I am constantly amazed by what can be perceived as innovative in the mobile banking channel. I believe innovation at it’s core is the ability to “keep the foot on the gas” of your roadmap and constantly evolve your product with incremental improvements. We use the concept of Kaizen here at Malauzai to help represent this philosophy of continuous improvement. Once in a decade we see big innovation, such as the Internet or iPhone. These huge leaps in technology are unique. For most of us regular folks, innovation should be gauged differently, I mean, we are not all Steve Jobs. Out of constant and persistent innovation comes improvement and ultimately evolution. This capability must be coupled with a development methodology, such as Agile, that allows you to respond to new ideas quickly. And learning through analytics and testing must be a part of this equation.
Innovation by the Numbers.
In my last blog I mentioned analytics that leverages “little data”. Community financial institution leaders are starting to demand access to data that produces actionable results before they make decisions related to the mobile channel. That only makes sense – knowing user activity is crucial to innovation. Case in point, mobile banking experiences a 15% login failure rate meaning that 15% of the time an end-user tries to login, they fail. By studying the daily analytics, we can find these failures and fix them fast. Fail-fast and respond, that is the key to innovation. In the case of login failure, we had access to little data, which allowed us to run extensive usability tests to see why people were failing. By applying a few very basic solutions, login failure fell below 10%.
Launch, study, learn and change.
Another great example is taking pictures of checks. Mobile check deposit is another highly innovative technology powered by Mitek Systems. They studied the data and saw that snapping photos was a challenge for end-users. They addressed this by developing a capability to use the video camera on smartphones. Now an end-user simply “hovers” over the check, and the camera automatically takes a picture when the image is of the highest quality. Rate of image quality and check acceptance went way up.
I find it amazing that simple things like turning off a debit card, or being able to take a picture of a bill to pay the bill, are seen as innovations. I think most will find that success isn’t always about huge leaps in technology but keeping your roadmap timely and continuously evolving. Simple incremental improvements vs benign competition… Incremental improvement will win every time.