Mobile Banking Innovations: UK Lessons for U.S. Banks

Digital strategists can learn from what’s working in the United Kingdom. The success of innovative chartered neobanks in the United Kingdom has pressured UK retail banks to upgrade digital banking experiences to counter the risk that their customers will switch banks. Although UK banks don’t have all the answers, their efforts amplify trends in the United States in mobile banking app design. Javelin’s review of mobile banking apps from one major retail bank and two neobanks—NatWest, Starling Bank, and Monzo—illustrates examples of how they: 

Simplify P2P, especially for consumers who are out and about. Integrate P2P and personal finance more tightly in transaction ledgers. Give charitable contributions a boost—and win some points for altruism. Take steps to break away from the “PFM in a tab” model of financial fitness. Aim to win share of mind first, to position themselves to win share of wallet down the road. 

Key questions discussed in this report:

• What can U.S. banks, credit unions, and digital banking vendors learn from leading UK banks to improve mobile banking?
• How can FIs make P2P payments more efficient and easier to use to fend off Zelle competition?
• How can FIs use the transaction ledger to increase engagement and showcase mobile banking features?
• How can FIs improve financial fitness features and win share of mind that later leads to sales?

Companies Mentioned:

Monzo, NatWest, Starling Bank