Banks in the U.S. are consistently pushing the envelope in terms of mobile innovation to catch up with customer demands for increasing novel features in their digital banking channels, according to S&P Global Market Intelligence’s 2018 U.S. Mobile Banking Market Report.
Wells Fargo and Bank of America boast the most comprehensive mobile app, each offering 23 of the features surveyed. BBVA Compass followed in third place with 22; while Capital One, Citi and PNC tied for fourth with 21; and BB&T and Chase with 20. Several smaller banks in the analysis also have at least two-thirds of the features surveyed, including First Tennessee Bank, North Carolina’s First Citizens Bank and Missouri’s Central Bank with 18; and Colorado’s FirstBank with 17.
According to results from an S&P Global Market Intelligence mobile banking survey, customers have come to expect a feature-rich mobile experience with comprehensive self-service functionality, with features such as card controls and fingerprint login topping the most in-demand features mobile banking users would like to see added to their apps.
In addition to app features, banks are also focused on providing technology-driven customer engagement to improve overall user interface and app performance.
"Innovative digital tools can give banks an edge as they compete for consumer deposits in a rising interest rate environment," said Katie Darden, associate director of financial institutions research at S&P Global Market Intelligence. "But banks are not just vying with each other for consumer wallet share, as both big tech companies and startups increasingly engage in financial services. The most successful financial institutions will combine the unique advantages of the banking industry with cutting-edge technological developments."
One example of technological innovation is the use of artificial intelligence in banking. S&P Global Market Intelligence identified 35 U.S. depository institutions that had Alexa skills available through Amazon.com as of Nov. 9. While most of these only provide publicly available information, some allow users to transfer funds and make payments. Bank of America, on the other hand, has developed its own in-app chatbot, dubbed Erica, which had more than 3 million users in the first six months.
The report includes mobile banking survey data and mobile app details for 27 national and large regional banks, as well as for 45 smaller regional and community banks from across the country. To understand how apps have evolved, S&P Global Market Intelligence looked for 24 features in each app, ranging from balance information to mobile payments to facial recognition.