Nearly everyone I know has a bank account, and most people own a smartphone – and those brave enough use their smartphones to access their bank accounts! Banking apps have become an important part of everyday banking, revolutionizing the way customers interact with their banks. In a recent article on ZDnet.com, the author describes how banking apps are so important nowadays that they may become the decisive factor for a consumer of which bank to choose. Just like Carson Woo said in his lecture about Business Technology Management, these apps have become a way by which BTM can work together with, say, marketing, to improve sales.
From my own experience, banking apps vary greatly in content. My bank in Denmark – Danske Bank – has one of the most innovative and award-winning banking apps available (for free) that allows customers to
- access chequing, savings, securities and custody accounts with all transactions of the previous two years
- pay bills electronically
- transfers to Denmark and abroad
- convert currencies
- contact the bank directly
- find ATMs and nearby branches
- buy/sell stocks and securities, as well as access market data
Such an extensive banking app may well be expensive in development but proves to be a great competitive advantage for the bank. Just like the author of the article states:
“it can be the little things, including the ability to add new billers and payees directly through a smartphone…”
These may lead to customers switching banks. For example, the banking app of CIBC in Canada is – from my own experience – not even close to what Danske Bank offers its customers. CIBC limits the app to accessing account transactions; their banking app has thus definitely potential for improvement.
