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An Inside Look At Chase’s MOBILE BANKING APPROACH FEATURE STORY NEWS & TRENDS DEEP DIVE Jason Alexander, head of digital Standard Chartered launches fully How challenger banks are platforms06 at Chase, discusses digital, mobile09 bank responding as14 legacy banks 10 years of mobile banking go digital APRIL 2019 © 2019 PYMNTS.com All Rights Reserved 1 DIGITAL BANKINGTRACKER™ TABLE OF CONTENTS What’s Inside The latest efforts by legacy banks, FinTechs and other financial players to upgrade their products and 03 digitize banking services Feature Story Jason Alexander, head of digital platforms for JPMorgan Chase, talks about how the bank is 06 reevaluating its digital strategies a decade after the launch of its mobile banking operations News and Trends 09 The latest on how financial institutions are using tools and technologies to add speed and convenience to their users’ experiences Deep Dive: An in-depth look at how legacy banks and modern-day challengers are competing to retain customers as 14 digital banking becomes the norm Top 10 Rankings 18 The highest-ranking B2B and B2C digital banking providers Watch List 19 Three additions to the Digital Banking Tracker™ provider directory Scorecard 20 The results are in See this month’s top scorers and a directory featuring more than 250 digital banking players About 153 Information about PYMNTS.com and Feedzai ACKNOWLEDGMENT The Digital Banking Tracker™ was done in collaboration with Feedzai, and PYMNTS is grateful for the company’s support and insight. PYMNTS.com retains full editorial control over the findings presented, as well as the methodology and data analysis. © 2019 PYMNTS.com All Rights Reserved 2 What's Inside Financial institutions (FIs) around the world are ad- conversion into a full-scale digital bank. Consumers justing their focuses to accommodate consumers are becoming inundated with a growing number of who are turning away from physical branches and banking options, and apps like Carbon are hoping toward digital banking. A number of financial players that their stable user bases will remain loyal and use are undergoing significant digital transformations any new features they provide. Competition remains to win the trust and business of tech-savvy, modern fierce, though, as more brands are transforming to consumers. enter the digital landscape. Banking startups with often-limited resources, finan- Around the digital banking world cial companies backed by eCommerce and social sites and established brands are all actively trans- To remain competitive, banks in the U.K. — and oth- forming their operations to entice digitally native er regions where the revised Payment Services Di- consumers. Legacy players like JPMorgan Chase rective (PSD2) is thriving — are utilizing third-party and Goldman Sachs are creating digital-only brands, connections and tools to upgrade their services and offering more features to retain customers. Amid speed. One such FI is NatWest, which added a mo- these digital shifts, consumers have more options bile app-enabled open banking feature that allows than ever before. customers to see their account information at 15 other U.K. banks. In Luxembourg, BNP Paribas re- FIs across the globe are expanding the features and cently partnered with Personetics to add personal services they offer, transforming how they approach spending tracking and financial advice options to its their relationships with customers and other non- app to enhance customer retention. traditional financial players. South Africa and India are both working hard to establish digital banking Other banks, like Standard Chartered and Discov- ecosystems and, as a result, FinTechs looking to cap- ery, are moving away from long branch lines and italize on mobile-savvy consumers are on the rise in launching all-digital services spun out of their more these countries. Three of China's biggest compa- traditional brands. The two join a long list of legacy nies — Ant Financial, Tencent and Xiaomi — are all banking players that are bringing their resources to seeking digital banking licenses in Hong Kong as the bear against smaller, more-nimble financial startups region’s traditional banks begin digitizing their exist- that have been chipping at their market shares. ing infrastructures. For more on what’s happening in the digital bank- In West Africa, Nigerian lending app Carbon is ing world, read the Tracker’s News and Trends sec- using its services and features to springboard its tion (p. 9). © 2019 PYMNTS.com All Rights Reserved 3 WHAT'S INSIDE An Inside Look At Chase’s Mobile Banking Approach EXECUTIVE INSIGHT Mobile isn’t a new playing field for JPMorgan Chase, but the bank is rethinking its strategy. Jason Alex- ander, the company’s head of digital platforms, told What are some of the biggest PYMNTS that speed has become key to keeping cus- challenges legacy FIs must overcome tomers satisfied, which is why the brand is piloting ser- as they transform their infrastructures vices on its digital-only bank, Finn. Read this month’s to compete with new entrants? Feature Story (p. 6) to learn more about Chase’s digi- tal transformation. Deep Dive: Challenger banks face rising “The line between finance companies and tech companies is getting blurry. Apple and Goldman Sachs competition from fully digital legacy brands proved that with the launch of Apple Card, Varo Bank Digital features and services are now table stakes, is proving that as it becomes the first true digital-only meaning legacy banks that have typically focused on bank and, clearly, Chase is making that a reality [as it] physical locations are racing to up their digital games. continues to innovate. While that can mean more choices for customers and But what makes this easier said than done for prime opportunities for fledgling financial startups, established players is not the ability to bring in exciting it presents clear challenges for established players. technology like AI. The real differentiator for legacy FIs is to innovate in a way that can be applied at scale: On the opposite end of the spectrum, digital-only Being robust enough to handle the needs of an already challenger banks operating without the resources massive customer base while [being] flexible enough available to legacy FIs can no longer rely solely on to tackle new use cases in the same way that smaller technological prowess to lure in customers. For an in- challenger banks are able to. depth look at how challenger banks and traditional FIs That's why the fraud prevention and anti-money are battling it out, read the Tracker’s Deep Dive (p. 14). laundering work we do with banks like Citi and others is so important, [allowing us] to process billions of dollars’ worth of transactions each day [while] adapting to changing needs and demands seamlessly. And the real gold standard for any institution bringing in this kind of technology is that it's making life much better for the end consumer.” PHONG Q. ROCK senior vice president of corporate development and global partnerships at Feedzai © 2019 PYMNTS.com All Rights Reserved 4 WHAT'S INSIDE 5Five Fast Facts 27% 68% 36% Portion of Share of Portion of millennials who American customers aged stated mobile consumers who 22 to 30 who apps are the would like all of prefer to apply for most important 91% their banking and 20% personal loans banking features payment features online or via integrated into mobile apps one mobile app Share of Canadian Portion of U.S. customers who banking branches believe technology expected to close has made banking between 2014 and more convenient 2020 © 2019 PYMNTS.com All Rights Reserved 5 AN INSIDE LOOK AT CHASE’S MOBILE BANKING APPROACH © 2019 PYMNTS.com All Rights Reserved 6 What’s Inside People want to do everything on their mobile phones — from the simplicity of checking their balances to booking full rewards travel. So, when we start thinking about mobile now, we have to really understand the customer [and] what they’re trying to do. JASON ALEXANDER head of digital platforms for JPMorgan Chase After the June 2007 announcement of Apple’s constantly upgrading its mobile strategy to ensure it first-ever iPhone and the ensuing buzz around iOS gives customers the speed and security they want. apps, financial institutions began developing offer- “Ten years ago, [the app] was designed to deal with ings to ease digital banking. Though narrow in fea- mobile use cases, [and] checking your balance was ture and scale, those initial apps put personal finance a primary use case,” he said. “It made the app quite management at users’ fingertips. Twelve years later, simple in that [those features] were all people wanted mobile banking has become ubiquitous across much to do on a mobile phone. Now, 10 years later, people of the global financial ecosystem. FIs are now com- want to do everything on their mobile phones — from peting fiercely to ensure that consumers are choos- the simplicity of checking their balances to booking ing their mobile banking services over their rivals’ by full rewards travel. So, when we start thinking about providing apps with more speed, security and other mobile now, we have to really understand the cus- capabilities. tomer, what they’re trying to do, how to make a broad It's no longer enough for FIs to provide mobile apps set of different functionalities available to people in that are just safe and secure, said Jason Alexander, what’s still a relatively small-form factor and [user head of digital platforms for JPMorgan Chase. He interface].” recently told PYMNTS that banks’ solutions must Alexander claimed Chase is looking to keep its mo- offer everything consumers are looking for, and FIs bile transformation approach simple. The bank is must actively innovate to support new use cases.

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