garanti bankası forrester 2014

Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA

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2014 Global Mobile Banking Functionality Benchmarkby Peter Wannemacher and Stephen Walker, July 17, 2014

For: eBusiness & Channel Strategy Professionals

Key TaKeaways

Forrester evaluated The Mobile Banking services Of 32 Large BanksForrester evaluated the mobile banking offerings of 32 large retail banks from Australia, Canada, France, Germany, Italy, the Netherlands, Poland, Spain, Turkey, the UK, and the US. Our evaluation criteria cover a range of topics including account information, transaction functionality, and support for different mobile platforms.

Garanti Offers The widest Range Of Next-Generation FeaturesTurkey’s Garanti received the highest overall score in our review. Garanti offers a wide range of transfers, bill payments, P2P payments, and point-of-sale payments as well as a variety of next-generation features, including voice navigation, contextual marketing, a mobile digital wallet, and product research.

every Bank Does some Things well, But There’s Plenty Of Room For ImprovementWe found best-in-class examples from all of the firms we assessed. We also found important opportunities for improvement at every bank. For example, many banks could do more to cross-sell additional products and services to customers on mobile devices.

Digital Banking Teams should Make More Use Of ContextHaving delivered the basics, digital teams at banks should now work to improve mobile self-service features, offer money management tools, cross-sell additional products and services through mobile devices, and use the context of each customer’s situation to increase the value of features and content.

www.forrester.com

© 2014, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email [email protected]. For additional information, go to www.forrester.com.

For eBusiness & Channel strategy ProFessionals

why ReaD ThIs RePORT

We used our Mobile Banking Functionality Benchmark methodology to evaluate the mobile banking offerings of 32 large retail banks in Western Europe, North America, and Australia. In general, the firms we reviewed have laid strong foundations, with a variety of account information and transactional features available for a range of devices. To build on these strong foundations, digital banking teams should help customers with money management, engage them with contextually relevant information, and start generating sales leads with product offers and information. This report, which forms part of our mobile banking strategy playbook, is intended to help eBusiness and channel strategy professionals benchmark their own mobile banking capabilities, identify good practices, and plan improvements to their mobile banking services.

table of Contents

Forrester’s Mobile Banking Functionality Benchmark Methodology

The Benchmark: Garanti Leads, But Many Banks Do well

Global Best Practices In Mobile Banking

reCommendations

Differentiate By Focusing On Convenience and Context

how Forrester Can helP

Benchmark your Mobile Banking To Identify strengths and weaknesses

supplemental Material

notes & resources

Forrester used its mobile Banking Functionality Benchmark methodology to review the mobile banking services offered by 32 large banks from north america, western europe, and australia.

related research documents

2014 european mobile Banking Functionality BenchmarkJune 23, 2014

2014 us mobile Banking Functionality Benchmarkmay 27, 2014

2014 Canadian mobile Banking Functionality Benchmarkmay 27, 2014

the mobile Banking imperativenovember 12, 2012

2014 Global Mobile Banking Functionality BenchmarkBenchmarks: the mobile Banking strategy Playbookby Peter wannemacher and stephen walkerwith Benjamin ensor, aurélie l’hostis, rachel roizen, and audrey Blumstein

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2014 global Mobile Banking Functionality Benchmark 2

© 2014, Forrester Research, Inc. Reproduction Prohibited July 17, 2014

FORResTeR’s MOBILe BaNKING FUNCTIONaLITy BeNChMaRK MeThODOLOGy

To help eBusiness and channel strategy professionals at banks benchmark their mobile efforts, identify critical mobile features, and plan for the future, we used our Mobile Banking Functionality Benchmark methodology to evaluate the mobile banking services of 32 large retail banks from 11 different countries (see Figure 1).1 We have published separate reports that detail our findings for the leading Canadian, Continental European, UK, and US banks.2 Our methodology has three steps:

1. Define a customer scenario. We used Forrester’s Consumer Technographics® survey data to develop customer descriptions and a set of use cases that represent some of the ways customers use mobile banking (see Figure 2). To test banks’ mobile features, we identified four common banking goals that we attempted to execute on each bank’s main iPhone app.3 The goals reflect the range of activities that customers have come to expect from mobile banking, including consolidated balance viewing, money movement, bill payment, and mobile alerts.

2. Score the banks’ mobile banking services across a variety of categories and criteria. We used 37 individual criteria in our Mobile Banking Functionality Benchmark methodology. Each criterion has a potential score ranging from -2 to +2. These scores measure how well each feature meets customers’ needs and helps customers easily and conveniently achieve their goals. The criteria are divided into seven categories: range of touchpoints, enrollment and login, account information, transactional functionality, service features, cross-channel guidance, and marketing and sales.

3. Rank the firms. We weighted each criterion and category to ensure that — in general — the most important mobile features have the most impact on a firm’s overall score.4 We amended the weightings this year to give a slightly higher weight to two categories: enrollment and login, and marketing and sales.5 As some features are more important in some countries than others, our weighting is, inevitably, a compromise. The combination of weightings and scores for the criteria generates a score for each category and for the bank’s mobile offering as a whole. The final scores are based on a 100-point scale — a score of 50 or higher meets our standards.




Figure 1 Banks Reviewed In Each Country

Source: Forrester Research, Inc.116779

Source: Forrester’s 2014 Mobile Banking Functionality Benchmark

Australia Poland

ANZ Bank Millennium

Commonwealth Bank mBank

NAB Spain

Westpac BBVA

Canada la Caixa

BMO Turkey

CIBC Garanti

RBC UK

Scotiabank Barclays

TD Canada Trust The Co-operative Bank

France HSBC

BNP Paribas Lloyds Bank

Société Générale Nationwide

Germany NatWest

Postbank Santander

Italy US

Intesa Sanpaolo Bank of America

UniCredit Chase

Netherlands Citi

ING Bank U.S. Bank

Wells Fargo




Figure 2 Customer Description And Goals


Customer goals

Customer description

Michael is a 36-year-old married man with two children. He recently started a new job ata biotech company earning a good salary. He and his wife just purchased an older homethat needs some repairs. He generally works long days, and the recent move and houserepairs have created a lot of stress and disorganization in his life. He has been bankingonline for more than six years and has recently been using his iPhone more and more forbanking activities so that he can stay on top of his �nances.

• Find and view a recent transaction. Michael realizes that he should have received his�rst paycheck for his new job last week. He remembers that he set up direct deposit andgoes to check on his iPhone if the paycheck was deposited in his account yet.

• Send $20 to his niece for her birthday without her account number. Michael is fairlydisorganized after the move, but he remembers that it’s his niece’s birthday while at the supermarket. He wants to send her $20 using Facebook or her email address because he does not have her bank account number on hand.

• Add a payee for mobile bill pay. Michael is having dinner with his family when herealizes that he hasn’t yet paid for his new cable and Internet connections. He wants toadd the cable company as a payee and pay his �rst bill.

• Find the branch or ATM closest to him: Michael receives a call from his wife on hisway home from work. She says that the electrician rewiring their house will only takecash payments. He wants to stop on the way home to get cash out of an ATM, buthe needs help because he is not yet familiar with the area.

The BeNChMaRK: GaRaNTI LeaDs, BUT MaNy BaNKs DO weLL

Forrester conducted the 2014 Global Mobile Banking Functionality Benchmark from March 19 through April 25, 2014, though our reviews for a few European and Australian banks were completed later.6 The 32 banks we reviewed achieved an average overall score of 61 out of 100 (see Figure 3).7 While the banks we reviewed are meeting almost all of mobile banking users’ basic needs, there are opportunities for all banks to improve and offer more advanced services. Specifically, we found that:

■ Garanti Bank of Turkey takes the top spot overall. Turkey’s Garanti performed exceptionally well with its new mobile banking app iGaranti.8 With a score of 80 out of 100, Garanti received the highest overall score among the banks we evaluated. Garanti scored a near-perfect 99 out of 100 in our transactional features category, not only delivering the basics superbly but also offering a wide range of transactional features for transfers, bill payments, person-to-person (P2P) payments, and point-of-sale (POS) payments, as well as an in-app digital wallet.




The bank also earned full marks in the marketing and sales category by recommending products based on customers’ spending habits and letting them apply for products directly on the app by completing a prefilled application. Garanti even lets users pick the features and content they want to have on their mobile banking app (see Figure 4).

■ Spain’s la Caixa and Poland’s mBank earn the second and third-highest overall scores. With an overall score of 74 out of 100, la Caixa achieved the second-highest overall score, while mBank received the third-highest score with 73 out of 100. La Caixa earned a perfect score in our range-of-touchpoints category and offers excellent content on its smartphone app. mBank, meanwhile, has become a leader in digital banking — starting with the launch of its new online banking platform and following up with strong mobile initiatives.9

■ Large US banks continue to lead in key areas. As a group, US banks averaged the highest overall scores in our review — Chase led the pack with a score of 69 out of 100, but every large US bank was within five points of this score.10 US banks lead largely because they do the basics so well. In fact, US firms averaged the highest scores in three key categories: account information, transactional functionality, and service features. Options such as letting customers add a payee from within the app, for example, help customers accomplish their goals quickly and conveniently.11

■ Digital teams can find best practices around the globe. Digital teams can find examples and take inspiration from their peers around the world. For example, cross-channel guidance best practices can be found in the mobile banking services from Canadian banks like CIBC and Scotiabank and from French banks like BNP Paribas.

■ Marketing and service features are common deficiencies for banks. All of the banks we reviewed have room to improve their mobile services, but we identified a few areas where digital teams tend to have the most work to do. Many of the banks we reviewed did poorly in both our service features and marketing and sales categories.12 For example, few banks include marketing calls to action or guidance to additional product information within their mobile apps and mobile websites.




Figure 3 Forrester’s 2014 Global Mobile Banking Functionality Benchmark Overall Scores


Garanti (TR) 80

la Caixa (ES) 74

mBank (PL) 73CIBC (CA) 71

Scotiabank (CA)

70BMO (CA)

70

Chase (US)* 69

U.S. Bank 69Wells Fargo (US) 68

Bank of America 66

RBC (CA) 65

BNP Paribas (FR) 64

Citi (US) 64

Bank Millennium (PL) 63

Barclays (UK) 61

Santander (UK) 60

Lloyds Bank (UK) 59

Société Générale (FR) 58

TD Canada Trust 55

UniCredit (IT) 54

Postbank (DE)

Intesa Sanpaolo (IT)

53

HSBC (UK)

52BBVA (ES)

52NatWest (UK) 47

ING Bank (NL) 46

Co-operative Bank (UK) 41

Nationwide (UK) 43

Global average 61

Commonwealth Bank (AU) 64

Westpac (AU)†

NAB (AU) 60

ANZ (AU) 56

53

*Chase released a new application after its review was completed.† Westpac was giving two different sets of functionality to different customers. The bank scored 62 in the service we reviewed in May.Source: Forrester’s 2014 Mobile Banking Functionality Benchmark

62




Figure 4 Garanti Lets Customers Customize By Selecting The Features They Want On The App


Source: iGaranti mobile app

App center

Shopping and deals

Savings

Social

Transactions

Smart money

GLOBaL BesT PRaCTICes IN MOBILe BaNKING

Our methodology provides a benchmark for the current state of mobile banking across 11 countries and uncovers good practices from the banks we assessed. From offering customers in-app alerts and letting them initiate a person-to-person payment with a mobile phone number to letting customers personalize their mobile experience by choosing their own content and functionality and helping them automatically or manually categorize transactions, we found best-in-class examples from almost all of the firms we assessed.




Leading Banks support a wide Range Of Mobile Touchpoints

Before banks can fully serve customers through mobile touchpoints, they have to ensure that customers can interact with them via mobile. Today banks have to develop mobile banking services for a range of different smartphone and tablet platforms — not to mention mobile browsers.13 Overall, European banks like la Caixa achieved the highest scores in this category of our benchmark.14 Successful banks lead in this area by helping their customers:

■ Interact with the bank via SMS. Although some banks in developed countries report decreased use of short message service (SMS) interactions relative to other mobile banking technologies, many customers continue to use text banking.15 Most of the large US banks offer SMS banking, but few large banks in Canada or Europe offer much in the way of it. In the US, Wells Fargo lets customers easily transfer funds by sending an SMS.

■ Easily access information and features through a mobile web browser. With firms in other industries delivering useful mobile websites, customers expect the same from their banks. Most banks have built mobile-optimized websites in order to meet this expectation — while a few banks like HSBC and Nationwide in the UK have started using responsive web design.16 Digital teams are starting to recognize the value of mobile websites for both transactional features and marketing content. UniCredit in Italy and Scotiabank in Canada are among the banks that use the pre-login screen of their mobile websites to promote a variety of products including credit cards, current accounts, and insurance. U.S. Bank’s mobile site advertises the firm’s mobile photo bill pay service and offers visitors product comparisons and even product recommendations (see Figure 5).

■ Download apps for a range of smartphones and operating systems. Digital banking teams still prize the control and device-specific options that downloadable smartphone apps offer. We looked at whether banks support customers across four operating systems: Android, BlackBerry OS, iOS, and Windows Phone. For the most part, digital teams offer customers a range of downloadable smartphone apps: We found that 23 of the 32 banks we reviewed support apps for three or more types of smartphone operating systems.

■ Conduct banking activities on a tablet. Many digital banking teams have designed unique features and functionality specifically for tablets. For example, BNP Paribas and CIBC offer iPad apps with interactive, graphical money management displays to help users visualize their current spending (see Figure 6). In addition, BNP Paribas customers can chat with an advisor who can help with tasks like product applications. Other banks are looking beyond the iPad: Bank of America and Intesa Sanpaolo offer tablet apps built for the Kindle, while Australia’s Westpac offers an app for Windows tablets.




Figure 5 U.S. Bank’s Mobile Website Includes Marketing And Product Recommendation Tools


Source: U.S. Bank mobile website




Figure 6 Tablet Banking Is On The Rise


Source: CIBC iPad app

CIBC provides visualizations on its tablet app6-1




Figure 6 Tablet Banking Is On The Rise (Cont.)


Source: BNP Paribas iPad app

BNP Paribas’ iPad app includes interactive money management displays6-2




Banks Offer Convenient enrollment and Login Options For Mobile Banking Users

Mobile app enrollment was once painful, with some banks requiring separate online and mobile login credentials or offering mobile experiences that differed wildly from what customers got on banks’ PC-based websites. Leading banks now make it easy to enroll in mobile banking and log in, providing experiences that match what customers are used to on the website. mBank earned the highest score of our benchmark in this category. Successful banks lead in this area by helping their customers:

■ Enroll in mobile banking. Almost all of the banks we reviewed now let customers log into online, mobile, and tablet banking services with common credentials, but some banks are taking it a step further: Barclays in the UK, Scotiabank in Canada, and Garanti in Turkey all let customers register for mobile banking without first registering via the PC-based website.

■ Understand how to use mobile banking. Another — often undervalued — aspect of mobile enrollment is helping customers get comfortable using mobile banking.17 To help customers get comfortable and familiar with mobile banking, Canada’s BMO offers an easy and intuitive guided demo for new users. Germany’s Postbank offers a tutorial. BNP Paribas and la Caixa go further by giving customers a preview of the app with a demo account prior to login.

■ Access some content and tools before login. Digital teams recognize that customers don’t need to be logged in for all banking activities — and customers like the convenience of accessing information without needing to enter a password. Surprisingly, just five of the 32 firms we reviewed offer a pre-login view of account balances: Examples include “Simple Balance” from Commonwealth Bank of Australia (CommBank) and Scotiabank’s “Quick Balance,” both of which let mobile banking users view their balances prior to login.18 Some banks offer other pre-login features: mBank shows its customers personalized, location-based offers before and after login (see Figure 7).

■ Log in without unnecessary hassles. Banks must meet expectations by making the mobile banking login process as painless as possible while ensuring privacy and security — no easy balance. Most large banks in developed countries now offer convenient features such as a

“remember this device” option and the ability to nickname accounts for faster logins. Other firms go further: In the UK, Barclays, The Co-operative Bank, and NatWest let users opt into an abbreviated login process using a simple five-digit PIN code — rather than requiring a full alphanumerical password.19




Figure 7 mBank Promotes Location-Based Offers Both Pre- And Post-Login


Source: mBank iPhone app

account Information Is extensive, But Money Management Is More Limited

Customers expect their core banking needs to be met on any remote touchpoint — from ATMs to tablets. These needs include accessing account balances and transaction histories. Barclays and CommBank earned the highest scores in this category. Successful banks lead in this area by helping their customers:

■ Land on a screen that helps them achieve their goals. The mobile screen customers land on immediately after logging in is a crucial part of their mobile banking experience, so leading banks are designing these pages to make it clear that users can successfully complete their task(s). Lloyds, a UK bank, offers a home screen that guides mobile banking users to a wide array of features and content available on the app. In Spain, la Caixa uses icons on its home screen to guide mobile banking users to key features (see Figure 8).

■ Easily find past transactions. The second most visited area of the average bank’s mobile app is the transaction history screen, so making it as easy to use as possible is crucial for mobile banking teams trying to exceed users’ expectations. Most banks offer sorting and filtering tools on their apps, but leading banks — including NatWest, Scotiabank, Bank of America, and Garanti — also offer natural language keyword search.




■ Receive, view, and store key documents. Many banks lag when it comes to mobile document delivery — letting customers view and save bills, monthly statements, and other documents.20 Leading firms in our benchmark show how it can be done: Scotiabank lets mobile banking users view and save bills and monthly statements. Barclays offers a digital “cloud” vault in which customers can view statements, upload bills and other financial documents by taking a photo, tag documents, and set up reminders (see Figure 9).21

■ Better understand their finances. Digital money management will ultimately be embedded at the heart of digital banking.22 Just five of the 32 mobile banking services we reviewed help users track and manage their finances. European banks stood out here, offering convenient and relevant digital money management features within their smartphone apps, with Garanti, Société Générale, BNP Paribas, and Postbank among the best. For example, Garanti’s app automatically categorizes spending and uses this and any scheduled payments to show the customer how much money he or she has left until the end of the month (see Figure 10).

Figure 8 La Caixa Provides Strong Cues From The Home Screen To Key Tasks


Source: la Caixa mobile app




Figure 9 Barclays Cloud It Lets Customers Access Electronic Statements Through Mobile


Source: Barclays iPhone app




Figure 10 Garanti Shows Customers How Much Money They Can Use Based On Planned Spending


Source: Garanti mobile app

Pendingpayments

Savings box

Plannedspending

Remainingfunds




Transactional Functionality Lets Customers Conveniently Move Money

As mobile banking users grow more comfortable using their smartphones for banking transactions, they will conduct more — and the importance of offering mobile transactional functionality will increase. Garanti really stood out from the other banks here, enabling almost any conceivable transaction for customers and achieving a near-perfect score. The largest US banks also do very well, helping customers with a wide range of transactions. Successful banks lead in this area by helping their customers:

■ Conveniently and easily move money and pay bills. Increasingly, customers expect mobile banking to support the full range of money movement types.23 Mobile money movement task flows should be efficient and convenient for users. To ensure this, BMO incorporates progress meters into every money movement task flow — from bill pay to account transfers to person-to-person (P2P) payments (see Figure 11).

■ Send money to someone without knowing their bank account details. Unless it’s a family member or close friend, most people looking to send money to another person don’t want to bother with bank account details like routing and account numbers. Person-to-person payments let customers send and receive money using the recipient’s email address, mobile number, or even Facebook. A range of banks we reviewed now support immediate P2P transfers that can be initiated directly from the user’s contact list on her mobile phone, while Garanti and Royal Bank of Canada (RBC) both let users send payments to friends via Facebook. Scotiabank also lets mobile users make Western Union payments (see Figure 12).

■ Deposit checks into their accounts. All five US banks offer mobile remote deposit capture (RDC), letting customers easily deposit checks with a simple snap of a picture on their phone.

Wells Fargo provides “photo tips” within the mobile app, and Citi provides contextual help while the customer is taking the photo of the check image. Most European banks don’t offer this because there is little or no check use in most European countries. CIBC recently became the first large Canadian bank to offer mobile RDC (see Figure 13).24

■ Use the cameras in their mobile phones to make paying bills quick and easy. Italian banks Intesa Sanpaolo and UniCredit — and Australia’s CommBank — all let customers use their mobile phones to make a postal payment or scan a QR code to pay a bill. Meanwhile, U.S. Bank lets customers add and pay a new payee in less than 5 minutes by taking a photo of a paper bill.25

■ Manage offers, payments, and rewards through a digital wallet. Forrester believes that digital wallets integrating offers, coupons, payments, and loyalty rewards are poised to transform the way consumers shop and make payments.26 Yet most banks haven’t yet rolled out integrated mobile wallets. Garanti is ahead of its peers here: The firm’s customers can scan their plastic cards to add them to a graphical mobile wallet. In addition to Garanti’s cards, customers can add other banks’ debit cards, as well as loyalty, insurance, and identity cards.27 CommBank’s Kaching — previously available only as a separate app — is now integrated within its everyday mobile banking app.28 Digital teams at other banks are also moving forward with mobile wallet pilots or partnerships.29




Figure 11 Canadian Bank BMO Includes Progress Meters For All Money Movement Task Flows


Source: BMO iPhone app




Figure 12 Scotiabank Enables Western Union Payments On Its Downloadable Smartphone App


Source: Scotiabank iPhone app




Figure 13 CIBC Became The First Large Canadian Bank To Offer Mobile Deposit Capture


Source: CIBC iPhone app

Other Than alerts, service Features Remain Limited

As mobile banking becomes the primary way that mobile banking users manage their money, they will expect to be able to initiate a growing range of customer-service tasks from within mobile banking. Unfortunately, few banks offer much in the way of mobile customer service. Globally, this was the category where the banks scored least well, though Citi, Garanti, Chase, mBank, and la Caixa offer customers the most help here. Successful banks lead in this area by helping their customers:

■ Quickly get answers to questions. As more customers adopt mobile banking, they will need to get familiar with the content and functionality banks offer— or in some cases, don’t yet offer. Today, the most important aspect of this is help and information that is presented to mobile users in context: For example, Chase does this by providing in-screen popups in key areas of its mobile app, such as bill pay. Barclays, meanwhile, offers an ever-present “Help” option at the bottom right of each screen on its iPhone app.

■ View and manage alerts from within the app. Most of the banks we assessed offer some type of balance, transaction, or security alerts, often via SMS. In-app alerts — also known as push notifications — offer alerts delivery that is more secure and convenient for customers. The US is the only geography where a majority of reviewed banks offer in-app alerts. In Europe, BNP




Paribas, Société Générale, mBank, UniCredit, and Garanti also offer in-app alerts. Chase, la Caixa, and BBVA, meanwhile, let mobile banking users modify the alerts they receive directly within the mobile app.

■ Search the entire app for content and features. As companies roll out more and more mobile features and content, users’ need for an easy way to find specific information or functionality increases.30 We predict that a growing number of banks — and other firms — will offer app-wide natural language search. In our benchmark, just one bank, Garanti, currently offers this service to mobile banking users.

Cross-Channel Guidance helps Customers Move To Other Touchpoints

Although the share of customers who use mobile as their primary banking channel is growing, most mobile banking users still use other channels, and they are often looking for seamless guidance from mobile to another banking touchpoint. We looked at how well each bank’s downloadable iPhone app helps a customer move from the app to another touchpoint. BNP Paribas, CIBC, BMO, Chase, and NatWest do this particularly well. Successful banks lead in this area by helping their customers:

■ Call the bank on the mobile phone. Digital banking teams should aim to make channel transitions as easy and convenient as possible for customers. All of the banks we assessed provide phone numbers on their iPhone apps, but the nature of their “contact us” content varies: mBank provides a Contact Us screen with a clean layout and prominent guidance to both phone and email options for the user. Garanti, meanwhile, is the only bank we reviewed to provide mobile chat within the app.

■ Find an ATM or branch. Perhaps the most common cross-channel service interaction in banking is customers using a mobile app or site to guide them to a branch or ATM, and most large banks offer at least some type of branch or ATM location tool. Leaders are taking it further: Wells Fargo and BMO have introduced branch-appointment-scheduling tools. BMO’s offering is exceptional: With a few clicks on their smartphone, BMO customers can schedule a meeting to talk about products like mortgages or about their financial future more broadly (see Figure 14).

■ Reach the bank’s social media streams. Certain consumer segments — especially the younger folks, who many banks want to court — show an affinity for integrating their connected devices into their social — and social media — lives.31 We looked at how well banks incorporate links to social media like Twitter and Facebook. CIBC, Garanti, la Caixa, National Australia Bank (NAB), Scotiabank, and Société Générale all provide clear, easy-to-find calls to action that lead mobile customers to their outlets on Facebook and Twitter.




Figure 14 BMO Offers An Excellent Branch Appointment Scheduling Tool


Source: BMO iPhone app

Mobile Marketing efforts Vary widely By Country and Bank

Today, mobile banking remains focused largely on serving existing customers. But as mobile banking displaces online banking as the hub of many customers’ relationships with their banks, digital banking teams will need to use mobile touchpoints both to win new customers and to sell more products and services to existing customers. Garanti really stood out from the other banks with a perfect score, though la Caixa in Spain and Barclays, HSBC, and Santander in the UK were also effective here. At the other end of the spectrum, we found a complete lack of marketing, product information, or cross-selling features on nine banks’ mobile apps. Successful banks lead in this area by helping their customers:

■ See offers relevant to them. Mobile offers an opportunity to cross-sell to existing customers and promote additional services. More banks are trying out marketing tactics on mobile: For example, TD Canada Trust’s iPhone app includes advertising that touts the firm’s current mortgage rates, plus calls to action like clickable phone numbers that generate sales leads for the bank. Too few banks offer personalized in-app mobile marketing tailored to customers, failing to take into account the context of the customers’ location or recent interactions with the bank. But we did identify a few exceptions: Garanti uses information from the app’s budgeting tools to make contextual offers for savings and loans, which the customer can apply for directly through the app. BMO’s app, meanwhile, places prompts for additional products the customer doesn’t currently own on the main accounts screen.




■ Research additional products and services. Beyond in-app marketing, digital banking teams should also be offering more product content and research tools, such as CommBank’s dedicated “offers” section (see Figure 15). Today, few banks offer this, though again Garanti is the exception: The firm lets mobile banking users research products ranging from credit cards to loans to deposit accounts without leaving the mobile app. In addition, the iGaranti mobile app recommends products based on the customer’s profile (see Figure 16). In the UK, Lloyds Bank’s app includes a products tab, while Santander offers a mortgage affordability tool. Australian banks Australia and New Zealand Banking Group (ANZ) and CommBank provide tables on their apps to let mobile banking users compare products.

■ Easily apply for a product or account. Digital banking teams need to help customers apply for products directly from mobile touchpoints like iPhone apps. Scotiabank lets customers complete a prefilled application from within the smartphone app — an impressive feature that helps the bank target key mobile users with particular product offers. Bank Millennium, mBank, la Caixa, and Garanti all let customers apply for a product via a smartphone app. mBank lets existing customers open a savings deposit account directly on the app in just two steps.

Figure 15 Commonwealth Bank Of Australia Presents A Range Of Offers Within Its Mobile App


Source: Commonwealth Bank of Australia iPhone app




Figure 16 The iGaranti App Serves Up Contextual Offers Based On Clients’ Behavior


Source: Garanti iPhone app

My Savings

Saving will becomea habit, one clickturns into earningmoney.

Deposit yourmoney in iVadeli,and it will grow.

Open an iVadeli deposit

Savings Box

Total ExpendituresTotal Savings

R e c o m m e n d at i o n s

DIFFeReNTIaTe By FOCUsING ON CONVeNIeNCe aND CONTexT

At many large banks, digital teams can rightly be proud of the improvements they’ve made to mobile banking over the past few years. But there’s no time for a ticker-tape parade: Competitors are piloting new features like mobile wallets and mobile photo account opening. Apps from potential disruptors frequently top the list of popular finance apps on app stores like iTunes and Google Play and threaten to disintermediate banks. Established disruptors like Amazon, Apple, Facebook, and Google continue to test payment- and wallet-related propositions.32 Mobile messaging apps like WhatsApp are rapidly growing into platforms that could radically change how banks talk to their customers.33 Faced with a fast-moving competitive and technology environment, Forrester recommends that digital banking teams:




■ Seek opportunities to create and deliver new value to customers. Take inspiration from the finance-related apps people are downloading and paying for at app stores to find opportunities for new functionality. Often this will involve using other sources of information, either from the customer’s smartphone or from publicly available data sources. For example, Garanti worked with a variety of other companies to integrate innovations such as mobile payments, mobile money management, merchant-based offers, and voice control into its iGaranti mobile banking app.34

■ Develop relevant marketing offers and cross-selling capabilities. Digital teams should use tactics such as interstitials, banner ads, and embedded ads to promote relevant products and services to existing customers. Context is often about location, but delivering messages that are relevant to an individual customer will also require digital banking teams to connect their mobile services to their bank’s CRM system. Mobile banking leaders like mBank and Garanti already make relevant product offers and merchant-based offers, based on customers’ profile, spending patterns, and location as they use the bank’s smartphone apps.35

■ Define and plan how to execute a digital wallet strategy. Digital wallets integrating offers, coupons, payments, loyalty rewards, and personalized recommendations are poised to transform the way consumers shop and make payments, delivering more value, greater convenience, and a compelling, contextually relevant experience.36 Banks that do nothing risk losing their relevance and watching other firms come between them and their customers.37 Forrester believes that mobile banking is the natural platform for mobile payments. Digital banking teams need to understand their customers’ needs, develop a vision of the bank’s role in a customer’s digital wallet, assess their existing capabilities, and evaluate potential partners. While wallets aren’t ready for prime time yet, the infrastructure, expertise, skills, and partnerships needed to deliver them will take time to build.

■ Define what role they will play in a wider ecosystem of value. Forrester believes that the future of business is digital. Customers are assembling the solutions to their problems with a collection of instantly available digital products and services from your suppliers, partners, digital disruptors, other customers, and competitors.38 We call this new world a “dynamic ecosystem of value.” Your success demands that you embrace this new ecosystem and become a part of it by thinking differently about how you collaborate with other firms to create value for your customers.

■ Focus on the convenience of new features. To quantify the convenience of a possible feature, we recommend our Convenience Quotient: a single number from -1 to 1 that tallies the benefits minus the barriers.39 When digital teams at banks are looking to enhance or roll out a mobile feature, they should use the Convenience Quotient to assess their options.40 For example, U.S. Bank assessed the various benefits and barriers of mobile photo bill pay prior to becoming the first bank to roll out the feature. The Dutch firm ING Bank, meanwhile, saw the convenience in embedding calls to action —for actions like account transfers — alongside balance info on its mobile app’s home screen.




■ Use context to cultivate next-generation offerings. Digital banking teams should make more use of context — which we define as the sum total of what you know a customer or prospect is experiencing at his moment of engagement.41 Often, this will mean developing functionality that makes use of non-bank information users have access to via their smartphone. Context is often about location, but delivering messages that are relevant to an individual customer will also require digital banking teams to connect their mobile services to their bank’s CRM system.

H o W F o R R e s t e R c a n H e L P

BeNChMaRK yOUR MOBILe BaNKING TO IDeNTIFy sTReNGThs aND weaKNesses

Each bank has different strengths and weaknesses and different priorities as a result. So how can digital banking teams gauge how their mobile banking services stack up against others and decide which features are most vital for their customer experience and business strategy? Forrester’s Mobile Banking Functionality Benchmark can help by:

■ Providing a custom review of your mobile offerings. Forrester uses the methodology from this report to provide digital teams with custom reviews of their mobile banking services. We deliver a full accounting of your score on each criterion and category and on your mobile services overall — plus a ranking showing how your mobile banking services stack up against those of your peers.

■ Highlighting your strengths and weaknesses in mobile. By comparing your mobile banking scores against those of other banks on a category-by-category basis, Forrester helps digital teams pinpoint key strengths and areas of opportunities within mobile banking. We also expand on the best practices mentioned in this report and provide additional examples and best practices tailored to your areas of opportunity.

■ Providing actionable recommendations based on gaps and opportunities. Forrester’s Mobile Banking Functionality Benchmark can help you identify immediate next steps and long-term improvements for your mobile banking strategy.




sUPPLeMeNTaL MaTeRIaL

Benchmark Methodology

Forrester conducted its Mobile Banking Functionality Benchmark evaluation of 32 large retail banks from 11 countries from March 19 through May 19, 2014. The North American reviews were all completed by April 25, 2014. The reviews for the Australian banks were completed by May 19, 2014. Our methodology involves scoring the banks’ mobile offerings across 37 criteria. As far as possible, we used an iPhone 5 for criteria focused on firms’ smartphone apps and mobile websites. We used a Samsung S2 Galaxy for the two Polish banks.

If you’re interested in taking part in Forrester’s Mobile Banking Functionality Benchmark or in learning more about our ongoing mobile banking research, please contact your account manager or contact Forrester’s inquiry team at [email protected].

Companies Interviewed For This Report

We would like to thank the individuals from the following companies and others who generously gave their time during the research for this report.

Bank Millennium

Bank of America

Barclays

BBVA

BMO

Chase

CIBC

Citi

Commonwealth Bank of Australia

Garanti Bank

HSBC

ING Bank

Intesa Sanpaolo

la Caixa

Lloyds Bank

mBank

Nationwide Building Society

NatWest

Postbank

Royal Bank of Canada (RBC)

Santander

Scotiabank

Société Générale

TD Canada Trust

The Co-operative Bank

U.S. Bank

UniCredit

Wells Fargo




eNDNOTes1 We benchmarked the mobile banking services of retail banks from Australia, Canada, France, Germany,

Italy, the Netherlands, Poland, Spain, Turkey, the UK, and the US. We chose these banks as representative of the leading retail banks in each country. To include a bank in the benchmark, we had to be able to access a real account or a fully functional test account. Please note that we do not claim that the banks we reviewed have the best mobile banking functionality in the world, but we believe that the group contains some of the leading mobile banking services in the world and that the banks we chose provide a useful benchmark of mobile banking services worldwide.

2 We used our Mobile Banking Functionality Benchmark methodology to evaluate the mobile banking offerings of the large retail banks in Canada, Continental Europe, the UK, and the US, which we have published in separate reports. See the May 27, 2014, “2014 Canadian Mobile Banking Functionality Benchmark” report, see the May 27, 2014, “2014 US Mobile Banking Functionality Benchmark” report, see the June 23, 2014, “2014 European Mobile Banking Functionality Benchmark” report, and see the June 23, 2014, “2014 UK Mobile Banking Functionality Benchmark” report.

3 For the Polish banks we used an Android app. Our logic for only including each bank’s main banking app in the benchmark is that a customer should not need to download an additional app to complete common retail banking tasks like checking his account balance or making a payment. Note that by choosing to base the review on each bank’s main retail banking app, we put firms that offer multiple apps, such as separate mortgage, money management, or payment apps, at a potential disadvantage. However, the overall objective of this research is to uncover good practices, not rank the banks.

4 We develop custom weightings using data from our Consumer Technographics® surveys, combined with analyst insights and feedback from our digital banking clients.

5 We amended the weighting this year to give a slightly higher weight to enrolment and login and sales and acquisition. The additional emphasis on these categories has resulted in some banks’ overall scores falling this year despite improvements across many categories.

6 To include a bank in the benchmark, we had to be able to access a real account or a fully functional test account.

7 Please note that we do not claim that the 32 banks we reviewed have the best mobile banking functionality in the world, but we believe they provide a representative benchmark of the state of mobile banking in developed economies.

8 Garanti Bank has integrated a number of innovations such as mobile payments, mobile money management, merchant-based offers, and voice control into its mobile banking app, iGaranti, which was launched in May 2013. Read this report to learn more about the process of revamping the mobile banking experience. See the January 8, 2014, “Case Study: iGaranti Reimagines The Mobile Banking Experience” report.

9 On June 4, 2013, Poland’s mBank launched a revolutionary new online banking platform. The platform delivers a new generation of digital banking, with a mix of customer-centric interfaces, advanced and integrated money management features, quick search, gamification, real-time customer relationship










management (CRM), merchant-funded rewards, Facebook integration, and video banking. For more information, see the November 12, 2013, “Case Study: mBank Builds A Next-Generation Online Banking Experience” report.

10 Chase also earned the top spot in last year’s 2013 US Mobile Banking Functionality Benchmark. The firm’s success comes from ensuring the most commonly used features and content are available to mobile banking users across a range of touchpoints, as well as smart decision-making when it comes to design choices. For more information, see the April 25, 2013, “2013 US Mobile Banking Functionality Rankings” report.

11 Most large US banks now allow customers to add a new payee from within the mobile banking experience. For more information, see the May 27, 2014, “2014 US Mobile Banking Functionality Benchmark” report.

12 Banks’ deficiencies around mobile marketing and mobile customer service are nothing new: In our benchmark last year we found similar issues for banks around the world. For more information, see the April 25, 2013, “2013 Global Mobile Banking Functionality Rankings” report.

13 As mobile continues to evolve, the lines between mobile-optimized websites and native apps will continue to blur. This is already starting to happen, of course: Two of the five largest Canadian banks offer downloadable BlackBerry apps that are, in fact, just “wrappers” (sometimes called “launchers”) that let customers access each firm’s mobile website. One major trend in this area is the user of responsive web design: SunTrust, a regional US bank, employs responsive design in order to better use valuable internal resources to maintain only one web platform instead of maintaining and optimizing multiple fragmented user experiences. For more information, see the April 4, 2013, “Case Study: SunTrust Reboots Its Digital Platform” report.

14 To take a closer look at the findings from our review of mobile banking offerings in Continental Europe, see the June 23, 2014, “2014 European Mobile Banking Functionality Benchmark” report.

15 The decreased use of SMS banking relative to other mobile touchpoints is evident in both the US and Canada, but this decline in SMS banking use should not be misconstrued as a decrease in mobile messaging more widely. Mobile messaging apps like WhatsApp and WeChat are growing fast in many parts of the world. For more information, see the March 27, 2014, “Mobile’s Trojan Horse: The Messaging Platform” report.

16 Responsive web design takes center stage in many enterprise discussions about mobile — but comes with hype and confusion in tow. eBusiness professionals need to understand responsive web design’s complexity in order to decide when they should take advantage of it to meet their customers’ mobile needs. See the November 13, 2013,“Solving The Quandary Of Responsive Design” report.

17 Leading banks like USAA — as well as firms like eBay and The Washington Post in other industries — have seen increased use of both individual mobile features and mobile apps as a whole after rolling out guided demos, video tutorials, and other elements that help customers get comfortable with mobile banking. Source: Forrester’s conversations with eBusiness leaders at banks and other companies.

18 Mobile features like pre-login account info — Westpac’s “cash tank” being just one example — are where mobile banking is headed. Forrester has outlined our vision of the future of mobile banking, where customer retention, new revenues, and brand differentiation are at stake and digital teams keep innovating, driven by consumer demand, enhanced offerings from leading banks, and third-party disruptors. For more information, see the November 12, 2012, “The Mobile Banking Imperative” report.














19 Barclays also uses its mobile app to make online login more convenient, with PIN Sentry, which lets customers do secondary authentication with the app, instead of the UK common practice of card readers. See the January 29, 2014, “2013 UK Bank Secure Website Rankings” report.

20 Companies in other industries allow users to read and even download important documents on their smartphone apps. US cable company Comcast, for example, lets cable subscribers view their bills on the firm’s iPhone app.

21 Digital vaults are an extra incentive for customers to go paperless and a way to make it easier for customers to share important documents with their bank.

22 Today’s digital banking offers customers a one-size-fits-all experience with poorly integrated PFM tools. Instead, digital money management should be the starting point for customers when they log in to the secure site or open up an app on their smartphone or tablet. A personalized dashboard will show customers, at a glance, information they need to see. Customers will move on to transactions ranging from today’s common activities like transfers and bill payments to advanced options such as spending analysis, budgeting, and financial advice. For more information, see the April 22, 2014, “Trends 2014: North American Digital Banking” report.

23 We looked at a range of money movement types, including account-to-account transfers, bill pay, Interac P2P payments, and more. We also evaluated the task flows, timing options, and other aspects of these features.

24 Starting in 2008, CIBC — one of the five largest Canadian banks — saw momentum building behind mobile banking, momentum that would likely increase with the launch of the iPhone in Canada. As part of its strategic plan to offer clients increased access and choice in how and where they bank, CIBC developed its mobile strategy. The company implemented a mobile banking architecture built by Sybase and launched mobile banking via WAP, iPhone, and rich HTML to its clients. For more information, see the November 10, 2010, “Case Study: CIBC Takes The Canadian Mobile Banking Market Beyond WAP” report.

25 Early in 2013, US Bank launched mobile photo bill pay: A feature that lets mobile banking users add a new payee simply by taking a picture of a paper bill or statement. Forrester believes this represents an innovation in two key ways: First, it demonstrates how innovating the adjacent possible can be used to offer convenient mobile services to bank customers; Second, it fits into the next-generation of cross-channel interactions we believe will become more prevalent in banking over the next five years. Source: Peter Wannemacher, “U.S. Bank Tackles Cross-Channel Banking With Innovative Mobile Photo Bill Pay,” Peter Wannemacher’s Blog, April 23, 2013 (http://blogs.forrester.com/peter_wannemacher/13-04-23-us_bank_tackles_cross_channel_banking_with_innovative_mobile_photo_bill_pay).

26 Forrester defines a digital wallet as a digital service — accessed via the Web or a mobile application — that authorizes payment transactions from one or more payment sources and facilitates other commerce-related features such as offers, coupons, loyalty rewards, electronic receipts, and product information. Mobile digital wallets are digital wallets that can be accessed via a mobile device.

27 These can then be used for online or on-site shopping and for pre-staging ATM withdrawals with a QR code. In order to initiate a payment, the customer scans a QR code that a merchant presents via its point-of-sale (POS) terminal, paper receipt, or invoice. Similarly, to withdraw cash from the ATM, the customer only








needs to scan a QR code displayed on the ATM. Integrating a digital wallet directly into its mobile banking app allows the bank to control the customer experience of multiple aspects of the mobile payment process, including authentication, enrollment, payment options, and future features like loyalty and promotions.

28 Commonwealth Bank of Australia’s Kaching app enables multiple types of payment, including transfers between a customer’s own accounts, transfers to other accounts, bill payments through Australia’s BPay service, MasterCard PayPass payments at the point of sale (using an iCarte case, not an integrated NFC chip), payments to friends through email addresses and mobile numbers, and even payments through Facebook.

29 In Canada, CIBC has partnered with Rogers Communications and — more recently — Telus Communications to offer NFC-enabled mobile wallet payments via the firm’s CIBC Mobile Payment App. RBC Royal Bank, meanwhile, recently introduced the RBC Wallet, which is the first in Canada to let customers use debit or credit cards for mobile payments. CIBC has suggested that an additional partnership with Bell is likely in the near future. Source: “CIBC and TELUS launch mobile payments,” Canadian Imperial Bank of Commerce press release, February 4, 2014 (http://online.wsj.com/article/PR-CO-20140204-904734.html). RBC Royal Bank’s mobile wallet lets customers pay with their “their RBC Interac Debit or Visa credit cards using their Bell Mobility Android smartphone.” Source: “RBC Wallet now available: First Mobile Solution to provide Canadians with the Choice of Debit or Credit,” RBC Communications press release, January 22, 2014 (http://online.wsj.com/article/PR-CO-20140122-906437.html).

30 When banks’ apps offered a limited number of features (e.g., view balances, bill pay, account transfer, and branch location), this was not an issue. But banks already have far more mobile content: For example, on one bank’s smartphone app, it takes a user eight clicks and gestures to get to the “contact us” screen — and that’s even if the user knows exactly where to go. Universal search won’t solve every problem, but it can help customers find what they need quickly and conveniently.

31 Forrester has looked closely at the mobile, social, and wider digital behavior of different generations. For more information, see the July 23, 2013, “The State Of Consumers And Technology: Benchmark 2013, Canada” report.

32 Digital wallets are poised to transform the way consumers shop and pay retailers, restaurants, and service providers. Early wallets are enabling the convergence of offers, coupons, loyalty, and payments. Successful wallets will enhance the consumer’s commerce experience by delivering more value, greater convenience, and a contextually relevant, compelling experience. See the December 2, 2013, “Craft The Right Digital Wallet Strategy For Your Financial Institution” report.

33 Mobile messaging may seem like an area outside of banks’ concerns, but it’s not hard to imagine a future with fewer, more thoroughly contextual and curated portals to the universe of services from mobile devices. Companies should consider the possibility of a future where their access to consumers is through a small set of services. See the March 27, 2014, “Mobile’s Trojan Horse: The Messaging Platform” report.

34 Mobile banking is the future. Yet many banks still haven’t embraced its full potential, adopting a new version of the past instead. Turkey’s Garanti Bank has taken a different approach. See the January 8, 2014,

“Case Study: iGaranti Reimagines The Mobile Banking Experience” report.










35 Garanti works with Foursquare to have a constant stream of deals on the app. The offers are tailored to the customer; spending patterns are used to identify his or her favorite brands. This information is then used to offer the customer exclusive deals from these brands. A partnership with Foursquare enables iGaranti to further link the offers to the user’s location. Users who check in on Foursquare are informed about offers in nearby stores through push notifications. Additionally, third-party apps of merchants such as Bonubon, a daily deals site; Markafoni, a private shopping site; and the Biletix ticket distributor can also be integrated into iGaranti. In this way, iGaranti has placed itself at the center of customers’ financial lives. See the January 8, 2014, “Case Study: iGaranti Reimagines The Mobile Banking Experience” report.

36 Forrester defines a digital wallet as a digital service — accessed via the Web or a mobile application — that authorizes payment transactions from one or more payment sources and facilitates other commerce-related features such as offers, coupons, loyalty rewards, electronic receipts, and product information. Mobile digital wallets are digital wallets that can be accessed via a mobile device.

37 Banks that do nothing will fall behind other wallet providers and risk losing relevance and competitive differentiation as their customers establish trust and confidence with other firms that are providing greater value and convenience. See the December 2, 2013, “Craft The Right Digital Wallet Strategy For Your Financial Institution” report.

38 They can do this because every company, every digital aggregator, every supplier, and every retailer is building apps and sites, making it effortless for customers to pick from a menu of everything they need. See the March 26, 2014, “The Digital Business Imperative” report.

39 Convenience is an all-encompassing concept. Its power lies in the fact that it can be expressed in a single measure — a Convenience Quotient, in which any positive score represents a greater level of benefits than barriers and a negative score means that the barriers outweigh the benefits. For more information, see the February 6, 2009, “Cracking The Convenience Code” report.

40 Forrester has worked with clients to apply the Convenience Quotient to mobile efforts. This has included a detailed look at the convenience of whole categories of mobile services. For more information, see the May 27, 2011, “How eBusiness Professionals Can Use The Convenience Quotient To Prioritize Mobile Services” report.

41 The ability to deliver highly contextual experiences will evolve in sophistication with technology in the phone. This will require digital teams to focus on the immediacy and simplicity of mobile features. For more information, see the May 1, 2012, “The Future Of Mobile eBusiness Is Context” report.








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