A little more than a year after the iPad launched, Bank of America finally made it their own with a native app. It appeared in the iTunes store around midnight last night and has already climbed to #42 on the list of most popular free apps across all categories (5 PM Pacific; see update below and notes 1, 2).

I took it for a spin a few minutes ago and it's about what you'd expect for the first version. The most important functions are all there: view recent transactions, transfer funds, pay bills, find ATM/branch locations, and contact customer service. It also includes the ability to apply for a new account within the app, something that is still relatively rare (and not included in the bank's iPhone app).

Analysis: Overall, it's a solid, if somewhat tardy, initial effort and will be adequate for most users. However, BofA has a reputation for being an online leader, and there is nothing in the app so far that supports that brand positioning. But, then again, simply having an iPad app puts it ahead of most competitors (see list of top banking apps as of last week).

A few other notable features:

• Users have the option to store their username, so subsequent logins can be accomplished by simply entering a password (screenshot 1)
• Pressing anywhere on a line item in the statement brings up a small popup with additional transaction detail (screenshot 2)
• While it won't win any design awards, the app gets a passing grade with an overall look and feel that is consistent with other iPad apps with relatively intuitive navigation. At least it's not simply an expanded version of its iPhone app (like the Chase iPad app)

It also disappoints in a few areas:

• I tried to pay my credit card bill, but the iPad app doesn't support payment via external checking account (regular online banking does)
• It times out after 10 minutes (good), but leaves your account balances visible until you dismiss the popup (screenshot 4)
• I was not able to access business credit card statement data (system unavailable) but was able to get personal card data
• The squares didn't quite fit the screen right in portrait mode (screenshot 4)
  
  

1. Initial iPad app sign in (3 May 2011)

2. Transaction details popup

3. New account app

4. Time-out warning still shows account balances

Notes:
1. The app still shows up as #32 in the finance category. So clearly, the top list among all apps is refreshed more often than the individual category lists.  
2. There is no mention of the app on the bank's website as of 5 PM.
3. For more info on mobile banking, see our previous Online Banking Reports.

As hard as it is to believe, last year at this time only 30 financial institutions had apps in the U.S. iTunes App Store (note 1). And that was a full 18 months after Apple's phone had opened its OS to third-party programs. A few in the industry still questioned whether smaller banks and credit unions would ever need a native iPhone app.

I think that question has been answered: In the past 12 months, the total financial institution app-count has rocketed upwards to more than 1,200, a 40-fold increase. That's 100 new apps per month for the past 12 months.

In raw numbers, the past seven days have been relatively unremarkable with just 17 new FI apps. But it's been one of the biggest weeks in terms of major launches:

• BofA Merrill Lynch research library for iPad only (note 4; iTunes)
• Capital One, whose app was released on Sunday, went to #5 Monday and is up to #4 when I checked a few minutes ago (see inset; note 2; iTunes)
• NetSpend (iTunes)
• Schwab, both v1 of its iPhone app (iTunes) and an iPad version of its On Investing magazine (iTunes)
• SmartyPig (pending Apple approval)
• Stanford Federal Credit Union, which used a striking background for its app home page (see below; iTunes)

And while it's not nearly as crucial as the iPhone, we are waiting for a slew of iPad apps. Apparently, BBVA Compass demo'ed a cool unreleased iPad app at a mobile conference (note 4). And just today, Schwab released its monthly magazine in iPad format, an industry first.

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Notes:
1. See Online Banking Report #176, Table 18 (link subscription required)
2. Rank is of free apps in the Finance category in the U.S. store. The apps above it are #1 Bank of America, #2 Chase, #3 PayPal
3. HT David Eads in Mobile Manifesto
4. At the same conference as note 3, Bank of America revealed it hit the 6-million mark in active mobile banking users.

I've long been an admirer of Cascade Bank, a $1.7 billion bank headquartered in Everett, WA. A friend was marketing director there for a number of years, and I learned a lot from her about community bank marketing and management.

While I used to have a mortgage at Cascade, I don't have any accounts now; hence, the email I received earlier this week. The bank invited prospective customers to come to one of its 22 branches (today only) and enter their name in a drawing to win an iPad. Five iPads were being given away bank wide.

And while in the branch, hoping to pick up a free ipad, the bank dangled an attractive duffel bag in front of visitors as a premium for opening a new checking account. And Cascade promised to drop an extra $25 in your account if you traded in your old check register from the competition.

Bottom line: Thanks to the iPad and some great graphic design, the mailing had a stunning visual, good title, and compelling offer. Excellent work.

Email announcing the giveaway (received 30 Nov. 2010)

Cascade Bank homepage (3 Dec. 2010)

Landing page pitches free checking with duffel bag premium and $25 bonus 

Note: For more ideas, see Online Banking Report: Growing Deposits in a Digital Age.

The bank that everyone's talking about, and no one is using, finally released a few peeks at its user interface. Based on these screenshots posted on the bank's homepage (see last screenshot), it looks like a killer iPad app (note iPad logo in upper left of first screenshot).

The startup also unveiled a new logo, moving from the trendy gray/red (left) to a bolder font in a very bank-like and comforting blue.

Finally, the startup has purchased the .com version of their URL, an important, albeit expensive, pre-launch move. Currently, banksimple.com redirects to the old .net version.

Screenshots

1. Safe-to-spend balance appears to incorporate future scheduled payments and displays goals to help users keep the bigger picture in mind, rather than spending the $1,208 on drinks and dinner out.

2. The bank's customer service focus illustrated in chat screen with co-founder Alex Payne. On the right you can get a glimpse of the transaction flow.

3. My favorite screenshot. It indicates the bank will use out-of-band authentication, a must-have these days. It also demonstrates that BankSimple is really thinking through the UI. Instead of tiny little digits requiring reading glasses, the bank provides the 5-digit code in big, bold numbers. They are also rendered in an attractive flipboard style.

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Note: HT to Keith Caswell @kthcswll for the tip.

Last week, Spain's BancSabadell and "la Caixa" became the first banks in the world with iPad apps. But the U.S. was still shut out until today, when Chase became the first U.S. bank with a native iPad app (iTunes link). It doesn't yet show in the Finance category of my iPad. But if I search for Chase, it appears as a download option.

It successfully downloaded, and about 60 seconds later, I was looking at my Chase account. Unlike some banks, it was not necessary to activate the app in online banking. First-time users log in to the app with their online banking credentials. Then an 8-digit code is sent to a pre-existing phone number or email address. Users then enter this code into the iPad.

Chase's app is basically a stretched-out version of its iPhone app. But the extra real estate does make it easier to accomplish tasks, such as sending a bill payment (right screenshot). But the biggest initial benefit of the iPad app is all the blog posts and news articles it will generate. 

Chase is betting big on the iPad platform, taking a reported six-figure sponsorship of the NY Times iPad app (see inset, click to enlarge). The bank really had no choice but to support that advertising expense with a banking app of its own. Chase launched its iPhone app in Dec. 2008.

Chase Bank's native iPad app (5 May 2010)

Note: For more on mobile banking and payments, see the most recent issue from Online Banking Report.

Apple today said it has shipped one million iPads (one of which went to a lucky Mint user, see inset). I don't think that's a surprise to anyone who's even mildly interested in tech.

It's debatable whether the iPad is a laptop killer, but if nothing else, it's a really capable portable media and game player. Given its appearances on The Grammys, Modern Family, Lettermen, and so on, and with Apple's cachet, how could the iPad not sell a million?

But the iPhone arrived with even more hype, and it took more than two months to sell a million back in the summer of 2007. But it was much more expensive considering the price of the phone and $800+ per year to AT&T. And there was no App Store back then: it was just email, SMS, Safari, YouTube, stock tracking and of course, my personal favorite, the weather button.

So I'm not surprised the iPad has consumer appeal. But I am surprised that no major U.S. financial brand, other than E*Trade (see screenshots below) has a native iPad app yet in the U.S. store (notes 1, 2). I expected at least a half-dozen by now. But there have been very few new apps in the iPad store across all categories. Only nine new apps have launched since April 3 in the finance category, bringing the total to 39 (see note 3; original post here ).

So, it may not entirely be the fault of the FIs. There is probably a logjam of apps waiting for approval from Apple. We look forward to seeing what the FIs and PFMs bring to the iPad throughout 2010.

E*Trade Apps: iPhone vs. iPad
Note: Relative size is accurate; see CNET's comparison of iPhone vs. iPad versions across 20 popular apps (previous post on why you need an iPad app here)

Notes:
1. Square also had its app available at launch, although they have yet to launch credit card processing, so it's not really functional yet. Card processing is expected to launch later this week when the iPhone app becomes available.
2. (Updated May 4 with "la Caixa" info and search info) They don't show on my U.S. iPad, but Spain's "la Caixa" added an iPad app to the U.S. store a few days ago (link) and Banco Sabadell has one in the U.S. store (link). Also, I just learned (May 4) that if you search specifically for the Spanish banks on my U.S. iPad, they do show up and have been successfully downloaded.
3. There are many mysteries of the App Store. One new one is the discrepancy between what's shown on my iPad vs. what's in the iTunes store. On my iPad, 30 finance apps showed on April 3, and there are now 39, for a growth of 9. iTunes shows 61 available today, up 18 from the 43 available on April 3. None of the extra 22 in iTunes are from financial institutions.
4. For more on mobile banking and payments, see the most recent issue from Online Banking Report.

One week into the iPad era there are still no banks or credit unions with iPad-specific apps (note 1). There also aren't any major PFM or other financial brands present, other than Square and E*Trade. Mint's not even there yet.

What's going on? On Friday, The Financial Brand's Jeffry Pilcher tweeted the question that's on a lot of bankers' minds:

While I suspect Jeffry is mostly being provocative, it's a question worth discussing. Should financial institutions build an iPad app?

The Web experience on the iPad is outstanding. It has a lightening-fast Safari browser built in. It loads my bank's webpage as fast or faster than my MacbookPro or Thinkpad X41. The iPad virtual keyboard makes it easy to type username and password. And for the most part (Flash is a problem), websites look and perform perfectly on the iPad (use ipadpeek.com if you want to see what your webpage looks like in an iPad layout).

So yes, online banking works fine on iPads. But you can say the same thing about most evolutionary products. Telephone calls work fine on corded phones. Cars work fine without cup holders. Refrigerators work fine without ice makers. And so on.

An iPad app isn't about utility, it's about a great user experience. The ability to click on a banking button on the main iPad screen and launch a perfectly sized online banking app shaves 30 to 45 seconds off the traditional browser-based approach (open Safari, navigate to my bank, and find the login button). There are also things you can do with an app, such as location-aware ATM/branch finder, that make it a better experience (note 2). 

So here's why most major financial brands should have an iPad app now:

• Free publicity (part 1): As of today, there are only 39 iPad apps in the Finance category. Each of the 562,000+ iPad owners, and millions of others browsing the iTunes App Store, would see your brand showcased there.
• Free publicity (part 2): There was, and is, a tremendous amount of hype around the iPad. Being the first bank/CU in your country/state/region/city/neighborhood with an iPad app will net you numerous mentions online and in print.
• It's cool: While financial institutions are rightly focused on the basics right now, there is still considerable value in being seen as a technology leader.
• It's inexpensive: Building a basic iPad/iPhone app is a relatively simple project. If it did nothing more than connect to online banking and show nearby ATMs/branches, you'd receive most of the benefits listed above.
• It's the future: Apps and widgets will play a large role in banking info delivery going forward, especially in mobile banking. You should be designing apps for every significant platform. In the U.S. that means the iPhone and Android, then iPad and Blackberry after that (see note 3).

And one final note for the 67 U.S. financial institutions that already have iPhone apps. Yes, you still need an iPad one. While the iPhone app runs fine, it is displayed in a small window the size of an iPhone. Users can press a button in the lower-right corner to doublesize the app, but images and text become fuzzy, and it just doesn't look right (although it is functional as you can see in the screenshots below).

Bank of America's iPhone app displayed on iPad screen (5 April 2010)
Note: Click on the images below to see the quality difference

              Normal size                                                             Double sized

Notes:
1. As of 11 PM Pacific April 10, the only major financial brand with an iPad app is E*Trade MobilePro, which is more about stock trading, not banking.
2. For more on financial apps and the iPhone, see our March 2009 Online Banking Report.
3. For more on the importance of mobile banking and payments, see the most recent issue from Online Banking Report.
4. Hat-tip to Banking Kismet for blogging on the subject.

After months of hearing about the iPad, I finally got my hands on one Saturday afternoon. It's a great piece of technology, but if you have an iPhone, you pretty much already know what it's like.

While the iPad runs all 150,000 apps available for the iPhone, developers are encouraged to produce iPad-optimized versions to take advantage of the significantly bigger-screen real estate.

When you open the App Store on the iPad, it focuses almost entirely on iPad apps. You have to do a specific keyword search to find non-iPad apps that work on the iPhone.

And I was surprised that neither banks nor credit unions are represented among the 30 Finance category apps available on April 3 (see screenshots below), a situation likely to be rectified with a flood of banking and credit union iPad apps during the next few months. It's definitely a place you want your brand represented (note 1).

The only big financial services brand that made it to bat on opening day was E*Trade MobilePro (which hit the store last Thursday), and another trading app, iStockManager, to be used with TD Ameritrade.  Bloomberg, too, had its popular info app available on day 1 (see screenshots below for all 30 finance apps).                                       

The biggest surprise in the iPad Finance category was Square, the much-touted card-to-card payments service from Twitter's founder, which released its iPad app on April 1 (see inset). We'll be testing Square this month and hopefully using it to take last-minute credit card payments at our upcoming FinovateSpring Conference.                                                                                  Square's iPad app

The 30 iPad finance category apps available on the launch day (3 April 2010)
(Note: Organized by "featured")
Page 1: Apps 1-12                                                     Page 2: Apps 13-24  

Page 3: Apps 25-30

Note: For more coverage of mobile banking and payments, see the most recent issue from Online Banking Report.

Apple loaded iPad apps into the main iTunes store today (see screenshot below). Search is limited and apps by category are not yet available, but you now can browse the iTunes store for iPad-optimized apps.

I looked at all 2,400 and spotted three financial titles -- a credit card merchant terminal, a stock-info tracker (see below), and E*Trade's Mobile Pro -- plus a few calculators

I was disappointed that no banks or credit unions were represented. But the iPad launch is still 36 hours away, so I may still win my bet that Bank of America will be there on the morning of April 3.  

Apple iTunes App Store now features iPad apps (1 April, 5 PM Pacific)

E*Trade Mobile Pro for iPad (iTunes link)

Credit Card Terminal for iPad from Inner Fence
(for Authorize.net users; iTunes link)

MarketScan by Michael Foster (iTunes link)

Note: For more coverage of mobile banking and payments, see the most recent issue from Online Banking Report.