White Paper Banking on the Tablet Channel
Banking on the Tablet Channel Industry estimates forecast that almost half of the U.S. Internet population will be using tablets by year-end. Tablets, with attributes of both PCs and smartphones, are growing in popularity as a way for consumers to access the Internet for a host of activities, including financial services. To capitalize on the way consumers use the unique attributes of tablets, financial institutions should consider tablet banking as a new, distinct channel. By optimizing tablet banking delivery with touch screen navigation, application (app)-driven functionality and enhanced graphics, financial institutions will be positioned to provide existing customers with an engaging way to bank from anywhere, at any time and also attract new segments that prefer the tablet to the PC for accessing accounts, managing finances and making transactions. Simply defined, tablets are general-purpose portable computing devices contained in a single panel that make use of a touch screen as the input device. Tablets come in many varieties and sizes including: the Apple ipad and ipad mini, Amazon s Kindle Fire e-reader and Samsung s Galaxy Tab among others. To optimize the tablet channel, financial institutions need to align tablet banking to support the unique ways consumers prefer to use the devices. Instead of just enabling consumers to access a financial institution s online or mobile banking website designed for PC or smartphone users, tablet-specific banking apps should provide a rich experience that leverages touch navigation and makes use of the larger display than that provided on smartphones. To accelerate support of the tablet channel, financial institutions should consider relying on an experienced technology provider for app development and comprehensive tablet banking deployment. Partnering with such a provider will also help financial institutions stay abreast of new devices and operating systems. Tablets Have a Unique Set of Attributes Tablets combine attributes of many Internet-enabled devices: spacious screen displays akin to PCs, the always-on mobile connectivity of the smartphone and the touch screen navigation of the latest e-readers. It is the combination of these attributes, in addition to the prevalence of tablet apps that have inspired consumers to use tablets differently than other devices. Beyond browser-accessed online banking and apps designed for diminutive smartphone screens, it s time for financial institutions to provide an option designed specifically for the tablet channel. The different attributes of the tablet channel shape the kinds of activities that consumers will prefer on the tablet. For example, the tablet lends 1
itself to visual presentations of data, such as charts and graphs and the manipulation of that data with taps, swipes and pinches. Tablet Use is Mainstream and Expected to Grow Use of the tablet channel is becoming mainstream. In a June 2012 publication, the research consulting firm, Frank N. Magid Associates, reported that an estimated 31 percent of the U.S. Internet population, approximately 74 million consumers, use tablets for an average of two hours per day. This figure is expected to reach 117 million, equivalent to 47 percent of the U.S. Internet population, in 2013. The firm has also predicted that tablet sales will overtake PC sales by 2016. Tablets: Portable, Personal and Social Not surprisingly, convenience and portability are the main reasons consumers buy tablets. Tablets are also much more engaging than most PCs because of the touch screen. A mouse and keyboard are very impersonal and disconnected in comparison to using fingers to manipulate the screen. The tactical encounters consumers have using apps on their tablets seems to create a more interactive and personal experience than the PC and even the smartphone. It s no wonder that in response to the tablet success of Apple and other competitors, that Microsoft has been compelled to design Windows 8 for touch screen PCs. The portability and display capabilities enable consumers to approach tablet use in a lean back and more relaxed posture, instead of sitting at a desk or table. Because the display capabilities support larger images than smartphones, consumers find it appealing to lean back and use their tablets to browse and interact. Tablets are less intrusive and more discreet to use in public than laptops, facilitating access to a full range of information and transactions. This enables consumers to get an enhanced view of online content anywhere and at any time, instead of being relegated to the viewing limitations of smaller smartphone screens. In addition to taking their tablets on the go, findings from Gartner s Early Tablet Adopters study reveals that tablets have the potential to play a more dominant role in homes than smartphones. In keeping with the lean back posture, consumers are using their tablets in living rooms (87 percent), bedrooms (65 percent) and kitchens (47 percent). Tablets Used for Financial Services While owners access a broad range of media content and information on their tablets, consumers are also using the devices to access online financial services and transact. According to the Fiserv 2012 Consumer Trends Survey, almost half of tablet owners have used their tablets to access their financial institution s online banking service and almost two-thirds of those yet to access online banking from their tablets wish to do so in the future (see Figure 1). 2
Figure 1: Have you accessed Online Banking with your Tablet? Would you like to access Online Banking with your Tablet? Two Must Haves for Tablet Channel Support When planning strategies for the tablet channel financial institutions must consider the same driving forces that should govern all channel development: Information Convergence: Since consumers access banking information and transact using multiple channels, they expect information to be accurate, upto-date and consistent across all channels, at all times Interaction Specialization: There are reasons why consumers use different devices or channels to access their financial information and make transactions; consumer preferences using particular channels to conduct specific banking activities are influenced by the unique attributes of that channel Source: Consumer Trends Survey, Fiserv, Inc. 2012 It is important for financial institutions to recognize that support for the tablet channel will enhance the dynamics of online banking. This enables consumers to view account and transaction data holistically anywhere and at any time, instead of being relegated to the viewing limitations of smaller smartphone screens. Knowing where, how and why consumers use their tablets will provide financial institutions with insight into how to design and develop the right user experience for tablet banking. Using engaging graphics and interactivity, financial institutions will build a tablet channel experience that encourages customers to spend more time with financial management tools and encourage them to be more likely to browse their financial institution websites for additional products. Information convergence and interaction specialization apply to all channels. Therefore, consumers will expect the same data that is available through their online or mobile banking platform to be available through the tablet banking platform. However, tablet banking consumers will expect that tablet banking will utilize touch screen features and take advantage of the screen size to provide information graphically. This will enable customers to interact and transact in the best way possible on every channel they choose branch, call center, ATM, mobile, online and tablet based on the unique attributes of the access device or location. The Components of Tablet Channel Specialization Keeping the priorities of information convergence and interaction specialization in mind, financial institutions need to make an investment in the tablet channel to optimize the customer experience. The existing mobile and online banking features and functionality will not create the optimal user experience of the tablet channel. 3
This does not mean that the tablet experience should be conceived independently of a financial institution s existing channels and assets. On the contrary, while the tablet experience needs to be tablet-specific, it should be coherent with the user experience across other channels, in particular, digital ones. According to Fiserv primary user research about consumers tablet expectations, tablet banking should support: Device Proliferation Although ipads account for half of all tablets, there are many other makes and models and operating systems (see Figure 2). Financial institutions need to support what is out there now and be prepared to support more as new devices become popular, for example, Microsoft Surface a hybrid laptop with a touchscreen and a cover that detaches, turns and reattaches as a keyboard. Figure 2: Tablet Device Types Gestural and tactile navigation and input, using fingers to drag, slide and swipe the screen Visual representation of information and transactions using interactive graphics to facilitate budgeting and personal financial management Interactive tools, including calculators and calendars Financial institutions that deliver an app-driven tablet banking user experience will be able to fulfill these consumer expectations and will encourage higher levels of adoption and consumer satisfaction. Expert Navigation of ipad versus Android and App versus Browser Financial institutions should be prepared for the challenges they will face as they build a strategy for tablet banking. To accelerate strategy development and deployment of full tablet banking functionality, financial institutions should consider partnering with a technology provider that is well-versed in the design of solutions for all banking channels. Such a partner will guide financial institutions in ways to address the following concerns related to tablet channel development: Source: A Portrait of Today s Tablet User Wave II, June 2012, Online Publishers Association (OPA) and Frank N. Magid Associates Operating System (OS) Upgrades Similar to mobile devices, tablet operating systems are subject to frequent upgrades. Financial institutions will need robust enterprise processes to maintain compatibility with each OS version. Multiple Technologies There is no standard for tablet technology (although HTML5 has often been touted as one); banks will need to follow an adaptive architecture model, using the technology that works best for a specific feature/functionality. For example, using native code to enable image capture/video functionality and using more traditional Web technologies for the display of account balances. 4
Data Integration Figure 3: Behind the Tablet Interface Financial institutions must be able to integrate core systems with various channels to ensure the same data is available across applications and updates in real time. Functional/Content Aggregation Tablet banking must bring together all functionality, account and institutional information together into a seamless user experience. Coherence with Mobile and Online While tablet experiences should be different than mobile or online, consideration must be given to how the experiences across digital devices will be coherent and intuitive for customers. User Experience (UX) and Interfaces (UI) Customers expect tablet-specific design aesthetics and gesture-based navigation that optimize the native capabilities of the devices. Platform Services Financial institutions need to consider everything behind the UI and UX (see Figure 3). This includes customer care and enrollment, risk and security and reporting and analytics. This requires establishing processes and policies for the channel. For example, how are first-time digital bankers with no digital credentials enrolled and supported? How is security and privacy handled within tablet banking and across channels? What reporting is needed? All of these are questions financial institutions will need to answer. Source: Fiserv, Inc. Getting It Just Right Will Help Drive Greater ROI The time and effort financial institutions put into building a specialized user experience for tablet banking will pay significant dividends. Similar to mobile banking, there are a few key elements that will drive tablet banking return on investment (ROI). Higher Customer Retention As reported by Javelin Strategy & Research, tablet owners are more engaged with and use their tablet for banking more frequently than non-tablet owners, helping to increase brand interaction and loyalty. Lower Channel Costs Tablet banking assists in the migration of customers from high-cost offline channels, such as the call center and branch, to a lower cost channel. 5
Expanded Customer Base Tablet banking presents an opportunity to attract new business from distinct and often new consumer segments. Increased Profitability Tablet users are accustomed to using their devices to make purchases and may be likely to respond to ads and offers using their tablets. Delivering compelling financial outcomes from tablet banking starts by offering foundational services, but it doesn t stop there. According to the Fiserv 2012 Consumers Trends Survey, consumers are looking for the tablet channel to be fully functional (see Figure 4). Figure 4: What features of tablet banking did you use or do you desire to use? The better the user experience and the more functionality a financial institution offers, the more likely customers are to adopt and use tablet banking. It s simple math the more customers and transactions that a financial institution can shift to digital channels, the higher the potential ROI. Bank on the Tablet Channel The tablet channel is already established and it s here to stay. It is likely that tablets will continue to complement smartphones and PCs, and that eventually, tablets will outsell PCs to become the entry device for home computing. Use of touchscreens to consume information and transact will become the rule. As tablet use grows to replace PC use, financial institutions will face increasing pressure from consumers to offer a tablet banking service with the full suite of online banking functionality, optimized with gesture interaction and graphical displays for the tablet experience. To solidify a tablet channel strategy, financial institutions should: Treat tablet as a distinct channel tablet banking is a distinct channel that should supplement online and mobile banking, however, access to tablet banking should be app-driven to leverage all of the channel s attributes Offer a unique user experience tablet banking lends itself to graphical depictions of data and gestural interactivity, users will expect this device-specific functionality to make use of all attributes of the tablet s unique set of attributes Source: Consumer Trends Survey, Fiserv, Inc. 2012 6
Consider platform and technology the tablet channel must be seamlessly integrated with all other channels to support information access and management reporting; in addition, channel-specific processes and policies for authentication, security and customer care needs to be supported By considering these tablet strategy components, financial institutions can respond to the growing trend of tablet banking. Delivering an app-driven, fully-functional tablet experience that complements all channels will lead to happier customers, more customers and sustained financial institution performance. About Fiserv Fiserv is driving innovation in Payments, Processing Services, Risk & Compliance, Customer & Channel Management and Insights & Optimization, and leading the transformation of financial services technology to help our clients change the way financial services are delivered. Visit www.fiserv.com for a look at what s next, right now. 7
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