred's also makes sense that on some phones it is really hard to enter in more complicated passwords ( mixed case and characters). To date many mobile offeringss didn't support high risk transactions, so a 4 digit pin would be fine. I think you will see a trend to simply log on's but multi factor authentication for higher risk transactions.
dave