Banks Must Have Banking App Store For Customers

by CXOtoday News Desk    Jun 06, 2014

banking apps

Banks with many mobile banking apps should use banking app stores to help customers find the apps they need, says research firm Gartner, which predicts that by 2016, 25% of the top 50 global banks will have launched a banking app store for customers.

At present, most banking customers either have to go to a public app store like Google Play or Apple’s App Store or search for the app on the bank’s website. In the public app store, the banking app can get lost among the millions of apps available, while on the bank’s website, apps are often hard to find because they are usually listed by line of business.

“Left unaddressed, this can have a negative impact on banking revenues and customer experience. Banks can use banking app stores to improve app discovery but only if the added cost and complexity are warranted,” warns Kristen Moyer, research vice president at Gartner.

In light of these changes, Gartner advises CIOs, CMOs and LOB heads to evaluate the potential need for a banking app store. To evaluate whether its needs a banking app store, Moyer recommends that a bank look at two variables - the number of apps they have and whether they have an application programming interface, or API, platform. The more apps a bank has, the greater the need to organize them into an app store. In addition, an API platform deployed to third-parties has the effect of multiplying the number of apps a bank has.

Gartner offers banks three options for their banking apps:

App store: The app store should include information such as a description of the app, app ratings and support. The app store can provide direct app downloads or links to public app stores. Gartner recommends the app store option for banks with 15 to 20 or more apps or those with an API platform.

Website reorganization: Instead of deploying an app store, the bank reorganizes its website to make it easier for customers to find apps and provide feedback. Gartner recommends this option for banks with 2-20 apps, but not an API platform.

Standard website: Banks list apps by line of business or under mobile banking. Gartner recommends this option for banks that have only deployed one app (which really means they don’t recommend this option).

As more banks deploy app stores, it will put competitive pressure on those that do not, states Gartner.