Is a smartwatch the future of the consumer banking experience? Given the growing trend of financial institutions incorporating the Apple Watch into their banking strategies, the answer could be yes.
Apple’s push into the wearable technology market has come to a head with its version of a smartwatch. The Apple Watch opened for preorders in early April, and some industry experts believe that consumer demand will be strong. What exactly is the Apple Watch? Like a traditional watch, it is worn on the wrist – but unlike a traditional watch, it has an interactive display screen and can act as wearable mobile device.
“Small banks are ahead of the tech curve.”
Naturally, the possibilities of a smartwatch are great, especially for consumers. The Apple Watch could be used to stay in touch with friends, communicate with businesses and perform a whole hosts of other tasks (fitness is one angle emphasized by Apple). However, banks are also hopping on the Apple Watch bandwagon, offering a new way for customers to bank from their wrists.
Banks look to get ahead of the curve
Leveraging the Apple Watch for banking is new trend in the industry today. A report from American Banker highlighted the fact that several banks that are looking to capitalize on this type of technology, mainly as a way to improve the customer experience.
At least five banks are rolling out companion apps for the Apple Watch itself. Four of those five are smaller banks as well – with the outlier being Citigroup – using the Apple Watch as a way to level the playing field between community banks and the megabanks.
For these banks, the Apple Watch presents a unique opportunity to reach more customers, as explained by Matthew Smith, vice president of e-banking services at Texas-based Happy State Bank.
“Banks have never been in the position they are in today,” Smith told American Banker. “In the past, customers had to go out of their way to go to the bank. … With mobile technology, banks are everywhere the customer is. We are in the customers’ back pocket.”
The smartwatch could be the future of banking.Technology makes banking easier
The idea behind pairing the Apple Watch and the banking industry is simplicity. Banking shouldn’t be a challenge for consumers, and technology can make banking easier.
With an app on the Apple Watch, individual banks have a new way to connect with customers and share valuable information. For example, a consumer could perform simple transactions from their wrist. This ability has some pointing out that the Apple Watch could cause banks to reinvent consumer interactions, according to a separate report from American Banker.
“Imagine being able to check your balance right from your wrist, without reaching for your phone,” Matt Krogstad, vice president of mobile banking and payments at Bank of The West, told the media outlet. “I think it’s an awesome use case.”
One of the best trends associated with the Apple Watch is the tendency of smaller banks to be ahead of the curve. Traditionally, only the big banks have the resources to jump on new technology. It is a good sign to see smaller banks doing the same thing.
Technology is key for banking
Overall, incorporating new technology into banking is incredibly important. From a consumer experience perspective, the branch that has the best tech is likely to be the preferred destination.
Tools like cash recyclers and Internet-connected ATMs speed up the process and simplify transactions, all of which are critical for consumers. Despite being in the early stages, it appears that the Apple Watch is likely to have a similar effect on the industry.