Allowing customers to transfer across accounts is a hygiene factor, but not all US retail checking are thinking creatively about the capability in-app, while others are making key journey adjustments regularly
- Retail checking providers are making key changes to in-app internal transfer journeys
- Leading providers are utilizing payments hubs
- Options for recurrent payments are being baked into journeys
- Personalized account naming conventions are making transfers simpler
Such have been the advances in retail checking over the past few years consumers have come to expect the full portfolio of everyday banking capabilities in each digital channel. Many providers are looking to gain competitive edge by continually upgrading key journeys such as in-app internal transfer capabilities.
This is a busy area: In the last quarter alone, about 16% of US-based retail checking providers tracked by the Digital Banking Analyzer made upgrades to their in-app internal transfer journeys. In the quarter previous about 13% initiated change to the journey.
While this is accepted by many as a critical capability in-app not everyone is at the races: 7% of all providers tracked fail to offer the ability to move money between accounts at all. Fintechs are the worst offenders in this area, with just 71% of those tracked by the offering internal transfers in-app – although of course not everyone offers multiple accounts. Next, 80% of community banks offer the capability, 91% of regionals, and all national, super-regional and credit union users can complete the journeys in-app.
Those leading the field in the area consider how user experience can be modified to encourage engagement in the channel. In most instances, the journey includes the option to make the payment recurring – as internal transfers are likely being made with savings in mind – over different timeframes, and variable to allow for changes in the user’s circumstances. As part of the great shift to personalized digital banking experiences, leading providers offer the ability for the user to rename their accounts, thereby making it easier to identify accounts set up for specific reasons. This feature is becoming increasingly popular among providers, with 60% of US retail checking platforms making it easier and more appealing to move funds around internally.
As part of a wider payments narrative, thoughtful providers are considering how the internal transfer journey should be implemented as part of the wider payments family and sitting within an easier accessible payments hub. US consumers are becoming increasingly knowledgeable about the different ways to pay bills and transfer externally – a fact that must be considered when positioning internal transfer journeys. This is about providing clearly signposted, well-orchestrated and streamlined functionalities that appeal to the user, and their place within the app is significant.
Building everyday engagement into user experience is critical for banks, both in terms of new users and existing long-term customers. Personalization can go a long way in developing higher levels of activity. Tools such as unique savings pots, in which the user can assign purposes, goals and targets and which can see automatic internal transfers established as well as one-off payments encourage account and app engagement.
Leading providers are constantly adding to their capabilities to drive higher levels of engagement, thinking creatively about how to get customers to log in on a more regular basis. The internal transfer journey is a great example of a standard capability that has the potential to become a key differentiator.