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products_iphonePredicting Future Innovations

I was asked yesterday, “Robb, what’s the next big mobile banking innovation we can expect to see in the next 12-18 months?” What a great question! Mobile banking is now driving the innovation train when it comes to self-service banking. Internet banking is legacy; mobile is the future.

So what is next? First, anyone who tells you they know the answer to this question is not going to be right. Mobile moves too fast for an 18-month prediction to be correct. We figure a nine month window of visibility is about all we can safely provide. For us, that is nine separate monthly releases including all sorts of incremental innovation, and who knows, somewhere in there might be the next big thing.

Constant, Incremental Improvements

Mobile banking innovation will come out of a constant and steady stream of incremental innovation, lots of singles and doubles. And maybe, just maybe, we will hit on the next big thing. Two examples of this are the debit card on/off switch and Picture Pay. Both ideas, by the way, came from banks themselves. Great ideas come from the “coal-face” not the sterile lab of a software vendor. Both were built within 60 days and were live shortly thereafter. And when launched by those banks, both features were first in market and now have become much bigger deals. On average 10%-12% of active mobile users take pictures of bills each month to make payments. 15%-18% of active users access the debit card feature every month. Here we see success measured by actual usage.

During that same period, various incremental improvements were also released, all extremely valuable. We’re about constant, incremental improvements. Keep the foot on the pedal, release often and keep your end-users engaged. Side note but a useful factoid for FIs who want to know how to keep end users engaged: when a new mobile service or feature is launched, we see active usage spike sometimes as high as 10%-15%. New features improve engagement and usage levels.

Internet vs. Mobile and its convenient features

In the next nine months, there will be a lot going on in mobile and Internet banking. Mobile is now on par with Internet in terms of functionality. This is leading to a reality where up to 30% of mobile users no longer use Internet banking. Why go to the desktop if I can do everything on a mobile device?

The Camera

For example, the camera is taking over. Mobile Check Deposit is used by 25% of active mobile users and Picture Pay is used by 10% of active mobile users. Now we have new account Onboarding, where you take a picture of your drivers license and open an account in 5 minutes with almost no data entry. Game changers.

Small Business Solutions

Small businesses are finally garnering attention in the industry. Those small businesses normally stuck on the retail platform are now going to see features and functions tailored just for them. Not consumer, not corporate, but a bespoke solution just for them. Technology reporter for American Banker, Mary Wisniewski, wrote an insightful article on the topic, check it out.

Debit Card Management

Short and sweet: version 2 is launching, with additional controls like merchant limits and geo-fencing.

While we hedge our predictions, we can say there are new features and functions in mobile banking guaranteed to come. Constantly, incrementally. We’d love to hear your thoughts on the topic. What do you predict? What would you like to see?

Robb Gaynor, Chief Product Officer Malauzai Software robb.gaynor@malauzai.com