Article

The evolution of money: 5 mobile banking apps you should get to know

Mobile banking apps will (or should) eventually evolve into mobile wallets. These five are poised to do so successfully.

June 10, 2014

Today, about 87 percent of Americans carry a smartphone. And in the past 12 months, 51 percent of them have used a mobile banking app on their mobile device.

Eventually that mobile app will morph into a mobile wallet. Or it definitely should, because that mobile wallet will become the user's banking and payments provider of choice in time. 

And it won’t necessarily be a bank. As new digital players elbow their way into the payments market, the nature of payments, interchange, acquiring, processing and settlement as we know them are changing. And the brand whose name is on the most customers' mobile wallets will be the winner — of mind share, data access, fee opportunities and loyalty.

With that in mind, it’s worth getting acquainted with the players who are providing the best mobile apps today — the ones who are well positioned now to emerge as power players when the smoke settles from the mobile wallet wars.

Here’s a look at the best mobile banking apps as judged by commentarian Ian Fergusson from the London-based social media marketing firm Tug:

Qualities of a good app

I measured a good app using three criteria (security being a given):

1. Ease of use. Fast and bug-free apps with an attractive user interface make for the best experience. Instead of dreading and avoiding having to use the app, an intuitive and clean design will make the customer prefer using it.
2.  Robust anduseful features. Being able to make a deposit using your phone is definitely a must-have feature. To ensure the sucess of any newly added feature, the FI should be prepared first to inform and then to confer with customers about the new service.
3. Availability on multiple platforms. Don’t force me onto a particular platform — an app should support Android, Apple, BlackBerry and Windows 8.

1) BBVA Compass

Platforms: Android, BlackBerry, iPad, iPhone, Kindle Fire, Windows

BBVA Compass is leading the pack when it comes to available platforms, notably the Amazon Kindle Fire. The app is very user-friendly and it allows the customer to flip through images of checks and make credit card payments through the app.

Favorite feature: I didn’t have to enroll for online banking before using the app. Fewer steps and processes meant I was much more likely to start using it immediately after signing up with the bank.

2) Barclays Pingit

Platforms: Android, BlackBerry, iPhone

This is an easy and efficient banking app, and you don’t even have to bank with Barclays to use it. Check balances, keep an eye on transactions, find nearby cash points, and transfer funds, all from multiple platforms (even non-smartphones!) You can call your bank directly from the app and be recognized immediately by the call center.

Favorite feature: Texting money. Users can send and receive money among themselves using mobile phone numbers so they don’t have to share bank details over the phone.

3) Mercantile Bank of Michigan

Platforms: Android, iPad, iPhone

The MercMobile app doesn’t have as many platforms available, but it is definitely an innovative app. There is an “add-to-wallet” feature that allows Visa payments via mobile. It’s also looking to integrate mobile video technology from uGenius, a company owned by NCR Corp.

Favorite feature: MercMobile has partnered with PayPal to provide mobile payments. It definitely helps me when it comes to online shopping!

4) Simple

Platforms: Android, iPad, iPhone

Simple has a, well, simple design that makes it easy to use. Beyond the design, the app keeps banking jargon to minimum, helping me to understand what’s going on. Simple’s app is not associated with a bank, but is rather a startup with a bright future.

 Favorite feature: If you think you have lost your debit card, the app lets you block and unblock the card, which is relatively unusual. Personally, I liked the Safe-to-Spendfeature, which tells me if I can afford a potential purchase. (The answer was usually no …)

5) Santander

Platforms: Android, iPad, iPhone

This is a comparatively new app, but it appears to be quite popular amongst customers. The app is great for all-around banking as you can do the same things as the online site, including viewing transactions from up to two years prior.

Favorite feature: I was able to set up alerts for different things, such as when my rent payment was coming out of my account as well as when my bank balance fell below a certain amount.

The future of banking apps

According to Ahmed Khidhir, senior business consultant at Misys, “Social media should also be made a part of your mobile and tablet banking solution.Mobile applications should provide customers with the facility to share messages and reviews on social media, especially at the end of successful sales processes and customer interactions.”

I didn’t find any apps directly connected to social media, but apps should become a gamified system. Customers would be rewarded for using the mobile app system, which in turn would help to reduce demand on human resources and adding a new channel that customers of financial institutions are rapicly coming to expect.

graphic: visual punch