Newest iPhones Provide Opportunity for Banking

Is the banking industry prepared for another wave of innovation in response to Apple's introduction of the iPhone 6s and 6s Plus? We asked several industry pundits for their take on the latest announcements from Apple.

By Jim Marous, Co-Publisher of The Financial Brand and Publisher of the Digital Banking Report

If you weren’t able to sit through the latest 2-hour Apple new product presentation, it’s understandable. It’s usually easier just to read the reviews that start to appear only minutes after Tim Cook leaves the stage and the auditorium clears.

In a nutshell, as many had predicted, there were sales recaps and customer satisfaction ratings, new fashion and app partnerships for the Apple Watch, a huge 12.9″ iPad Pro (along with Apple Pencil), some exciting enhancements to Apple TV, and details about the upcoming iOS9 upgrade. But most in the audience, and any banker listening to the simulcast, were most interested in the new Apple iPhone 6s and 6s Plus.

While the look of the new phones are similar to the last-generation iPhone 6, the ‘s’ versions were redesigned with better specs and a more complex ‘3D touch’ interface. 3D Touch enables the phone user to expand functionality of their phone by moving their finger up and down, left and right, and by applying more pressure.

When the user presses a little harder in their 6s or 6s Plus, they get what’s called ‘Peek’– a pop-up of the contents of an email, the status of a flight, or a quick way get directions when tapping on a map. If the user presses harder, they move to the ‘Pop’ stage. This enables the user to move to a new place in the operating system. The user can also press the icons on the home screen, jumping to some applications without opening the iPhone app.

 Apple-Driven Banking Innovation Opportunities

In the past, the banking industry has moved in sync (with varying degrees of delay) with smartphone technology upgrades. From leveraging the camera OCR functionality for depositing checks, opening new accounts and paying bills to improving security with the Apple Touch ID capability, banking has benefitted from the innovations of the smartphone industry.

So how can the banking industry leverage some of the enhancements to the new iPhone 6s? More specifically, how can banks and credit unions enhance the customer experience with the improved Touch ID, 3D Touch and the enhancements to the camera on the iPhone 6s and iPhone 6s Plus?

We asked some of the leaders in global fintech for their opinions.

Cherian Abraham
Mobile commerce and payments lead at Experian Global Consulting.

“I see 3D Touch – the ‘Peek and Pop’ gestures enabling opportunity for more convenience and UX in banking apps. These new interactions can reduce friction, and bring to the surface features that were previously inaccessible for consumers – or simply difficult to understand and use. The challenge for banks will be to embrace these new interactions as quickly as have others (e.g. Facebook) and decide on what features make the most sense.

The stated hardware improvements to TouchID 2.0, along with the iOS9 additions, are expected to drive a balance between security and convenience. And Apple seems to be very clear about its direction in relation to the whole debate between mobile web and apps – with no browser on watchOS or tvOS. 3D Touch and deep linking between apps drive a far smoother experience for the consumer compared to the clunky web. That’s a lesson for banks who still can’t make up their mind between web and apps.

The larger impact may be that Apple is now in device financing. Through their partnership with Citizens, they are now in lending. That’s a bigger news item than all.”

To read all of the analysis from our global fintech panel, continue here ...