Customers embrace mobile app

ASB Bank chief executive Barbara Chapman says consumers are switching on to mobile banking at four times the rate of internet banking when it first took off.

However, banks were getting faster at being able to copy each other’s technological innovations so any competitive advantages they gained would be more shortlived.

‘‘When we introduced internet banking, I think we had a two- or three-year advantage on every other competitor.

‘‘There is no way you would expect a two- or three-year advantage on any technology now,’’ she said.

However, only ASB, Kiwibank and TSB instantly processed internal transactions such as transfers between their own customers’ accounts, which made mobile banking more relevant, Chapman said.

‘‘That piece is hard for banks to replicate.’’

Kris Nygren, Auckland manager of IT testing company Optimal Usability, said it was probably fair comment.

‘‘ASB has had that advantage for almost 30 years and they have quite a big development team.’’ But 80 per cent of what banks offered smartphone users would be the same, he said.

Chapman said customers who signed up to ASB’s sub-brand, BankDirect, would be better off switching across to ASB proper so they did not miss out on new technology such as ASB’s latest mobile banking apps.

BankDirect was founded in 1997, when banks around the world viewed branch networks as a drag on profits and were keen to offer cheaper mortgages and better savings rates to tech-savvy customers who were prepared to bank over the internet and by phone.

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