Mobile banking enrollment is becoming easier as financial institutions look for ways to let customers begin using digital banking services directly from their smartphones. FIS has introduced an iPhone application that allows consumers to enroll in mobile banking without first using a PC or establishing an online banking account.
The approach uses a familiar piece of banking technology—the consumer’s debit card—as part of the authentication process. By combining existing payment credentials with mobile technology, banks can potentially simplify enrollment, reduce operational complexity, and make mobile banking more accessible to customers who may not already use online banking.
This week, FIS announced the release of their new iPhone appwhich allows a consumer to enroll in mobile banking without leavingtheir phone.Yes, according to FIS, that means no PC or online bankaccount required for the process.Interestingly, the applicationleverages the consumer’s debit card as an authentication tokenwhich represents such an obvious intersection between legacy andleading bank technologies.
As I’ve written about before, many new payment and financialservice products rely on a layering of new user id’s, specialcodes, one-time use numbers, and the like.What appeals to me aboutthis application is that the consumer simply has to have a debitcard and a mobile phone.This makes educating consumers about thenew product easier, shrinks the operational footprint, and arguably(full disclosure – I have not tried the app myself) offers a higherdegree of usability.
I remember when bank-by-phone was first introduced and it alsoleveraged a well-worn consumer experience, the humble telephone, tocreate what was at that time, a cutting edge banking experience.Inthe run up to creating the next generation of financial serviceaccess tools, it’s nice to see that there’s still a place for thefamiliar with the fantastic.
The FIS approach demonstrates how mobile banking enrollment does not necessarily require financial institutions to create entirely new authentication processes. Instead, banks can build on tools and behaviors their customers already understand. Using the debit card as an authentication token provides a bridge between established banking infrastructure and emerging mobile services.
That simplicity could be particularly valuable as banks encourage more customers to adopt mobile banking. Requiring consumers to establish separate usernames, identification numbers, temporary codes, or online banking accounts can create additional steps that discourage enrollment. Allowing customers to begin with a debit card they already possess could make the process easier to explain and potentially easier to complete.
The strategy also illustrates a broader principle in financial technology development. New banking experiences do not always have to replace familiar technologies. Earlier innovations such as telephone banking succeeded in part because they used a device and behavior consumers already understood. Mobile banking can follow a similar path by combining the capabilities of smartphones with established payment and authentication tools.
As financial institutions expand their digital channels, reducing friction during mobile banking enrollment could become increasingly important. Solutions that combine new technology with familiar customer experiences may help banks increase adoption while avoiding unnecessary complexity for both customers and banking operations.