Statistics suggest the presence and use of wearables for banking is growing. By Robb Gaynor
Apple, once again, is redefining a technology and a new channel: wearables. Watches and glasses are the first real incarnations of wearable technologies. And the watch is driving innovation right now with Apple in the driver’s seat. Depending on which statistics you believe, Apple has sold well in excess of two million watches. Some estimates are as high as 3.5 million units. That is more than double any other smart watch manufacturer, so Apple has in months attained a leadership position. There are over 3,000 watch apps and 50 watch banking apps in the Apple App Store today. That includes apps from domestic and international banks, credit card companies and stock brokers. The actual count of apps from domestic retail banks and credit unions is probably around 20. On launch day, there were only 10. Our internal projections are that the number of watch banking apps will grow exponentially in the next 12 months. The functionality is basic: Check a balance, see history, locate a branch. And end-users do not log in. They see balances securely right away, without a standard log in, because the smart watch and the iPhone it communicates through can be identified—and only data is displayed. We also project that consumers will become more and more engaged with watch banking, that usage will increase as people get used to checking their wrist for a balance or a text. And it's clear that watch apps are getting better. Updates are already hitting the App Store. New features like paying a bill or transferring money are being added. Businesses are getting involved too, as they will be able to approve ACH payments and wire transfers via watch banking. This requires more security, so logging in has to be solved for in V2 as well. Expanding alerts and notifications will be key in V2. By next year, 30 to 40 percent of financial institutions with a mobile banking app will offer watch banking, according to our projections. The penetration will be so high because of the easy implementation model: Just extend your current iPhone mobile banking app. Watch banking will be blended with the other self-service channels to create a seamless experience for end-users. How long can you “watch” watch apps, when they have a clear place in any credit union’s digital strategy?
Robb Gaynor is chief product officer at Austin, Texas-based Malauzai Software. For a different perspective, read "Your CU Doesn't Need an Apple Watch App." Talk tech trends with your peers and expert presenters when you attend CUES School of IT Leadership, Sept. 15-17 in San Antonio. Become more expert in applying innovation theory to your shop when you attend Strategic Innovation Institute I, slated for Sept. 20-25 at MIT. Participating will also prepare you to attend Strategic Innovation Institute II next year at Stanford University.
