The CMA’s announcement represents a milestone in the changing face of online banking as the regulator recognises the increasing value of mobile phones, applications and other digital technologies to UK consumers.
At AppDynamics, the majority of the UK’s leading established retail banks have been partnering with us over the last two years to ensure that their apps can be relied upon by their customers, and so we welcome this announcement.
It’s now clear that consumer attitudes towards their finances have changed in line with the pace of tech innovation. Customers are becoming increasingly comfortable with using their smartphone as the primary channel to manage their finances, which calls into the question the relevance of traditional bank branches.
Voice activated technology, used in line with predictive AI such as Siri or Cortana, has paved the way for easy digital engagement with all generations of customers, while fingerprint authentication ensure users’ finances are secure.
However, it is the new wave of digital-only banks such as Atom and Mondo that have led the charge with these offerings.
Challenger banks are aggregating finances as part of a simple-to-use interface that updates customers on their spending habits.
Traditional banks have innovated in response, with Barclays having launched a payment bracelet in partnership with Topshop that can connect to your mobile and inform it of any spending updates.
The CMA ruling will ensure this information will be delivered reliably and intuitively. Plus, it will further promote the need for retail banks to ensure flawless performance of their applications, associated APIs and digital technologies, as any glitch will impact customer experience and trust.
The directive encourages the use of a wider range of technologies through the use of a shared data pool. This enables banks to streamline their customers banking journeys, making online banking increasingly seamless and convenient.
The CMA’s verdict that banks’ current digital offering doesn’t encourage competition demonstrates the banks are not doing enough to offer their customers a comprehensive service.
In order to lead the market, banks must have an effective digital strategy, that focuses on the changing needs of their customers and then harnesses emerging technologies to deliver intuitive, digital banking experiences.
John Rakowski is the director of technology strategy at AppDynamics.