What the iPad Means to Mobile Banking
Selling some 300,000 units upon its April 3 release, Apple's iPad could represent a new era of content consumption and interaction. And with more tablet PCs on the horizon, this new category of consumer electronics could affect mobile banking.
Geoff Knapp, vice president, online banking and consumer insights for Fiserv, a financial information management and service provider, believes the iPad in particular, with its iPhone-like operating system, iTunes App Store and 9.7 inch touch screen, could present an advantage in the future to banks willing to adopt the technology early and develop native apps. Early on, he believes banks will promote banking on the iPad through a mix of browser-based banking, already-existing iPhone apps and basic iPad-specific apps.
"There will be a handful of early adopters that will probably invest in whole-new user experiences that we've never seen, and then there will be the laggards that look at those and do something slightly different," Knapp said. "So there will probably be a multiyear wave approach, as I would imagine. I think the danger there for banks that wait, there's a chance to fall behind."
But because tablet computing on such a wide scale is new, its impact on banking is not immediately obvious, said Carl Howe, Yankee Group director of Anywhere Consumer Research.
"Up until last week, the general consensus was tablet computers are a general failure," he added. "This week, not so much."
And the iPad is not the only tablet computer consumers will see this year. Fusion Garage released the JooJoo, which has its own browser-based operating system, on the same week as the iPad. HP announced its Windows 7 tablet - dubbed the Slate - in January. Other companies such as Nokia and Samsung have announced their development of new tablet computers as well.
Howe cautioned against banks committing to developing a new app for a new platform, such as the iPad, and instead suggests optimizing Web sites for tablet computers.
"The problem is banks can't support (a large number) platforms and devices," he said, adding that the more sophisticated browsers on tablet computers can essentially replicate the Web banking experience on a PC. "On the web that's actually dealt with pretty well. Good web sites support 8,000 to 10,000 different devices."
Stepping back to look at priorities in online banking, Howe said, mobile is the obvious starting place for banks.
"The thing about mobile is everybody has one," he said. "The priority list is probably mobile first, and then PCs. Then you can think about other stuff."
A Touching User Experience
One area where where the iPad and tablet computers could change the user experience is through the very nature of their interface. Because most functions are controlled by touch, Knapp sees an opportunity to rethink app design in a way that makes customers feel more connected to each transaction.
"Literally you can kind of touch your money as it moves," he said.
Knapp cautioned that banks not simply develop new apps for the sake of being cool, however, but believes that while many users will be satisfied with touch-centric Web design, native apps have the advantage of becoming absorbed in the general ecosystem of an always-connected tablet device, which brings the potential of increased transactions.
"Touch banking via the iPad or other devices means there's another opportunity to support mobile banking services that would manifest themselves in this new channel," he said. "What we invest a lot in is understanding the capabilities that are out there, developing those concepts and capabilities and testing them with different users and businesses."
While Howe emphasized that building native apps for the iPad isn't necessarily a priority, he does look at the device as having a transformative quality in terms of user experience. Where using a mouse is an acquired skill, being able to touch and interact with the screen itself is highly intuitive.
"That is profound," he added. "It's a real difference. The web stuff, no change is really necessary for a lot of it. What I think it does change, is how we use devices at home."
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