Cognitive Disassociation
I was reading this very useful analysis of Mobile Wallets by Peter Olynick on Bank Innovation (my go to for the best and current information on FinTech and Banking Innovation). My highlights of the article:
So what will be the killer app for mobile wallets? The technology has proven itself over the past couple of years, and security is getting better, yet most consumers view mobile wallets as a curiosity.
In my words, Banks are realising that customers want more than cool tech. Yes a mobile wallet suggests innovation and edginess. But, they aren’t solving other real problems. Without providing value in solving problems, they aren’t overcoming the cost to switch behaviour.
What can banks do?
It doesn’t sound as enticing as a rewards program, but transaction optimization is perhaps the best opportunity for banks to provide a real mobile wallet killer app. Let the smart phone help the customer decide which account to use for a particular transaction.
As a step in the right direction, large banks have been recently announcing that their proprietary mobile wallets will allow customers to view account balances before a purchase.
Ultimately, banks need to provide two things in their mobile wallet:
- Information from basic live account information through to more complex PFM engines; and
- Payment choice that puts the power of multiple payment choices in the hands of the customer … with contextual and useful information as above.
Cognitive Dissonance
While this article was hugely helpful in understanding and pointing what the future of mobile wallets are, I was surprised in the glaring omission of any discussion of online transactions.
We live in a world where most customers are blurring their online and offline worlds. Or, more simply, customers expect the same experience regardless of the channel.
Going even further, as a bank with a mobile wallet, you are seeking to engage your customer on their mobile device. You know, their device that tethers them to their online world.
Problem?
To date, mobile wallets have been sold as a wallet replacement. A future where you don’t need to carry your cards and therefore a wallet. Is that the real problem that needs to be solved for widespread adoption?
The real problems, that we at Onefill see, are:
- Customers want information in real time that is contextual to their purchase;
- Customers want payment choice and help in optimising their purchasing and rewards; and
- Customers want a familiar experience wherever they shop
We believe these are the future for payments and we are building Onefill to fit into that ultimate story (the online bit!).
