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Optima mobile banking_app_review_2018

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Optima mobile banking_app_review_2018

  1. 1. MOBILE BANKING APP REVIEW 2018 A comprehensive benchmark study of UK mobile banking apps In partnership with
  2. 2. Optima Consultancy | Mobile Banking App Review 2018 p. 1 CONTENTS 1  INTRODUCTION__________________________________________________ 2  2  ABOUT THE STUDY_______________________________________________ 3  3  EXECUTIVE SUMMARY ___________________________________________ 4  4  KEEPING UP APPEARANCES _____________________________________ 7  5  RAISING THE BAR _______________________________________________23  6  LEADING THE WAY______________________________________________35  7  LOOKING AHEAD _______________________________________________42  8  METHODOLOGY_________________________________________________44  9  FURTHER INFORMATION _______________________________________46  10  FEATURES _______________________________________________________47  11  TABLE OF FIGURES ______________________________________________53 
  3. 3. Optima Consultancy | Mobile Banking App Review 2018 p. 2 1 INTRODUCTION Our first edition of the Optima Mobile Banking App Review 2018 is brought to you in partnership with Visa, a global leader in payments technology who connect consumers, business and financial institutions in more than 200 countries, whilst developing innovative solutions for market. Dear Reader, We're delighted to lend our support to Optima's comprehensive study into the UK mobile banking app landscape in 2018. It provides a great insight into the evolving ecosystem and valuable lessons for both established and new players. Consumers are demanding better access to and control of their finances. They now expect a range of features as standard within their banking app. From geo-location to real-time alerts to spending controls, technology is making it easier than ever for consumers to understand and manage their funds - with the added benefits of earlier fraud detection and simplified communication with their banks. At Visa we are open for all players to leverage the power of our global network - with its brand, resilience and reach. We are continually investing in our network enabling our clients open access to an enhanced, and continually evolving, set of products, capabilities and services. These not only provide an array of ways to pay and be paid, but also enable our clients to give their customers the best possible user experience and provide value added services that drive primacy, customer retention, acquisition and greater lifetime value. To enable our clients to access many of these capabilities and services through our open network, we have created the Visa Developer Platform (VDP) to facilitate clients to enhance what they have today or build from scratch as well as offering fully customisable APIs and SDKs that can dramatically simplify and speed up their integration into our clients' infrastructure. Our commitment is to be the most responsive and supportive network for both emerging payment businesses and our long-term partners. For further information on this study or more inspiration on how our partners can leverage Visa products, services and APIs to create innovative experiences, visit the Visa developer portal at developer.visa.com or get in touch via customersupport@visa.com. Piers Clough Executive Director, Innovation Platforms
  4. 4. Optima Consultancy | Mobile Banking App Review 2018 p. 3 2 ABOUT THE STUDY Welcome to our inaugural mobile banking app study – the most comprehensive study of its kind. It is widely accepted that mobile apps are rapidly becoming the channel of banking customer relationships, certainly in the near-term before we are all embedded with some form of AI chipset! The demise of the UK’s branch network is frequently reported with the average customer expected to only visit a branch 4 times each year by 20221 as consumers turn to online and particularly mobile banking. With this trend, banks are finally starting to recognise the importance of delivering enhanced functionality above that of basic balance and transaction history, enabling customers to fully service their accounts via their smartphones. To stay relevant to customers, providers need to deliver useful and usable mobile banking services that not only exceed customers' current expectations but also anticipate their future needs and improve their financial well- being. This study’s underlying motivation is to track and measure digital transformation in UK banking and understand how innovations in technology are being utilised by providers to present a more exciting and seamless banking experience for customers, as well as acting as a barometer for market success. It provides a realistic assessment of the UK mobile banking app landscape by scoring and ranking apps based on quantitative data, user testing and overall evaluation of mobile apps. This includes an assessment of the customers’ ability to open an account, manage their account, make payments, interact with their bank and manage their day-to-day spending. The findings highlight the widening gap between incumbent providers and new challengers, laying out best practice and delivering lessons learned along the way. We welcome your feedback and hope you take some insight from our findings. Enjoy! The study includes;  Data from 100 UK mobile banking and payments apps from 52 different providers.  Apps published on both iOS and Android operating systems.  A host of primary research findings, obtained through extensive user testing to expose the feature sets and usability of the most popular apps.  Extensive reporting and tracking of trends, rankings, ratings and features.  Focus on key features pertinent to the regulatory and technological change. Mark O’Keefe | Founder, Optima Consultancy | June 2018 1 https://www.finextra.com/newsarticle/30756/branch-visits-face-steep-decline-as-mobile-banking-takes-hold Customers are using our digital channels at an unprecedented rate and increasingly digital no longer means online, it’s all about mobile.
  5. 5. Optima Consultancy | Mobile Banking App Review 2018 p. 4 3 EXECUTIVE SUMMARY Mobile banking apps have moved beyond being a digital statement. Providers are making it easier for customers to squeeze routine banking activities into busy lives which has led to a corresponding steep decline in branch visits. Banks have had to adjust to this new reality or risk becoming pushed out by new mobile- only challenger banks and fintechs. Providers must invest in both iOS and Android operating systems to succeed in a competitive market and those that don’t become disadvantaged. Furthermore, from 15th August this year, service levels will be exposed by new requirements introduced by the Financial Conduct Authority (FCA)2 whereby banks must publish specific information about personal current accounts including how quickly new customers can access internet banking, as well as the kinds of services a customer has access to via the mobile banking channel. This level of transparency is likely to further expose weaknesses and allow customers to better understand the differences in service levels offered by UK banking providers. The app is poised to be the ultimate battleground for customer acquisition. 2 https://www.fca.org.uk/news/press-releases/fca-makes-it-easier-people- compare-bank-accounts Managing app store ratings is becoming more of an art than a science. This is evidenced by the fact that no single app has managed to maintain a 5-star rating for longer than a quarter and most never attain 5-stars at all. This demonstrates the rate at which the market is moving; standing still is not an option. Providers must continually be innovating and driving their mobile strategy forward by frequently updating apps, releasing new features and functionality ahead of competitors, whilst ensuring that customer expectations are met by including those features that are now considered hygiene factors by users, such as biometrics. New entrants are raising the bar. In a faster moving market, existing players need to match scale with speed, which is making it harder to stay competitive. New players tend to have shorter release times, update more frequently and consistently act and respond to customer feedback by adding features customers love such as real-time balances and transaction notifications. These are starting to become something customers expect from their bank which exposes incumbents’ limitations and highlights some of the infrastructure and legacy constraints of larger players. In trying to overcome legacy constraints some incumbents are launching entirely new apps App functionality is becoming a key differentiator Providers are unable to maintain a 5-star rating for more than a quarter
  6. 6. Optima Consultancy | Mobile Banking App Review 2018 p. 5 on new platforms. This poses its own challenges – getting customers to migrate! And where users are forced to do so, they are not always happy about it! Digital growth isn’t slowing down. Many providers are continuing to move through app download bandings demonstrating that mobile banking is yet to reach full penetration. Our study highlights this evolution – but of course, installs do not necessarily translate to active users and so we also cover customer engagement within apps. Account opening is a clear differentiator. This reflects the true disparity between incumbent current account providers and new players. Incumbents rely on desktop and browser-based application processes, compared to challenger banks whose process is entirely within the mobile app. The biggest pain point however, is the time it takes for a customer to have a fully functioning account. A card, PIN and access to internet and mobile banking, ranged from 5 minutes to 14 days. Current account switching has so far been slow, with CASS reporting only 1 million current account switches a year and only 4.7 million switches since the service launched in 20133 , therefore this disparity has not yet been fully exposed. As customers become more aware of the benefits of moving 3 Current Account Switch Service Dashboard, www.bacs.co.uk/factsandfigures 25 April 2018 provider and the ease of account opening, switching is likely to draw customers to the players with a better digital experience. Innovative app features are quickly becoming hygiene factors. Last year challenger banks such as Monzo and Starling Bank were praised for their innovative “freeze and unfreeze” card feature which gives users the ability to control their card directly from within the app. Today 43% of current account apps offer this feature. The challengers are leading the way and in some cases the incumbents are quickly hot on their heels. Those that don’t follow start to look old and dated. We expect to see a rise in focus on money management driven in part by changes brought about by open banking. Customers increasingly expect help and tools to assist with personal financial management and naturally, banks are well placed to support this. It is likely however, that this further exposes the legacy constraints experienced by the incumbents and we’re likely to see more partnerships with third parties to help service their customers with these tools. Business apps are … not the business. We see many providers neglecting their business apps and, in some cases, choosing to combine business accounts into the Account opening with a fully functioning product varied from 5 minutes to 14 days We’re going to see incumbents seek out fintechs to help them service customers with financial management tools “…features such as real time balances show up where incumbents have legacy constraints
  7. 7. Optima Consultancy | Mobile Banking App Review 2018 p. 6 same app as consumer current accounts. Whilst this may be logical, in principle, banks may be failing to appreciate that business banking is an entirely different activity. Businesses want to have multiple user log-ins and current account apps often don’t support this functionality. Alongside many others, Starling Bank have now joined the fray and incumbent banks risk having another slice of their business exposed, thereby losing an important group of dedicated customers. By not investing and allowing their business apps to age, incumbents have potentially opened themselves up to competitors with more attractive digital propositions. Credit where credit is due. Credit card mobile apps are performing well in our study. This may reflect the fact that a customer’s needs for managing a credit card are fewer than that of a current account, but credit card providers are successful at serving these needs, or at the very least customers are satisfied with their app. And the winner is… After hundreds of man hours of research and user testing over the last two-and-a- half years, we have arrived at who we think tops the charts for their mobile current account app in the UK. The speed of change is phenomenal however, and no sooner have we committed this to paper we may find new services or features displace the champion. Anyway, we won’t spoil the surprise but let you find out who topped the chart and why inside…
  8. 8. Optima Consultancy | Mobile Banking App Review 2018 p. 7 4 KEEPING UP APPEARANCES 4.1 Customer and digital take-up Mobile banking has been growing exponentially with UK banks increasingly focusing on their digital propositions driven both by changes in customer behaviour and cost savings. The latest in a raft of bank closures came from Lloyds Banking Group (LBG) closing a further 49 bank branches as part of a three-year programme to close a total of 4004 . LBG reported the reason for the continued branch closure programme as being the fact that “customers are moving to digital and mobile channels for their everyday banking needs”5 . Figure 1 from their strategic review update conveys a clear correlation between increasing digital interactions and a fall in branch visits. In what is becoming a clear industry trend, 2017 saw further UK branch closures announced including 117 from HSBC, 240 from RBS and 67 from Barclays6 . Meanwhile over the last five years, consumer use of banking apps increased 356%7 . This correlates with several banks reaching higher download tiers on Android devices indicating widespread consumer adoption at the major banks (Figure 2). 4 Lloyds Banking Group, Strategic Update (Q1 2018) 5 Lloyds Banking Group, Strategic Update (Q1 2018) 6 MagnaCarta in Picking Winners: Determining Digital Success in Digital Finance, Fintech Disruptors Report 2018 It can be argued the UK public has reached a tipping point in feeling safe conducting financial transactions via their mobile device. Recent data from Money Supermarket showed when selecting a bank, over half of brits consider digital services to be a major factor when opening an account, rising among millennials to 71% (25-34)8 . This shift in consumer behaviour has helped new mobile-only and digital players to enter the banking and payments space, creating a new competitive landscape that is likely to get more populated as Open Banking builds momentum. 7 Business Insider http://uk.businessinsider.com/mobile-banking-is-on-the- rise-in-the-uk-2017-6 8 Money Supermarket https://www.moneysupermarket.com/current- accounts/digital-banking/ Figure 1: LBG customer channel interactions 2014 - 2017 Customers are moving to digital and mobile channels for their everyday banking needs
  9. 9. Optima Consultancy | Mobile Banking App Review 2018 p. 8 4.2 The rise of digital only banks Digital banks are increasingly on a par with established providers and quickly gaining momentum through their alignment with consumer needs. For example, mobile-only bank Monzo, renowned for their transparency and customer engagement, recently announced 568,000 current account customers since launching these accounts in October last year – representing a migration of 95% of Monzo’s prepaid card holders9 . Likewise, account information service provider (AISP) Yolt hit 100,000 UK users in less than six months10 and in April 2018 announced 250,000 users – gaining another 150,000 users in just four months11 . Revolut started out as a currency exchange app who now offers personal banking and is said to have 1.7 million customers across Europe12 . The speed at which these new players have reached these customer 9 http://www.cityam.com/283310/monzo-breathes-sigh-relief-vast- majority-active-users 10 https://www.finextra.com/pressarticle/71789/money-app-yolt-hits- 100000-uk-users-in-less-than-six-months 11 https://www.finextra.com/pressarticle/73461/yolt-hits-250000-user- mark milestones is impressive (Figure 3), especially when compared to the digital milestones discussed prior for incumbents. Figure 3: Minimum Android downloads, selected challenger brands 1m 500k 100k Competition is certainly heating up and it seems everyone is claiming to be the best. Mobile-only challenger bank Starling recently displaced incumbent First Direct as “best current account provider” in the British Bank Awards 201813 . Impressively, Starling Bank also pipped them to the post for “best customer service” – a title which First Direct held the prior year but also since 2010 with the Money Saving Expert customer service poll14 . This is a real sign of customer behaviour change – customers are most happy engaging via their smartphone and prefer not to phone customer service centres. 12 https://news.sky.com/story/revolut-is-uks-first-digital-bank-unicorn- 11347255, April 2018 13 http://www.britishbankawards.co.uk/previous-winners 14 https://www.moneysavingexpert.com/news/banking/2018/03/first- direct-tops-our-banking-customer-service-poll-again---check-how-well- your-bank-did- Figure 2: Android minimum downloads for selected UK banks Q2 2016 Q4 2016 Q3 2017 Q4 2017 Q1 2018 1m 5m 5m 500k1m
  10. 10. Optima Consultancy | Mobile Banking App Review 2018 p. 9 That said, NatWest maintained their banking app crown in the BBA awards, despite LBG claiming to be number one digital UK bank in another study.15 4.3 The best app So, what determines the “best” app? Mobile banking apps are increasingly becoming the face of the relationship between customer and bank. It is common for customers to state during app reviews that they are willing to leave a bank when their mobile app functionality is poor. App user reviews and ratings are therefore a good marker for an apps’ overall performance and one of the primary measures by which operating systems rank apps in their stores. Apple and Android dominate the UK smartphone market - market share currently stands at iOS 53% and Android 45%16 – therefore this review focuses equally on these two operating systems and their app stores. Both stores convey certain sets of data such as app store rating, date of last update and number of reviews. We tracked this data over two and a half years and have found there can be some significant differences in an app’s performance across operating systems. 15 Lloyds Banking Group, Strategic Update, 2018 16 https://www.statista.com/statistics/271195/apple-ios-market-share-in- the-united-kingdom-uk/ and 4.4 App store ratings Not only do people need to use mobile banking for everyday activities, replacing a call or a trip to a branch – they need to enjoy the experience. Those with the higher user ratings are the app providers with a consistently high user rating across both iOS and Android (Figure 5). Those with disparate ratings across stores are performing weaker overall which emphasises the importance of investing in both operating systems and delivering consistent customer experience. The most significant disparity in rating across operating system arises in the current account apps of incumbent banking providers (Figure 6). Lloyds Banking Group, Barclays and RBS are performing consistently. However, HSBC Group (HSBC, First Direct and M&S) are getting significantly higher ratings on iOS than their Android equivalents. Santander, on the other hand, has a stronger app for Android with a difference in rating of 2 stars. https://www.statista.com/statistics/271240/android-market-share-in-the- united-kingdom-uk/ Mobile banking apps are increasingly becoming the face of the relationship between customer and bank Figure 4: British Bank Awards 2018 winners
  11. 11. Optima Consultancy | Mobile Banking App Review 2018 p. 10 0 1 2 3 4 5 Android iOS Figure 6: App store rating for selected apps by operating system | 2018 Q1 1 2 3 4 I’m really   disappointed there’s no  fingerprint log in 1 2 3 4 No biometric log in on Android devices Nicer UX on iOS Fingerprint not available on all Android devices Technical issues on Android Technical issues across both operating systems Good but still lacking major features such as … edit/delete standing orders and direct debits and fingerprint log in Very basic  functionality… No touch ID Cash point print out  slip has more info  than   this app! Used to be good.  Recently nothing  works Source: Google Play  Store (April 2018) Source: Google Play  Store (April 2018) Source: iOS App Store  (April 2018) Source: iOS App  Store (April 2018) 0 1 2 3 4 5 Appstoreuserrating Android iOS Average Figure 5: App store user rating for all apps by operating system | 2018 Q1
  12. 12. Optima Consultancy | Mobile Banking App Review 2018 p. 11 4.5 Major movements The most significant finding to note is that attaining a 5-star rating is hard and arguably impossible for Android! No single app has reached it during the entire two- and-a-half-year study. Those that have managed to attain a 5-star rating for their iOS app have not been able to maintain it into the following quarter. B, a digital bank powered by National Australia Group, was the biggest mover on iOS improving significantly this quarter, from 2.5 to 4.5 stars. B have added several new elements to the app, including digital cheque imaging, alerts and personalisation features which may have impacted on user experience. B also had a 93% hike in reviews received from users. Santander had the biggest drop for iOS of 0.9 stars whilst for Android HSBC had the same 0.9 star drop. 4.6 Traditional providers It is also interesting to track how app ratings have evolved over time. First, let’s look at app user rating on Android and iOS devices for traditional players in the everyday banking space. We can see that apps from banks in the same banking groups perform similarly because in most cases the apps are identical, aside from branding. This isn’t the case for HSBC, First Direct and M&S who have fundamentally different app design and functionality. Lloyds Banking Group apps are performing consistently across both operating systems, showing slight increases in user rating on iOS, taking them to 4.6 out of 5 stars. Lloyds stated in their Q1 2018 results the ambition to be the number one UK digital +2 -0.9 -0.9 Figure 7: Largest current account app store rating change | 2018 Q1 vs 2017 Q4 0 1 2 3 4 5 Figure 8: Android app store rating for traditional players | 2015 Q4 to 2018 Q1 0 1 2 3 4 5 Figure 9: iOS app store rating for traditional players | 2015 Q4 to 2018 Q1
  13. 13. Optima Consultancy | Mobile Banking App Review 2018 p. 12 bank17 and their app ratings support good digital performance – although the differential is slight when compared to peers. Barclays also has a strong and stable performance. App ratings in the past three quarters have experienced more significant changes on iOS, which is likely to be a result of the iOS app store overhaul made in September 201718 which allowed developers to reset ratings on release of an updated version19 . RBS and NatWest ratings have been erratic on iOS (Figure 9); however, they have climbed since last quarter and seem to be on their way back up. TSB has had a huge fall from grace since launching a “new” app in Q4 2017, from 4 stars to 1.5, despite users being able to “log in with their eyes”20 . At the time of writing, we see significant press coverage of the troublesome migration off the LBG platform, but it is important to note that the customer rating of the app was prior to this. It will be interesting to watch how this plays out. HSBC also launched a new core mobile banking app, for the UK only, with “improved features and functionality” in October 2017 first on iOS and Android shortly after. They noted in their press release at the time a 20% increase in mobile banking users since 201621 . Conversely to TSB, the HSBC mobile app has been much better received, particularly by Apple users. HSBC’s overall rating improved 2-stars since launching the new app to 4.5. Perhaps even more impressively, they went up six places to be the number one ranked finance app, demonstrating the impact that download numbers can also have on store ratings. The new app has had much less of a reaction from Android users, which may have a lot to do with the fact HSBC are the only bank still not supporting biometric log in. First Direct have also had an impressive climb on iOS to 5 stars in Q4 2017, but they haven’t been able to quite maintain it into Q1 2018. 4.7 “Non-traditional” players The “non-traditional” benchmark group are made up of UK challenger banks, mobile only everyday banking providers and selected fintech providers. The average rating across both operating systems is higher for non-traditional players by ~0.5 stars. Traditional players have an average rating of 3.7, whilst non-traditional players22 have an average rating of 4.2, indicating that digital players’ apps are resonating with customers. 17 Lloyds Banking Group, Strategic Update, 2018 18 https://developer.apple.com/app-store/ratings-and-reviews/ 19 http://uk.businessinsider.com/new-app-store-features-changes-ios-11- 2017-7 20 https://www.which.co.uk/news/2017/09/biometric-banking-how-to-log- into-your-bank-account-with-your-eyes/ 21 HSBC Press Release 24 October 2017 22 Average rating of non-traditional providers with both iOS and Android apps 0 1 2 3 4 5 First Direct HSBC TSB Figure 10: iOS app store rating for selected apps | 2016 Q4 to 2018 Q1
  14. 14. Optima Consultancy | Mobile Banking App Review 2018 p. 13 Figure 11: Average app store rating for non traditional players | 2015 Q4 to 2018 Q1 This is not universal however, Tandem and Atom are poor performers across both operating systems. Fidor is the worst rated app tracked in the study on iOS (with no Android equivalent app) with very limited functionality. Their success in Germany and the rest of Europe does not appear to have continued into the UK. The app hasn’t been updated since 2016 which indicates a lack of investment or priority here. 4.8 iOS app store changes We have seen in Figure 9 the wider variations in iOS ratings during the last 6 months, this is largely to do with app store changes made by Apple. Apple launched a redesign of their app store (Figure 12) in Q4 2017 which saw some significant changes. Apple now provides app developers with the option to reset their reviews and ratings when an updated version is released. Apple discourages developers from resetting their metrics23 but despite this, in Q1 2018 a total of 28 apps (out of the 48 iOS apps tracked) reset their review totals which suggests many developers are certainly experimenting with their new autonomy. Whether this is a continuing trend will be one to watch! Significantly, Apple now allows developers to prompt users to leave reviews and ratings without leaving the app itself (three times in a 365-day period) and users can 23 https://developer.apple.com/app-store/ratings-and-reviews/ leave a star rating without a written review describing the reasons for their rating. This has removed some of the friction; customers can now express how they feel about an app much more easily and quickly. In some instances, apps in this quarter have seen a huge surge in the number of ratings left by users (Figure 13). Barclays had the largest number of reviews added, seeing a 1926%. This also suggests that these apps have better user engagement. 0 1 2 3 4 5 Figure 12: iOS App store changes
  15. 15. Optima Consultancy | Mobile Banking App Review 2018 p. 14 On Android devices we established how many reviews an app received per 1,000 downloads to assess engagement. In this instance, account information service provider Emma and fintech Revolut came out top, with two to five times the level of reviews. These apps have much fewer downloads than some of the large incumbent banking providers yet are gaining traction through users engaging with these brands. Amex and Co-op Bank lead the pack for the traditional players. 4.9 App updates Receiving feedback on app releases is an important aspect of development. It is abundantly clear from our experience and analysis, that challenger banks and fintechs have shorter development cycles than incumbent banks. Based on the number of updates recorded so far, we expect that TransferWise, Revolut and Emma will release one update every week in 2018 on average. The incumbent banks on the other hand in 2017, were releasing updates, on average, more like once every 6 weeks. However, if they continue to update at the same rate they have started to in the first quarter, most of the incumbents will have reduced their development time and significantly so for HSBC, TSB and Barclays. Figure 13: iOS average quarterly app store reviews added for selected apps | 2016 Q1 to 2017 Q3 vs 2017 Q4 onwards 0.2k 6.2k 0.3k 1.3k 0.2k 0.0k 2.4k 20k 39k 20k 7k 27k 8k 84k Capital One First Direct HSBC Lloyds Bank Nationwide Vanquis Barclays Q1 2016 to Q3 2017 Q4 2017 onwards 0 20 40 60 80 100 120 Figure 14: Android app store reviews per 1,000 downloads for selected apps | 2018 Q1
  16. 16. Optima Consultancy | Mobile Banking App Review 2018 p. 15 But is this improvement enough? To be developing and deploying updates at a median level last year, a provider needed to be releasing 12 updates a year and 19 updates to appear in the upper-quartile. In 2018, the pace of change has stepped up and 18 updates is the median position with one a fortnight (24 per annum) to be in the top 25%. Overall, across all participants in the study, the average number of updates released has increased 32% year on year. Lloyds Banking Group, in their most recent strategic update, discussed their plans to become more agile with over half of their change activity being delivered in less than 6 months, with monthly releases24 . Our data shows Lloyds have released just one app update in the first 3 months of 2018. Even if they release 12 updates in 2018, they will be in the bottom 25%. This is out of kilter with Lloyds proclamation and ambition to be the no.1 digital bank in the UK. In Figure 16, we can see that some providers are prioritising which operating system they update first. Most providers are updating their iOS and Android apps concurrently however, Lloyds Banking Group are updating their Android apps before their iOS, whilst B and N26 are prioritising iOS updates. Providers should be cognisant of this approach as users can become frustrated when one operating system isn’t able to make use of an app feature that is available on the other operating system e.g. HSBC and biometric log in. 24 Lloyds Banking Group, Strategic Update, 2018 p 31 * 2017 is annualised where 4 quarters were not available 0 10 20 30 40 50 60 2018 Q1 2018E 2017* 2018 Median 2018 Upper quartile Figure 15: iOS number of updates per year for selected apps | 2018 Q1 0 10 20 30 40 50 60 Android iOS Figure 16: Age in days of selected apps by operating system | 2018 Q1
  17. 17. Optima Consultancy | Mobile Banking App Review 2018 p. 16 4.10 Architecture According to the commentator Chris Skinner in a recent blog, “digital is a massive cultural, business and organisational transformation based upon a wholly new business model”25 . It is well recognised that incumbent banks face challenges in adapting to the speed of digital change. CGI found that 80% of big-bank decision- makers believe they have already done digital26 . While many banks have a digital strategy, few have embarked on a true digital business transformation. Legacy systems cannot handle customer’s needs. To keep up, incumbent banks have limited options, the only way to truly go digital is to rebuild the entire back end infrastructure. A recent example of this challenge is TSB who have built a new mobile app and 25 The Finanser https://thefinanser.com/2018/04/digital-banking-isnt-just-app.html/ 26 CGI in The Finanser https://thefinanser.com/2018/04/digital-banking-isnt-just-app.html/ 27 http://www.bbc.co.uk/news/business-43877667 28 Lafferty daily briefing 24th April 2018 platform. This is not easy or cheap and has been painstaking for TSB. In addition to the new mobile app, TSB migrated their core systems at the end of April 2018 which went so badly wrong it resulted in the bank’s CEO having to make a public apology to customers for their failings27 . Customers were locked out of accounts, shown incorrect balances and some displayed other people’s account numbers and sort codes in a data protection nightmare. TSB may lose out significantly from this incident as customers declare their intention, via social media, to end their ties with the high-street bank28 . Putting aside the core systems replacement, replacing an app completely presents an added challenge of getting customers to switch to the new one. We can see in Figure 18 less than 20% of users from the old TSB app have so far migrated by choice to the new one. HSBC who have created a specific UK version of their app, have also had very few customers proactively migrate. Their old mobile app had a minimum of 5 million downloads (albeit a global version), whilst their new app currently has approximately 100k downloads – only a small proportion of their user base has migrated in the 6 months post launch on Android, despite the app having “improved functionality and features”. Figure 17: BBC News reporting on TSB technical issues Banks are run by bankers, not by technologists, except the new digital banks need also to be technologists, otherwise they are just a bank, not a digital bank – The Finanser
  18. 18. Optima Consultancy | Mobile Banking App Review 2018 p. 17 4.11 Product categories This study primarily focuses on everyday banking mobile apps; however, it is worth comparing the performance of these against monoline apps designed to service a product segment such as business and credit. 4.11.1 Credit The best performing credit card apps on both Android and iOS for app store user rating are Amex and Barclaycard which have both performed consistently well throughout the study, with averages of 4.3 and 4.2 stars respectively. The poorest performing app is the Post Office with an average user rating of just 1.8. The app store reviews written by frustrated customers make clear the technical issues inherent in this app, and with only three “bug fix” updates since November 2015, the apparent lack of investment is clear to see. 500k 500k 50k 100k 100k 100k 400k+ users still to go! Figure 18: TSB android minimum app downloads | 2016 Q4 to 2018 Q1 5,000k 5,000k 5,000k 5,000k 10k 100k Millions of users still to go! Figure 19: HSBC android minimum app downloads | 2016 Q4 to 2018 Q1 0 1 2 3 4 5 Figure 20:Android app store rating for credit card apps | 2015 Q4 to 2018 Q1
  19. 19. Optima Consultancy | Mobile Banking App Review 2018 p. 18 On a more positive note, both MBNA and Vanquis have seen a marked improvement in their app ratings across both operating systems during the latter part of this study and the same is true for Capital One and Tesco Bank’s iOS apps (Figure 20 and Figure 21). MBNA was purchased by Lloyds Banking Group in 2016, taking LBG’s credit card market share from 15% to 26%29 . This change might help explain the significant rise in ratings from Q2 2017 for their iOS app and Q3 2017 for the Android version with the completed purchase releasing investment back into the unit. The MBNA app has impressively gone from a 2-star rating in Q4 2016 to 4.5 today. The app only had 7 updates in 4 years prior to 2016 on iOS, all of which were bug fixes. From September 2016, MBNA added new features and functionality enabling users to properly service their credit card accounts, such as “order a replacement card” and “set up and amend direct debits”, as well as working to make the app faster. These changes have really helped change customer opinion. A similar story is true of Vanquis and Capital One, who have had a marked improvement over the past two quarters. Vanquis have 29 https://www.theguardian.com/business/nils-pratley-on- finance/2016/dec/21/lloyds-mbna-deal-competition-nils-Pratley added new functionality including push notifications, pending transactions and balance transfers, and along the way have received more than 8,000 reviews, an increase of 1,324%. Over 61,000 ratings for the iOS tracked apps have been added since Q4 2017 following the store rating changes we discussed earlier (Figure 22). This could also help explain why we have seen improvements with users being able to rate the app without leaving a written review. It is worth noting that Tesco Bank have been included in both the analysis of everyday banking providers and monoline credit, as their customer base is predominantly made up of credit card customers. Some of the app functionality 0 1 2 3 4 5 Figure 21: iOS app store rating for credit card apps | 2015 Q4 to 2018 Q1 157 721 214 297 10 27 32507 3,429 20,358 1,397 41 30,820 8,107 Q1 2016 to Q3 2017 Q4 2017 onwards Figure 22: iOS average quarterly app store rating reviews added for credit card apps | 2016 Q1 to 2017 Q3 vs 2017 Q4 onwards
  20. 20. Optima Consultancy | Mobile Banking App Review 2018 p. 19 that Tesco Bank offer within their combined app is only available to credit card customers such as “freeze and unfreeze card” and “report card lost and stolen”, which is important to note when discussing their user rating. Our data shows (Figure 23) that the average time between updates, what we have deemed to be the ‘development cycle’, has reduced significantly over the study period. The average development cycle across operating systems back in Q4 2016 peaked at 84 days between updates, this has reduced by 84% to Q1 2018 with the average now being a 30-day development cycle. 4.11.2 Business Bank of Scotland and Lloyds Bank are the consistent high performers in the business category, both with average user ratings of 4.4 stars for Android and iOS, shown in Figure 24 and Figure 25. NatWest and RBS migrated digital banking for business accounts into their primary (consumer) banking apps in Q4 2017 for iOS and Q1 2018 for Android. This explains the steady decline in rating on Android as investment and updates were neglected in the business app. Upon switching customers, the group experienced several negative customer reviews as initially the new app didn’t allow for multiple users – a key requirement for business accounts but not for personal current accounts. However, reviews in Q1 2018 suggest business customers are now happier with the change. HSBC’s business app user rating has steadily declined across both platforms 0 1 2 3 4 5 Figure 25: iOS app store rating for business apps | 2015 Q4 to 2018 Q1 0 1 2 3 4 5 Figure 24: Android app store rating for business apps | 2015 Q4 to 2018 Q1 85 31 83 30 0 10 20 30 40 50 60 70 80 90 Android iOS Figure 23: Average age (12m moving avg.) in days of credit card apps by operating system | 2015 Q4 to 2018 Q1
  21. 21. Optima Consultancy | Mobile Banking App Review 2018 p. 20 and is not popular with customers. Even a ‘new look and feel’ and the introduction of Touch ID during 2017 the average rating for Q1,2018 on iOS is just 2.4 stars. Also languishing with a rating at 2.4 is Santander’s business app, which was criticised by one Android user as “having an interface like a 2004 app”30 – ouch! Looking at the development cycles of dedicated business apps we can see the same trend emerge as in the credit card category. The average age of business apps throughout our study period peaked at 276 days, however the withdrawal of NatWest and RBS’s business specific apps has reduced the average age of the remaining business apps to 75 days across operating systems. Whilst historically there has been little competition from outside of the traditional banks for business accounts, challenge is coming from the mobile-only players as well as the other challenger brands. Starling bank have recently launched UK business accounts, for small businesses and entrepreneurs, that can be set up in minutes. CEO Anne Boden commented: “in a market with almost no meaningful competition, entrepreneurs and small business owners have for too long been marginalised and taken advantage of by big banks”31 30 Play Store, Google user 12 February 2018 So, it looks like big banks risk having another slice of their customer base taken by the agile mobile challengers offering uncomplicated, frictionless mobile business banking solutions. 31 https://www.finextra.com/pressarticle/73280/starling-bank-moves-into- business-banking Figure 27: Starling launch business accounts 282 66 270 84 0 50 100 150 200 250 300 Android iOS Figure 26: Average age (12m moving avg.) in days of business apps by operating system | 2015 Q4 to 2018 Q1
  22. 22. Optima Consultancy | Mobile Banking App Review 2018 p. 21 4.12 Development cycles Having discussed the development cycles of credit card and business apps it is interesting to discuss these in contrast to the other apps in our study. Figure 28 below shows the moving average development cycle of each app type. Whilst business apps have reduced the age of their apps by 73% from Q4 2016, our data shows that they are only updating apps less than half as frequently as credit providers and three times less than current account providers. The most recent data collection in Figure 29 clearly shows how much more active the challenger non-traditional apps are in their development cycle with one update every 2 weeks. The slower release cycles evident in the credit card and business apps could in part be due to the lack of non-traditional players operating in these segments. If we focus on comparing non-traditional players including payment apps such as PayPal and AIS’s such as Yolt and Tandem the average age is down at just 12 days half the level of the traditional apps at 26 (Figure 30). 30 75 22 0 50 100 150 200 250 300 Credit Card Business Current Account Figure 28: Average age (12m moving avg.) in days of app by category | 2015 Q4 to 2018 Q1 14 17 20 39 50 Non traditional Average current account Traditional current account Credit card Business Figure 29: Average age in days of app by product type | 2018 Q1 A more agile development cycle with frequent releases of new and improved functionality is the new standard in mobile banking apps
  23. 23. Optima Consultancy | Mobile Banking App Review 2018 p. 22 With the likes of Revolut, Monzo and Starling joining the current account market there has been a significant increase in the frequency of updates such that the moving average has dropped from an update every 47 days at the start of our study to 22 days in the most recent (Figure 31). A more agile development cycle with frequent releases of new and improved functionality is the new standard in mobile banking apps. In the next chapter, we will look at the evolution of these features. 45 52 54 46 47 33 26 22 33 28 27 27 11 12 Traditional Non traditional Figure 30: Average age (12m moving avg.) in days of app by type of player | 2016 Q3 to 2018 Q1 47 53 54 45 44 28 22 Both Android iOS Figure 31: Average age (12m moving avg.) in days of app by operating system | 2016 Q3 to 2018 Q1
  24. 24. Optima Consultancy | Mobile Banking App Review 2018 p. 23 5 RAISING THE BAR 5.1 Feature testing During the study we analysed and tested feature sets which were categorised by establishing seven core functions (for a detailed list and description see page 47):  Account management: features that enable a user to manage their account such as, update contact details, amend standing orders and view statements.   Enquiries and interaction: how the app allows a user to communicate, including applying for new products e.g. in app chat, calling customer services from within the app.   Money management: capabilities that help the user to manage their money or budget more effectively such as categorise spending, set budgets and real time balances.   Payments: features that enable a user to make payments e.g. Apple Pay support or making person to person payments.   Technology: how the app integrates and utilises new technologies such as wearables and voice assistants.   Security & control: features that exist to enhance the security of the account or enable a user to control how their card is used e.g. biometric login or ability to report card lost or stolen.   Speed: The time taken to log in and access the app.  The features we have captured are defined in the features methodology. Availability of a feature within each app was collected primarily using the apps themselves and otherwise provider websites, communications with company representatives and the app store descriptions to determine the availability of features. 5.2 Points mean prizes The report is intended to provide a useful at-a-glance snapshot of the current UK banking landscape, along with insightful commentary based on the knowledge and extensive experience of the authors. We have created an Optima score and benchmark to facilitate this – it ranks, and weights app features based on several factors including:  how important the feature is to enable a user to perform everyday banking;
  25. 25. Optima Consultancy | Mobile Banking App Review 2018 p. 24  the extent to which the inclusion of the feature removes friction in the customer journey (i.e. the user would have to visit a branch / call customer services if the feature was unavailable);  how digital first or innovative the feature is (e.g. who else has it?); and  the log-in and performance times 5.3 What is in a ‘typical’ banking app? The British Bankers’ Association’s key members reported in their latest ‘the way we bank now’ study that 61% of current account interactions are now done in app. Given this direction of travel, it’s important to look at how successfully apps cover the necessary features to interact with your current account without having to resort to a branch, telephone or internet banking. Figure 32: Banking apps' share of current account interactions, 2012-201732 32 BBA’s “The way we bank now IV”, 2018 Banking apps’ share of channel interactions to access current account services rose meteorically from 21% in 2012 to 61% in 2017. 0% 20% 40% 60% 80% 100% Face ID Make P2P payments Apple Pay Set up standing orders Amend standing orders Delete Direct Debits Call customer services Google Pay Pay someone new Touch ID Pay existing payees View balances View transactions Android iOS Figure 33: Most supported features by current account apps by OS | 2018 Q1
  26. 26. Optima Consultancy | Mobile Banking App Review 2018 p. 25 Figure 33 charts the key features supported by current account banking apps. Every provider allows the user to view balances and transactions although, as we will discover later, only a handful show this in real-time. The ability to manage regular payments is surprisingly not universally supported and we see customers voice their disappointment in app reviews. Biometrics feature heavily and are now supported universally on iOS. The absence of this feature on Android makes an app stand out from the crowd – in a bad way! This is also somewhat true of the feature “pay someone new” and the “pays” (Google Pay, Apple Pay) – both of which are now offered by most apps. Moving beyond the top supported features, we see that there is a diverse and disparate set of app functionality. The differences in number of features offered by traditional and non-traditional providers is noticeable and - as discussed earlier – new players are deploying new features at a much faster pace. This is illustrated in Figure 34. Significantly, non-traditional apps offer 45% more features than traditional apps. This is common across each category except for Payments where they are 12% behind. However, they are adding features each quarter in this category, so we expect them to be on a par very soon. It is important to remember that the number of features does not necessarily make a “good” app or a satisfied customer. It is the value placed on each of the features by customers and the overall user experience and interface design that is important. For example, is the feature “ATM/Branch finder” really of added value to the customer? Is Google maps not a better, faster and more insightful method? Contrast this with the ability to use the app to report a card lost or stolen. With this context, let’s now explore the trends and leading providers for each category. A quarter of current account apps still don’t support the management of regular payments in-app 0 1 2 3 4 5 6 7 8 9 Account management Enquiries / Interaction Money management Payments Technology Security & control Traditional Non traditional Figure 34: Average number of supported current account features by category by provider | 2018 Q1 +32% +123% -12% +110% +22% +55% +0.4 +0.1 +0.0 +1.4 +0.4 +0.1 +0.4 +0.1 Number of features added since last quarter +0.3+0.1
  27. 27. Optima Consultancy | Mobile Banking App Review 2018 p. 26 5.4 Account management 5.4.1 Trends There are 11 features we categorise as helping a customer to manage their account (page 47). One might consider it surprising that some apps do not allow customers to amend, delete or set up direct debits and standing orders, which 76% of apps currently support. The apps that do not offer customers this functionality such as HSBC and Tesco Bank really stand out. Several apps added account management features this quarter including Barclays who now allows users to “view PIN” within the app. Monzo began rolling out overdrafts to their current account customers after extensive testing since August 201733 . Monzo also send notifications to customers to alert them when there are reaching their limit to help them better manage their money. Starling Bank has offered similar functionality since launch. Interestingly, none of the incumbent banks offer the functionality to manage overdrafts despite this being a core offering for them. 5.4.2 Category leader Barclays comes out top for account management features due in part the support of some interesting features that few other banks support. For example, Barclays offers customers the option to upload and store documents to the app. It also enables them to view and download monthly statements and is one of three providers whose customers can get cash from an ATM using just their mobile phone. Starling and Monzo were very close in score, but the top three were way ahead of the rest. 33 https://www.finextra.com/pressarticle/73418/monzo-introduces- overdrafts 5% 14% 16% 32% 32% 38% 43% 54% 76% 76% 76% Upload & store documents Get cash from ATM using app Manage overdraft View monthly statements View PIN Personalise content Download statements Update contact details Set up standing orders Amend standing orders Delete Direct Debits Figure 35: Supported account management features by current account apps | 2018 Q1 Figure 37: Barclays – upload and store documents feature Figure 36: Category leader: account management Grey indicates where apps have added new features in Q1 2018
  28. 28. Optima Consultancy | Mobile Banking App Review 2018 p. 27 5.5 Enquiries and interaction 5.5.1 Trends There are 8 features that fall under enquiries and interaction (Figure 38). Being able to call customer services direct from within the app is supported by most providers, although those that do not support it are the digital players including Monese, Revolut, Fidor and Monzo. These tend to place more focus on directing customers to in-app chat which in most cases is available 24/7. HSBC are the only incumbent whose users are unable to call customer service from within the app - in fact, at the time of writing this study, HSBC have no features in this category! Although some apps may appear to allow customers to apply for other products, we have discounted these where it is simply an unpopulated re-direct to a browser page. We awarded additional scores to those providers that offered users the ability to open an account from entirely within the mobile app. None of the established players provided this and all had to be opened from within a browser. Those apps with a higher score for this category correlate with user rating in the app store (Figure 39). This is particularly true for Android with a correlation co- efficient of 0.57 (0.46 on iOS). Considering that all major banks signpost the move towards mobile banking when they announce the next wave of branch closures, it is disappointing - although not surprising given the legacy issues - that the customer is not able to do more interactively in the app. 5.5.2 Category leader Starling Bank comes out on top for enquiries and interaction features, not least because of their outstanding account opening process – users can open an account within 5 minutes. Starling and Monzo use location services to determine when users are abroad – so no need to contact the bank! Revolut, Monese, Halifax and Lloyds all came joint 3rd place. Halifax and Lloyds added the ability for users to apply for an overdraft and other products via the app this quarter. 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Optimascore User rating Figure 39: Optima scoring of enquiries & interaction features vs. app user rating | 2018 Q1 (Android) 0% 22% 27% 32% 32% 32% 38% 76% Book appointments Live chat Apply for an overdraft ATM / branch locator Apply for other products Account opening Travel notification Call customer services Figure 38: Supported enquiries and interaction features by current account apps | 2018 Q1 Figure 40: Category leader: enquiries and interaction
  29. 29. Optima Consultancy | Mobile Banking App Review 2018 p. 28 5.6 Money management 5.6.1 Trends Fintechs and broader tech firms are changing the way customers want to use financial products and banking apps by raising expectations. A notable example of this is “real time balances” whereby a banking app is immediately updated to reflect a customer’s transactions. Currently, not one of the traditional banks offer this feature. This is a pain point for users, as one customer complained in a recent app store review for an incumbent provider: “transactions don't show immediately, it takes 3-4 days for full details to show. In the meantime, you have to remember them and work it out using the account balance against available. Other banks app update transactions and update account balance instantly.” Another customer voiced: “There can be hundreds of pounds difference between my balance and my available balance for up to a week before the transactions actually appear!”. This is a key point of difference and advantage for the challenger banks and fintechs and shows how they are meeting customer needs. It is not good enough to ‘fudge’ the system as many of the established players have done with “pending balances” to sticky-tape a solution in the interim (see example in Figure 41). It is not just real-time balances where the incumbents are falling short, a typical customer review for a provider states: “good app but could be better, allowing people to set savings goals and customise their accounts …would be much more useful”. Savings goals are a good example of where challengers are starting to integrate personal financial management tools that really help customers to manage their spending and meet short term and long term financial goals such as saving for a holiday (Figure 42). Challenger banks and other fintech providers such as Monzo, Starling Bank, Revolut and TransferWise were Figure 41: TSB pending transactions partially included within the app Balance does not include the pending transactions listed in the sub-menu of the transaction list but the available to spend balance does Figure 42: Starling Bank savings goals
  30. 30. Optima Consultancy | Mobile Banking App Review 2018 p. 29 found to be more progressive in using technology to give customers more control over their spending through personal financial management (PFM) tools. This is also a category where providers have been adding new features throughout the quarter (Figure 43). In particular, “account sweeping” was a new feature added by Monzo, B and Revolut. 5.6.2 Category leader Monzo tops the table by some distance having added four features in this category in the last quarter alone (budgets, receipts, customisation and account sweeping). Revolut and B make up the podium, with a good coverage of analytical tools and views. All three support real-time balances. 11% 11% 16% 22% 22% 24% 24% 24% 27% 32% 38% 54% 54% 100% 100% PFM: budgets /… PFM: receipts Account sweeping Fast balance PFM: aggregation &… PFM: presentation Savings goals Customise notifications PFM: customisation Push notifications Currency converter Real time balances Search transactions View balances View transactions Figure 43: Supported money management features by current account apps | 2018 Q1 Figure 44: Category leader: money management
  31. 31. Optima Consultancy | Mobile Banking App Review 2018 p. 30 5.7 Payments 5.7.1 Trends Payments is the only feature category better supported by traditional players compared to their challenger rivals. The ability to make a payment in the app is almost universally supported with the exception being First Direct and Nationwide who require a phone payment for the first set up and a card reader respectively. The Pays (i.e. Apple Pay and Google Pay) are well supported and arguably, becoming a hygiene factor for customers. Only Starling Bank allows a user to provision their card directly into Apple Pay before the physical card arrives. Starling Bank added a new “settle up” feature this quarter which aims to make IOUs between family and friends easier and more streamlined. It is worth noting however, that Starling are one of the few providers not supporting person to person payment via mobile number. We also began to see the first signs of roll out for digital cheque imaging this quarter, a feature designed to make paying in cheques much easier and branchless. 5.7.2 Category leader As stated, this category is dominated by the traditional players. Halifax leads due to being one of the first banks to support digital cheque imaging in the app, they also partially support international payments. 3% 6% 5% 11% 11% 22% 26% 62% 74% 78% 92% 97% Add to wallet HCE (payments) FitBit Pay Digital cheque imaging Payment request Samsung Pay Send money abroad Make P2P payments Apple Pay Google Pay Pay someone new Pay existing payees Figure 45: Supported payments features by current account apps | 2018 Q1 Figure 47: Halifax digital cheque imaging Figure 46: Category leader: payments
  32. 32. Optima Consultancy | Mobile Banking App Review 2018 p. 31 5.8 Technology 5.8.1 Trends This category represents the innovative aspects of mobile and digital banking and assesses the app integration with new technology. As might be expected, there is little universal support aside from a third of providers supporting the Apple watch with a bespoke app (although Barclays removed this functionality in the last quarter). First Direct are the sole supporter of voice functionality with Pay by Siri. The new players are increasingly expanding products and services via “marketplace” functionality that intergrates with third parties via APIs to offer users more products, features and fucntionality within the app. The aim is to create a financial ecosystem for users and put them more in control of their finances. 5.8.2 Category leader Starling and Monzo top the leader board due to their marketplace offering with Revolut’s chatbot functionality and Nationwide’s Apple Watch/wear OS support bringing them onto the podium. This is a category we expect to rapidly evolve during the next two quarters. Figure 50: Category leader: technology 0% 3% 5% 6% 11% 32% Samsung Gear Voice assistants Chatbots Wear OS Marketplace Apple Watch Figure 48: Supported technology features by current account apps | 2018 Q1 Figure 49: Starling Bank marketplace example
  33. 33. Optima Consultancy | Mobile Banking App Review 2018 p. 32 5.9 Security and control 5.9.1 Trends This quarter saw Santander finally add touch ID to both apps on iOS and Android. Monzo switched from “magic link via email” to touch ID on Android. This now leaves just HSBC and Barclays not supporting biometric login for Android. Barclays would appear to be a strategic choice given their app’s wider functionality such as HCE payments and ATM withdrawals, but HSBC appears to be a laggard having introduced it for Apple in 2016. The ability to report cards lost or stolen and freeze/unfreeze has also been a popular addition during the last quarter with HSBC and Nationwide adding this function. 5.9.2 Category leader Starling Bank comes out top again for its recent addition of Face ID for Android together with its full card and transaction controls and a consent dashboard (for open banking). Monzo and Barclays have strong offerings across most of the features. 0% 19% 22% 22% 27% 27% 32% 43% 54% 57% 95% Voice ID Consent dashboard Customise alerts Log out settings Activate card Transaction controls Manage devices (Un)freeze card Report lost and stolen Face ID Touch ID Figure 51: Supported security and control features by Figure 53: Nationwide card security controls Figure 52: Category leader: security and control
  34. 34. Optima Consultancy | Mobile Banking App Review 2018 p. 33 5.10 Speed 5.10.1 Login time The ability to quickly and seamlessly access the banking app is a key aspect of customer satisfaction and slow or unstable apps and those without ‘expected’ login methods such as biometrics are savagely reviewed in the app stores. Consumer expectations are set by apps such as Facebook, Google, Amazon and Uber. It is their speed and frictionless user experience that customers compare with their banking app. As part of our extensive testing of the features and capability of the banking apps in the user-testing group, we have been monitoring the app speed and log in times (Figure 54). The upper quartile login time was just 6.1 seconds, with a median login time of 8.1 seconds. A login time of more than 10.3 seconds put you in the bottom quarter of the benchmark group. Login times were similar for both operating systems although there were notable exceptions for instance HSBC was 7.9 seconds slower to log in on Android due to not supporting biometric log in, whereas IOS users can log in using touch ID or Face ID depending on their device. The average log in time for incumbents was a sluggish 11.6 seconds, nearly twice that of the quickest top 25%. Surprisingly, however, the challenger bank Atom was the worst offender. Making use of bespoke ‘face’ and ‘voice’ biometrics (or traditional passcode) appears to be compromised by the need to validate the credentials online and takes an enormously frustrating half-a-minute to simply reach the home screen! Many of the challengers are in the lower quartile with logins under 6 seconds suggesting their cloud-based non-legacy infrastructure (and perhaps smaller customer numbers) gives them a clear advantage. 0 5 10 15 20 25 30 35 Logintime(seconds) Android iOS Average Figure 54: Average login times by OS | 2018 Q1
  35. 35. Optima Consultancy | Mobile Banking App Review 2018 p. 34 5.10.2 The need for speed Time to log in correlates well to app user rating - the higher rated apps have quicker log in times and slower apps are poorly rated by users. There is a correlation co- efficient of -0.61, which is stronger still for iOS, with a correlation co-efficient of -0.68. Although, there is clearly other factors that determine an app’s rating (such as features) this is significant as it indicates that the speed of an app, particularly time to log in, should be a key consideration for providers. 5.10.3 Category leader It is unfair to single out specific providers based on a sample of login tests but these providers all consistently deliver upper- quartile performance of less than 6 seconds! 0 5 10 15 20 25 30 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Timetologin(seconds) App store user rating Figure 55: Log in time correlated with app store user rating | 2018 Q1
  36. 36. Optima Consultancy | Mobile Banking App Review 2018 p. 35 6 LEADING THE WAY 6.1 Account opening Account opening is a key user journey that needs to be made as seamless and frictionless as possible if a provider wants to encourage switching. So far, the current account switch service has had little real success with only approximately 1m switches taking place each year. In testing the account opening journey, we compared some key metrics including:  Time to complete the online application  Time to receive debit card  Time to receive PIN  Provision into HCE wallets  How long before the account could be accessed via the mobile app; and  The total time for a customer to have full use of their account. One of the stand out differences in account opening was the channel in which a customer had to open an account. We opened accounts with over a dozen current account providers and only five could be opened via the mobile app rather than a browser. The amount of information captured or requested during the application process was diverse and this reflected accordingly in the time taken to complete the application, illustrated in Figure 56. Based on the end to end journey, Starling and Monzo lead the pack in UX for account opening. We could open a Starling Bank current account within 5 minutes, entirely on the mobile device requiring only a passport or driving licence. The process was intuitive and user friendly. You could set your own PIN and provision straight into the Pays, with the actual card arriving only 2 days after application. The embedding of the account opening into the app download made these processes far superior for getting the customer up and running with a fully functioning product. Figure 57 shows where the legacy banks struggle to integrate back-office processes for card and PIN mailers and some still insisting on paper internet banking login credentials (Nationwide, RBS, TSB). All these dependent on the timing of the traditional postal service. Inconveniently, to be fully functioning, Barclays required the mobile app to be activated at a Barclays ATM which required waiting for the Card and PIN mailers to arrive before then making a special trip. 05:00 05:30 05:30 05:30 06:00 08:00 08:00 10:00 10:00 10:00 12:30 13:00 30:00 Figure 56: Time take to complete current account application (nearest half minute) *RBS account opening resulted in error page and ended the process. It required a 23-minute chat with an agent to resolve.
  37. 37. Optima Consultancy | Mobile Banking App Review 2018 p. 36 So, we witnessed a best-in-class current account app set up in just 5 minutes to one that took a snail-like 14 days! There is clearly some major room for improvement if the established players want to match their challenger rivals. It’s no surprise that current account switching has been a damp squib when it takes so long to get up and running. This is an area we will explore in more detail in our next study. 6.2 The minimum viable product (MVP) We have seen an explosion in new features in the past couple of years and a transition from one quite basic in functionality (transaction history, a balance and in a few cases, make payments) to one now designed to serve as the main customer interface to the bank. The recent example of TSB’s digital disruption following the migration off LBG’s platform and the ensuing PR disaster, political enquiry and customer outrage, demonstrates how fundamental online banking has become to a consumer. Consumers want an appealing design, ease of use and navigation, the ability to personalise the experience and real-time alerts for important updates. Companies like Uber, Amazon and Spotify have disrupted whole industries with their digital-first approaches, using technology to remove boundaries, present a frictionless experience and make processes seamless or invisible. This is the standard now demanded from banking apps. It is apparent from our study that there are a specific set of features that can now be considered hygiene factors and part of a minimum viable product (MVP). We have determined these based on how well they are supported by providers, customer ratings and store feedback. We see a minimum expectation in the consumer’s eyes that a banking app should allow them to: 1. Login easily with touch-ID 2. See balances in real-time 3. View transaction data through different lenses 4. Stop and control spending on the card instantaneously 5. Pay easily using Google or Apple Pay Based on this MVP, we can see which providers fully satisfy consumer needs and which are lagging behind in (Figure 58) for Android and (Figure 59) for iOS. The top performers may not surprise you. 0 2 4 6 8 10 12 14 16 Card PIN Mobile app Full Figure 57: Current account opening process (days)
  38. 38. Optima Consultancy | Mobile Banking App Review 2018 p. 37 Whilst it is not surprising to see the challenger brands at the top, it is interesting to note the position of Barclays and Tesco Bank. The absence of Google Pay support is strategic for both parties. Barclays provide their own HCE solution on Android and Tesco Bank have their retail business operating the Pay+ wallet which competes with a mobile wallet such as Google. Barclays also appear to make a conscious decision not to support touch ID for Android. Only time will tell if their confidence and delivery of other features overcome customer perception of this lack of a ‘core’ feature. In contrast, Barclays iOS app only lacks real time balances and aggregated views which stops them joining Starling at the top. This further reinforces the strategic direction taken with Android. Where a choice exists, they favour providing their own solutions for customers. However, the same choice doesn’t exist on Apple devices. Apple maintain control of their environments and therefore Barclays have had to support Apple Pay and touch ID or risk appearing like a laggard to their app users. This is also true for Tesco Bank who, like many other app developers have little choice but to respond to the clamour for functionality Apple deem necessary. Figure 58: Android features supported: MVP Figure 59: iOS features supported: MVP
  39. 39. Optima Consultancy | Mobile Banking App Review 2018 p. 38 6.3 The new MVP in 2018 The established players are recognising that they need to quickly adapt to these nimbler challengers and enhance their product offering. In fact, RBS group are clear that their mobile proposition must develop and do so quickly: “We do expect more customers to move to mobile as we increase the apps functionality. Today 68% of every day banking [functions] are available via the app. That’s up from 50% just 12 months ago and we plan to increase close to 85% by the end of 2018”.34 The real challenge for all these traditional players however, is not just to close the gap to today’s MVP but to gain sufficient momentum to keep up with the ever-evolving proposition and customer requirements. We have discussed in this paper that the fastest players in 2018 are releasing an app update at least once a week. This presents an enormous challenge for those behind them to simply stay in touching distance. When we review customer feedback in the app stores and assess which innovative features are well-received, we can determine what are likely to become the hygiene factors moving forward for banking apps. Given the pace of change established by the leading players in releasing new features, it is not unrealistic to describe this as the effective MVP in the very near future! We see a minimum expectation forming that to be perceived as a ‘good’ mobile banking app (or at least better than average) customers need to be able to do most of the following: 1. Login easily with touch-ID 2. Chat to the bank instantly 3. See balances in real-time 4. View transaction data through different lenses 5. Set, track and manage budgets and spend projections 6. Easily set money aside into savings pots 7. Stop and control the spending on the card instantaneously 8. Pay easily using Google or Apple Pay 9. Have access to a marketplace of financial and non-financial providers 10. Use their preferred voice assistant instead of or with their phone 34 RBS press release
  40. 40. Optima Consultancy | Mobile Banking App Review 2018 p. 39 Figure 60: Android features supported: MVP+ Figure 61: iOS features supported: MVP+
  41. 41. Optima Consultancy | Mobile Banking App Review 2018 p. 40 Based on this new MVP, we can see that the six digital challenger brands are already well on their way to this proposition. A scary thought for those established players with millions of customers who may grow tired of them playing catch up! If there is a glimmer of hope for the laggards, then it is the current lack of awareness or perception of the challenger brands. According to research by comparison site Money Supermarket35 , awareness of the digital banks tops out at 19% for Atom and 10% or less for those operating current accounts today. The regulators however, are pushing for more competition, comparisons and switching under open-banking so expect this awareness to grow – along with the valuations of these fintechs! 6.4 Benchmarking the best In compiling this study, it often surprised us to find positive comments about poorly executed apps or features we consider to be hygiene factors. Each consumer has their own assessment of ‘good’ or ‘best’ – one customer might like a convoluted login process because it makes them feel the app is secure and yet another may find this cumbersome and outdated. To conclude this report, we strive to bring all these complex and interrelated elements together, so we can provide an objective and comparable score. We believe this provides an accurate picture of which are the best mobile banking apps in the UK market today. We have summarised the results for the top 10 in the following structure. 35 https://www.moneysupermarket.com/current-accounts/digital-banking/ Figure 62: British awareness of digital only banks
  42. 42. Optima Consultancy | Mobile Banking App Review 2018 p. 41 Congratulations to Starling Bank who top our inaugural list for 2018 with an impressive 8.8 out of 10! Hot on their heels are Monzo and Revolut with 8.5 and 7.4. Starling has upper quartile performance in every category and leads in 3 of the 6 for interaction, technology and security. They do not score the maximum 10 points as they lag behind in money management, a category which second-place Monzo excel at. The fact that Monzo are missing Apple Pay and Samsung Pay support may have cost them the top spot in our ranking! The top 3 mobile banking apps are dominated by the challenger brands with Barclays leading the charge for the traditional players in 4th spot. Challengers make up 60% of the places and despite Lloyds Banking Group claiming to be the no.1 digital banking app we only place them 10th. Despite NatWest winning the British Bank Awards best app (voted for by their customers) we don’t see them feature at all in our top 10. 1 8.8 432 765 1098 8.5 7.4 6.4 5.8 5.7 4.9 4.8 4.6 4.4
  43. 43. Optima Consultancy | Mobile Banking App Review 2018 p. 42 7 LOOKING AHEAD So, after our comprehensive benchmark and user-testing we’ve crowned Starling the best UK mobile banking app in 2018. One key theme that has run throughout the report however, is the accelerating pace of change. The challengers frequently innovate and release new features and the decline in score on some of the established players clearly illustrates that standing still will send you backwards. Some of the successful ideas deployed by these apps are not new – card controls have been around a long time but have never been deployed with the thoughtful design and UX we see from the likes of Revolut. One of the future MVP features we discussed: savings pots and account sweeping was first launched in the USA by Bank of America in 2005!36 Lloyds in the UK followed with a similar product in 200637 . Whilst innovative at the time of launch, Lloyds have failed to capitalise on the proposition and currently the feature is not available in their mobile app. Monzo’s more intuitive, flexible and refined proposition (Coin Jar) has made this work and accessible to customers – and they love it! Other challengers like Revolut have quickly followed with their equivalent called Vault. It is this agile approach to launch, test, refine, test, refine…that really drives the usability and success of the leading banking apps. 36 https://www.bloomberg.com/news/articles/2006-06-18/case-study-bank-of-america 37 https://www.lloydsbank.com/savings/save-the-change.asp#collapse1-1455621277828 Figure 63: Revolut card controls Figure 64: Monzo's Coin Jar
  44. 44. Optima Consultancy | Mobile Banking App Review 2018 p. 43 So, what does the future hold? We’ll update the study in Q4 2018 and will continue to track and test features and scores as the year progresses. But what do we see as the upcoming trends and what are we looking out for in the next study? Here’s our watch list for the remainder of the year:  The increasing number of partnerships developing with fintechs and traditional banks. o Will First Direct’s Artha perform as well as a challenger-only brand? o How fast will progress be made on RBSG’s and Santander’s new digital brands?  The increasing expansion and speed of deployment of new features. o The adoption of new technology like voice and wearables o How many of the features in our MVP+ will become commonly supported? o Will the traditional players be able to move their legacy systems to support real- time balances information?  Open Banking (OB) will start to gain momentum and we will be tracking the use of consent dashboards, account aggregation and 3rd -party integrations. o How will HSBC’s Beta “Connected Money” app be received by customers? Will we see the app go live on Android? o How will the traditional players integrate OB functionality into their apps? o Which third-party AISPs will gain the most traction? o Will the marketplace model become a hygiene factor?  The FCA’s publication of ‘Information about current account services’38 from August 2018. o Will the published operational performance correlate with app ratings and customer feedback? o How will TSB fare in the aftermath of their migration issues? It’s going to be a fascinating watch as the open banking landscape evolves. As early as 1994, Bill Gates made the provocative and still controversially discussed statement that in the future, banking would be needed, but banks themselves would not. This might be true of the digital world we are now living in – banking apps will be needed but perhaps not provided for by the banks? We’ll see if they can prove otherwise. 38 https://www.fca.org.uk/publications/policy-statements/ps17-26-information-about-current-account-services
  45. 45. Optima Consultancy | Mobile Banking App Review 2018 p. 44 8 METHODOLOGY 8.1 Who is included in the study? The data presented in this report is the result of a two-and-a-half-year study on the mobile apps of 52 financial service providers in the UK. The data sample of service providers is listed in section 8.3 and is intended to be representative of the UK banking and payments landscape including those providing current accounts, business accounts, credit cards and account information services, as well as account aggregators and other payment services such as money transfer services. These services are provided by a myriad of incumbent banks, high street banks, challenger banks and fintechs. Data was collected for apps on both IOS and Android operating systems to represent the majority of UK smartphone [users]. 8.2 What data was collected? We collected data from the Google Play store and the Apple App store for each individual mobile application, for example app store user rating, number of reviews and date of last update. This data was collected each quarter for each mobile app, on both operating systems. Further to this, we completed user testing for a select group of 45 mobile apps across both operating systems (where available) whereby we collected data on features and capabilities within the apps including the account opening processes. This user testing group was chosen primarily on those aimed at providing consumers with everyday banking services and what we consider to be ‘ones to watch’ as we look ahead at what’s coming down the line for banking and mobile. The features we have captured are defined on page 47. Availability of a feature within each app was collected primarily using the apps themselves and otherwise relying on bank websites, communications with company representatives and the app store descriptions to determine the availability and support. Mobile app log in times were collected several times within each data collection period at various times of the day. Where biometric log in was available, this was the log-in method used. Log-in times were tested on the latest IOS and Android devices available at the time of collection (Samsung S8, Samsung S9, iPhone 7S and iPhone X). As stated, this report has been compiled from our proprietary primary research. Some secondary data sources such as industry reports and authoritative third-party vendor data has also been used where it helps to enhance or support our findings; these are referenced throughout.
  46. 46. Optima Consultancy | Mobile Banking App Review 2018 p. 45 8.3 Provider list Bold indicates part of the user-testing group. Account Information Service Providers Tandem Yolt Emma Bud Comparison Services Money Supermarket uSwitch Credit Card Providers Amex PO Credit Barclaycard Capital One MBNA Vanquis Business Account Providers HSBC Business Bank of Scotland Business Lloyds Bank Business Santander Business RBS Business NatWest Business Tide Current Account Providers Post Office Barclays Yorkshire Bank Co-op Bank First Direct Bank of Scotland Halifax Lloyds Bank M&S Metro Bank Nationwide Santander Tesco Bank RBS NatWest TSB Monzo Starling Bank Fidor N26 Monese Revolut HSBC TransferWise B Loot Other Payment Service Providers Pingit PayPal Android Pay Samsung Pay Curve goHenry Other Atom Bank (savings)
  47. 47. Optima Consultancy | Mobile Banking App Review 2018 p. 46 9 FURTHER INFORMATION 9.1 About the report If you enjoyed reading this report and would like to know more then please get in touch. A full set of the benchmarking analysis and individual app results are available to purchase as a download from www.optima-consultancy.com/bankapp18 for just £395 +VAT. 9.2 About Optima Established in 2007, Optima Consultancy has grown as a specialist payments consultancy practice, based in Manchester, UK but working across the globe. We have a deep understanding of the payment ecosystem and are fortunate to work with some of the biggest brands in the value chain, including: Issuers, Acquirers, Payment networks, PSPs, Retailers and Mobile operators. Mark O’Keefe Founding director of Optima Consultancy, operating across commercial finance, strategic change and business transformation. 20+ years in the payments industry and a fellow of the Chartered Institute of Management Accountants (CIMA). Corporate experience with M&S Money and Capital One. Matt Simester Director of Cards and Payments at PCL, his expertise covers payments strategy, regulatory management, partnership development, value proposition development, retail payments and benchmarking. Karen Dodd Qualified CIMA accountant with 13 years client-side experience. Specialist in business case modelling, commercial analysis and pricing and proposition development. Previously at TalkTalk, M&S Money and British Airways. Janine Fowles Law and MBA graduate, passionate about digital technology with experience in digital commerce, commercial analysis and project management. Previously at JD Williams as Conversion Rate Optimisation Executive for Simplybe.com.
  48. 48. Optima Consultancy | Mobile Banking App Review 2018 p. 47 10 FEATURES 10.1 Account Management Feature Description Set up standing orders The user can add and save the details of a new recurring payment for a specific amount to a new or existing payee Amend standing orders The user can change the details (such as the payment amount) of a standing order or alternatively cancel the standing order completely Delete direct debits The user can cancel a direct debit mandate View monthly statements An electronic version of a monthly statement can be viewed within the app by the user. This is not just a list of transactions but a replica of the paper statement Download statements An electronic version of a monthly statement can be downloaded to the user’s device as a printable document (e.g. PDF, CSV) Manage overdraft The user can request to increase or decrease their overdraft limit Update contact details The user can update the contact information of the account holder such as address & contact details View PIN The user can view the PIN for the payment card connected to the account Personalise content Aspects of the mobile experience can be “personalised” by the user such as uploading a profile picture, changing the account name or adding a greeting message Get cash from ATM using app The user is provided with functionality within the app enabling them to get cash from an ATM without using their card Upload & store documents The user can upload files within the app to a secure cloud environment
  49. 49. Optima Consultancy | Mobile Banking App Review 2018 p. 48 10.2 Enquiries / Interaction Feature Description ATM / branch locator The user can find information on the location of their nearest bank branch and / or cash machine Apply for an overdraft The user can apply for an overdraft within the app without being redirected to a web browser Apply for other products The user can apply for other products offered by the provider within the app without being redirected to a web browser Call customer services The user can find the contact details for the provider and call them directly from within the app, without having to type the number into their handset Live chat The user can contact the provider via an instant messaging service hosted within the app Travel notification The user can notify the provider of travel plans, allow location based services or informs the user that no action is necessary to travel abroad Book appointments The user can book an appointment and confirm to visit a bank branch Account opening A user can apply and open a new current account or sign up to the service entirely from within the mobile application
  50. 50. Optima Consultancy | Mobile Banking App Review 2018 p. 49 10.3 Money Management Feature Description View balances The user can view their account balance Real time balances The user can view their balance which is updated in real-time for all transactions including card payments View transactions The user can see a description of their payment transactions including information such as the date, type and amount Search transactions The user can search their transaction history using defined criteria Fast balance The app provides the user with the ability to find out their balance without logging in to the app PFM: aggregation & views The user can view their transaction data through different lenses such as aggregated by category of spend (groceries, lifestyle) or by retailer PFM: customisation The user can customise their transactions for example by adding more information or reassigning / creating categories PFM: presentation The user can view insights on their spending in the form of graphs, charts or imagery. Transactions are presented with merchant logos, google maps data or category icons PFM: budgets / projections The app provided projections and predicted bill expenditure and income and allows the user to set and track budgets PFM: receipts The user can add information to individual transactions such as attaching a digital or photographed receipt Savings goals The user can save money by putting specified amounts into “pots” within their current account. Once in a “pot” that money is protected from daily spending. Money can be moved easily in and out by the user or scheduled Account sweeping This feature applies rules to automatically move money between accounts / pots such as rounding up users spend to save the extra money in a savings pot Push notifications The app provider sends the user notifications to their devices (i.e. a pop-up message) at any time (users do not need to be in the app or using the device to receive them) Customise notifications The user can turn on or off push notifications (described above) or choose to only receive certain types or category of push notifications Currency converter The app provides a function whereby users can calculate live currency and foreign exchange rates
  51. 51. Optima Consultancy | Mobile Banking App Review 2018 p. 50 10.4 Payments Feature Description Pay someone new The user can add and save the details of a payee to enable them to “pay someone new” or make a one-off payment to a new payee Make P2P payments The user can make person-to-person payments using the payee's mobile number Digital cheque imaging This function enables the user to pay in cheques using their mobile app. The user typically takes a photo of the cheque and submits it using the app, along with the amount and the details of the payee Send money abroad The user can send money to the most popular foreign countries in the domestic currency of that country (e.g. China, India, USA, Canada & Australia) Pay existing payees The user can transfer money to a payee whose details have already been added and saved to the account. The user therefore typically only needs to state the amount and a transaction reference Payment request Allows the user to request money using a unique personal link that can be sent to friends / family allowing them to make a payment to the user's account Add to wallet The user can provision directly to an external payment wallet without having to enter any card details Apple Pay The issuer of the account / the service provider allows the user to add their card into the Apply Pay wallet Google Pay The issuer of the account / the service provider allows the user to add their card into the Google Pay wallet Samsung Pay The issuer of the account / the service provider allows the user to add their card into the Samsung Pay wallet HCE (payments) The app has a proprietary mobile payments functionality that allows the user to pay using the app at an NFC terminal FitBit Pay The issuer of the account / the service provider allows the user to add their card into the FitBit Pay wallet
  52. 52. Optima Consultancy | Mobile Banking App Review 2018 p. 51 10.5 Technology Feature Description Apple Watch The mobile app is supported on Apple watch and thereby a user can use certain banking app functionality on their Apple Watch such as view balances and transactions Wear OS The mobile app is supported on Android wearable devices and thereby a user can use certain banking app functionality on their Android device such as view balances and transactions Samsung Gear The mobile app is supported on Samsung wearable devices and thereby a user can use certain banking app functionality on their Samsung device such as view balances and transactions Voice assistants The user can perform some app functionality using a voice assistant such as Siri or Amazon Alexa such as make a payment, ask for balance Chatbots The user can engage with the bank via a chatbot which simulates human conversation, or chat, through artificial intelligence thereby responding to customer queries Marketplace The app has marketplace functionality allowing the user to experience a wider financial ecosystem by integrating with a range of products and services from other providers
  53. 53. Optima Consultancy | Mobile Banking App Review 2018 p. 52 10.6 Security & control Feature Description Activate card The user can activate a new or replacement card within the app (Un)freeze card The user can put a temporary block on their card which prevents payments being made using the card details Manage devices The user can authorise / register additional devices or deactivate / switch to new devices Report lost and stolen The user can report to their issuer that their card has been lost or stolen and order a replacement Customise alerts The user can set up alerts that notify them via SMS or email of aspects of their account they want to be in control / aware of such as reaching overdraft limits etc Touch ID The user can log in using touch ID i.e. authentication using their fingerprint biometrics stored on the device Face ID The user can log in using Face ID i.e. authentication using facial/iris recognition technology Voice ID The user can log in using their voice biometrics Consent dashboard The user can review, authorise, manage and revoke consent for third party access to their account Transaction controls The user can control (by switching on or off) the transaction types that their card can be used for such as card not present and ATM transactions Log out settings The user can define / control the log out settings e.g. log out after 1 minute of inactivity
  54. 54. Optima Consultancy | Mobile Banking App Review 2018 p. 53 11 TABLE OF FIGURES Figure 1: LBG customer channel interactions 2014 - 2017 ______________________________________________ 7  Figure 2: Android minimum downloads for selected UK banks _________________________________________ 8  Figure 3: Minimum Android downloads, selected challenger brands ___________________________________ 8  Figure 4: British Bank Awards 2018 winners_____________________________________________________________ 9  Figure 5: App store user rating for all apps by operating system | 2018 Q1 ___________________________ 10  Figure 6: App store rating for selected apps by operating system | 2018 Q1 __________________________ 10  Figure 7: Largest current account app store rating change | 2018 Q1 vs 2017 Q4_____________________ 11  Figure 8: Android app store rating for traditional players | 2015 Q4 to 2018 Q1 ______________________ 11  Figure 9: iOS app store rating for traditional players | 2015 Q4 to 2018 Q1 ___________________________ 11  Figure 10: iOS app store rating for selected apps | 2016 Q4 to 2018 Q1 ______________________________ 12  Figure 11: Average app store rating for non traditional players | 2015 Q4 to 2018 Q1 ________________ 13  Figure 12: iOS App store changes______________________________________________________________________ 13  Figure 13: iOS average quarterly app store reviews added for selected apps | 2016 Q1 to 2017 Q3 vs 2017 Q4 onwards ______________________________________________________________________________________ 14  Figure 14: Android app store reviews per 1,000 downloads for selected apps | 2018 Q1 _____________ 14  Figure 15: iOS number of updates per year for selected apps | 2018 Q1 ______________________________ 15  Figure 16: Age in days of selected apps by operating system | 2018 Q1 ______________________________ 15  Figure 17: BBC News reporting on TSB technical issues________________________________________________ 16  Figure 18:TSB android minimum app downloads | 2016 Q4 to 2018 Q1_______________________________ 17  Figure 19: HSBC android minimum app downloads | 2016 Q4 to 2018 Q1 ____________________________ 17  Figure 20:Android app store rating for credit card apps | 2015 Q4 to 2018 Q1________________________ 17  Figure 21: iOS app store rating for credit card apps | 2015 Q4 to 2018 Q1____________________________ 18  Figure 22: iOS average quarterly app store rating reviews added for credit card apps | 2016 Q1 to 2017 Q3 vs 2017 Q4 onwards________________________________________________________________________________ 18  Figure 23: Average age (12m moving avg.) in days of credit card apps by operating system | 2015 Q4 to 2018 Q1 _____________________________________________________________________________________________ 19  Figure 24: Android app store rating for business apps | 2015 Q4 to 2018 Q1 _________________________ 19  Figure 25: iOS app store rating for business apps | 2015 Q4 to 2018 Q1 ______________________________ 19  Figure 26: Average age (12m moving avg.) in days of business apps by operating system | 2015 Q4 to 2018 Q1 ________________________________________________________________________________________________ 20  Figure 27: Starling launch business accounts __________________________________________________________ 20  Figure 28: Average age (12m moving avg.) in days of app by category | 2015 Q4 to 2018 Q1 ________ 21  Figure 29: Average age in days of app by product type | 2018 Q1 ____________________________________ 21  Figure 30: Average age (12m moving avg.) in days of app by type of player | 2016 Q3 to 2018 Q1___ 22  Figure 31: Average age (12m moving avg.) in days of app by operating system | 2016 Q3 to 2018 Q122  Figure 32: Banking apps' share of current account interactions, 2012-2017___________________________ 24  Figure 33: Most supported features by current account apps by OS | 2018 Q1 _______________________ 24  Figure 34: Average number of supported current account features by category by provider | 2018 Q1 _________________________________________________________________________________________________________ 25  Figure 35: Supported account management features by current account apps | 2018 Q1 ____________ 26  Figure 36: Category leader: account management_____________________________________________________ 26  Figure 37: Barclays – upload and store documents feature ____________________________________________ 26  Figure 38: Supported enquiries and interaction features by current account apps | 2018 Q1 _________ 27  Figure 39: Optima scoring of enquiries & interaction features vs. app user rating | 2018 Q1 (Android)27  Figure 40: Category leader: enquiries and interaction _________________________________________________ 27