P2P Dominates Banks’ Mobile Apps in Payments, but Other Functions Lag

All but two of 27 bank mobile apps examined in a new S&P Global Inc. study offer person-to-person payments and another bank will soon add the feature to its app. But less than a third of the apps support cardless ATM transactions.

The study by New York City-based S&P Global’s Market Intelligence unit examined mobile apps from national banking giants and large regional banks for 23 features ranging from payments to biometric logins to access to statements, and other functions. Wells Fargo & Co. and Bank of America Corp. topped the rankings by offering all 23 features, according to S&P Global.

Only two banks surveyed, Charles Schwab Bank and Santander Bank, did not offer P2P payments in their mobile apps. Huntington Bank doesn’t yet, but is planning to offer it soon, according to S&P Global.

Big banks are now offering P2P payments under their own brands and through the Zelle service from the bank-owned Early Warning Services LLC. And through processors such as Fiserv Inc. and Fidelity National Information Services Inc. (FIS), smaller banks and credit unions also can offer Zelle to their customers as well as the Popmoney and People Pay P2P services from Fiserv and FIS, respectively.

All or nearly all of the apps include what are now standard components such as balance checking, account transfers, branch and ATM locators, bill payments, mobile check deposits, and some other features. But only seven, with one other planning a rollout, currently offer cardless ATM functions such as arranging a cash withdrawal in advance and using the app at the ATM to initiate dispensing. And just three of the financial institutions surveyed offer so-called picture bill pay through their mobile app.

“Innovative digital tools can give banks an edge as they compete for consumer deposits in a rising interest-rate environment,” Katie Darden, associate director of financial institutions research at S&P Global Market Intelligence, said in a statement. “But banks are not just vying with each other for consumer wallet share, as both big tech companies and startups increasingly engage in financial services. The most successful financial institutions will combine the unique advantages of the banking industry with cutting-edge technological developments.”