We've published our first edition of the German mobile banking app review today. Download the full report, for free, from our website.
Having published five editions of our UK mobile banking app review, we've been working during the last six months, in partnership with Visa, on a German version of the study and I'm delighted to share the results!
Challengers are setting the bar high for the new 'normal'.
Like elsewhere in the globe, the new fintech challengers have raised the bar when it comes to what can be done in a mobile banking app. New entrant Vivid have launched with a proposition stronger than most in the market and Revolut continue to release features at a rapid pace.
The challenger apps have a significantly higher number of features in every category
The new digital age is showing up some of the incumbent offerings. Whilst the ‘basics’ are handled well, there is a distinct lack of more intuitive features in money management or security controls. Support for the Pay wallets from Apple and Google in debit is poor, especially those still reliant on a co-badged Giro account. Using a credit card to access the Pays is often the reality for the consumer.
This has manifested itself when we compare the average number of features in an app. New providers have twice as many features available to their customers: meaningful ones too like setting and tracking budgets or categorising transactions.
Agility will become the new battlefield
Not only are these challenger apps feature-rich but they also tend to be faster and more consistent, providing users with a better all-round digital offering. There is quite a distance between the new and old when it comes to how frequently their app is updated.
Challengers are on track to release over 5x the number of app updates compared to direct and traditional providers
Global best-practice is driving the table-stakes
Reflecting on how a mature market like the UK has developed ‘table-stake’ features, we witness the challengers already supporting many of those we expect to become mainstream in Germany in the near-term. Lessons can also be learned from the approach banks in the UK have taken to driving customer reviews and app ratings to a hygiene level of 4+.
The Revolut-ion has begun?
COVID-19 will further accelerate change in the market: who can evolve quick enough to keep up with this demand? Will the consumer have patience for those moving slowly? The fact that a new bank like Vivid can launch straight into market with a top quartile app exposes those who are delivering little innovation.
Revolut’s impressive charge to build a global ‘SuperApp’ has certainly ruffled a few feathers in some markets and they deservedly top our ranking in the inaugural German study. Congratulations to them!
Their impressive open-banking features (in partnership with TrueLayer) could provide a real test for this market when fully deployed in Germany as it will shine a light on what their app can do with other banks’ data.
The digital battle has started. Who is up for the challenge and where will this takes us? Is it up to new kids like N26 and Vivid to take on the ‘SuperApp’? Or will the trusted, established banks leverage their relationship with the German consumer and dominate everyday digital banking in this next decade? We will continue to observe this highly competitive market over the coming months and look forward to seeing who tops the charts in the 2nd edition.
Download the full report for free at www.optima-consultancy.com/bankapp
We'd love to here what you think of the report - reach out on social media to any of the team with your thoughts or feedback.
