Posts Tagged ‘iPad’

It’s A Mobile World

Apple recently released their third quarter earnings and the iPhone and iPad combined for 68% of all of Apple’s revenue.  The iPhone actually makes up 46.6% of the total revenue, which breaks down to over 20 million units and $13 billion.

In case you’ve been sitting on the fence about implementing that mobile strategy, it’s time to go all in.  Android device sales have been keeping pace with Apple devices.  In the near future, more people will access the web from their mobile device than their computer.  You can bet they’ll be looking for that cool mobile banking app also.

FIs Are About To Be Blindsided…Again

May 13, 2010 5 comments

I’m not sure if you heard, but this little tech company out in California has a couple of neat devices called the iPhone and iPad.  So far, banks and credit unions have been holding back from jumping into the mobile banking space.  But I believe momentum will grow exponentially over the next two years.

The problem is it might just be too late.  One of the main reason FIs haven’t jumped into the mobile space is because there is no clear ROI.  Instead, they mostly hear about the cost savings in other areas like the call center.  No one is charging for mobile banking in the United States.  And until Bank of America, Wells Fargo or Citibank does, I don’t think anyone will.

One idea I have heard floated for income is charging commercial customers.  The reason being companies are typically charged for using cash management services.  Another one is getting transaction income from mobile payments. Make no mistake, mobile is the biggest growth area for financial services.  I believe that within five years, customers will access their account information mostly from a mobile device.  The iPad and other “tablet” computers will only accelerate this growth.

Fiserv’s iPad demo at Finovate Spring 2010 is just a sample of what’s to come.  But what no one is noticing are the companies that are going around banks and credit unions.  Square’s apps for the iPhone and iPad will take away from those lucrative merchant accounts that customers normally get through their FI.

The biggest threat is the new Transaction app that Apple is working on.  Basically, Apple will turn your iPhone into a credit card by using NFC.  So just like PayPal became the standard for online transactions, it looks like Apple could become the standard for mobile transactions.  And if everything is going mobile, where exactly does that leave your FI?

iPad and Banking

April 8, 2010 3 comments

The Financial Brand sent an interesting tweet earlier: “If online banking works fine on iPads, then why would a financial institution ever need to build an iPad-specific app?”

Maybe it’s the geek in me, but I see the iPad as a way to redefine online banking.  While having lunch this week with a couple of co-workers and  Bryan Clagett (@clagett) of Geezeo, we talked about online banking in general.  Most FI customers currently go to their FI’s homepage and then go directly to online banking.  They never look over the other information that’s listed on the website.

I believe an iPad app can be more beneficial to customers.  For instance, you can push balance/transaction alerts.  You could also push alerts about rate changes and marketing events or even iAds.  An iPad app would give a FI the opportunity to make mobile banking more PFM like, which would be a much better experience.

My point is, if newspapers can see the benefit of having an app instead of just letting people go to their website, there must be some tangible benefit.  You’re only limited by your imagination.  I believe most online and mobile web banking experiences are pretty crappy.  The iPad gives you the outlet to really do it right.

Picture by d!zzy/flickr

Banking On Mobile

February 3, 2010 3 comments

Apple’s announcement of the iPad has sent ripples throughout all industries.  The biggest question is, can we use it to further our business goals?  NetBanker has a post about what the iPad could mean to banking.  But before I get into that, I’d like to share some thoughts about the iPad in general.

To my core, I believe the iPad will have a much bigger effect on household computing than the Wii did on home video games.  When the Wii came out, it was considered a weak machine when compared to the competitors.  The wireless, motion controller looked cool, but it was a kids’ system.  Sony and Microsoft still haven’t reached the number of sales to that of the Wii.

While the PS3 and XBox were geared towards hard core gamers, the Wii was targeting causal gamers.  Nintendo went after everyone that didn’t really play video games, which is a much bigger market.  Say what you will, but I know a lot of people that ended up with “Wii-bow.”  The Wii was embraced by a market of age 2-100.  Adult care facilities even picked up a few systems for their residents.

Now, looking at the iPad, I see the same potential.  Blog posts by Ethan Nicholas on TechCrunch and Dan Moren at Macworld reinforce that belief.  There are plenty of posts, such as Randall Kennedy’s at Infoworld, that talk about how the iPad won’t kill the netbook.  I don’t think the iPad will completely kill the netbook, but it will make it irrelevant to the masses.  You see, the iPad isn’t geared for geeks or even heavy computer users.  It’s for all those people that want something that is easy to use and just works.

Being an IT guy, I too have to do tech support for my family and friends.  An iPad takes all that away.  There is no need to install anti-virus software and keep it updated.  No silly spam blockers, firewalls or driver updates either.  The iPad is a closed system, so it takes all those headaches away.  Plus it even functions as an e-reader, which is one thing that I can’t wait for.

I think the iBookstore will really open people up to using electronic devices.  One example is my wife.  This past spring I was going to get a Kindle for her.  Now, we read an average of ten books a month between the two of us.  She wasn’t interested in the Kindle at all.  She wanted to actually hold a book and turn the pages.  That was the best experience to her.  Well, her mother gave her a Kindle for Christmas.  Now I believe she loves that thing more than her Blackberry Storm and iPod combined.

Once people get an iPad in their hands, I believe they will love it just as much.  Oh, and one knock I heard was that it was a wi-fi device, no ethernet connection for when no wireless was available.  A lot of these potential households have wireless networks because they also have Wiis, PS3s and XBoxes.  So it will mostly be used at home or in places with a wireless connection.

So, how does this relate to banking?  Well, all these new iPad owners will become a lot more comfortable with computers in general.  They’ll finally have a device that is intuitive and makes checking their email, browsing the web and reading books simple.  As they get more comfortable, they’ll spend more time in that App Store and they’ll discover even more apps that fit into their life.

This is where your bank comes in.  All those customers that just weren’t interested in internet banking?  Now they’ll have the device that helps make them more open to using your service (hope your IB provider supports Safari and not IE6 only).  Even better, if you have an app in the App Store, you can provide a better banking experience to them.

If you didn’t have a mobile strategy before, you might want to start working on one now.  There will be a lot more people that want an iPad for home use than those that want an iPhone with AT&T.

Also, join us in Charleston on Feb. 27th, 2010 for BarCampBankCharleston where we can discuss topics like this in an informal group setting. The information site can be found here and registration here. This is a free event so come on down.

Picture by d!zzy/flickr