The next wave of mobile banking is almost here. The arguably over hyped smart watches seem quaint next to the possibility of a banking with a HUD. Billy Bambrough explores the banking possibilities of Google Glass
Google Glass made waves like no other product in history when it was shown off in the Glass Explorer program throughout 2013 and sent out to a lucky few developers and creative VIPs for early adopter testing. For a device that may not hit the shops until April 2014 the level of interest from the banking sector has been unprecedented.
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The Ukrainian bank PrivatBank was the first announce they were working on an app for Google Glass in April and showed off a conceptual video in June of what can be expected from Glass once it hits the shelves.
While pretty inspiring some of the ideas (especially using Glass while driving) will most likely never make it beyond the concept stage but it’s hard not to get caught up in the excitement surrounding the possibilities that Glass will bring.
While we haven’t heard anything from PrivatBank since June other banks have since unveiled their intentions to go mobile on Glass.
The obvious comparison for the announcement of Glass is the high profile move of Samsung and Sony into the smartwatch arena which was met with more of a bust than the expected bang.
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By GlobalDataAll of the announced Google Glass apps will allow users to connect to the internet via voice commands. With Banco Sabadell, who have also unveiled plans for a Google Glass app, a customer could connect with Banco Sabadell’s contact center, allowing the bank’s service specialist to see — in real time — the same thing the user is seeing at home. Users can use the app to look up account details (e.g., current balance). The app also helps users find the nearest ATM using the built-in GPS system.
"The mobile internet’s natural evolution will be ‘living services,’" says Pol Navarro, director of channels and Innovation at Banco Sabadell. "Users will want to be able to interact with firms through many different devices, and as quickly and intuitively as possible."
Banco Sabadell says work is currently underway to integrate additional tools into the application, such as their mobile deposit service, allowing users to deposit a check by just looking at it and saying "deposit check".
Xavier Marin, head of digital services strategy at Banco Sabadell, says: "We visualize that it will be important how these devices will change how we use services, for example giving access to customer support by a more natural (using just voice) and convenient way."
Back in June, PrivatBank in the Ukraine gave its customers a taste of what they can expect once the bank’s Google Glass app is available — pay bills by taking pictures of them, transfer funds between accounts, pay for purchases using voice commands or by snapping images of QR codes.
According to Alex Bray, a banking industry analyst and retail channel director for Misys, the world’s banking goliaths are working on their own Glass apps, including Wells Fargo and BofA.
Even though the smartwatch hasn’t made the expected splash banks are still keen to make sure they are on the forefront of tech innovation. Westpac New Zealand is poised to release an integrated mobile banking app for a SmartWatch device. The ‘Cash Tank’ app will show wearers what their current account balance is at all times.
As with any new tech, banks must decide whether they want to jump straight into it and risk investing a lot in a fad or come to it later and risk being labeled a late adopter.
At a recent conference, Bradley Leimer, VP of online and mobile banking at Mechanics Bank said banks need to determine if they want to be a leader, fast follower or a wait-and-see laggard — just like it is with any new technology or innovation.
"There are still a number banks that do not have mobile banking apps or resident tablet applications," Leimer said. "Should these banks be considering looking at wearables when they haven’t developed the basics that customers want today? I don’t think so."
When attendees to the conference were asked how many bankers in the room believed that wearables would have any impact on payments or banking in the next three years, not one person raised their hand.
Jim Marous, SVP/Corporate Development at New Control has been lucky enough tot test the Google Glass technology. He says the viewing screen on the device is substantially less obtrusive than what you would imagine.
"Without some prompt — such as a sound or tactile notification — you would not know that something is happening on the glass," Marous explains.
Marous says the initial use of wearables in banking will most likely be limited to things like alerts, special offers, balance inquiries, real-time receipts and short-form PFM insights.
"Any wearable technology like Google Glass will almost certainly need to integrate voice commands into apps banks develop," he adds. "Unlike a smartphone that is almost entirely tactile, wearable technology relies on voice recognition to be the most effective. This suggests that voice driven banking could expand significantly in the future as technologies like these are refined."
PrivatBank says customers wearing Google hi-tech specs will be able log into their accounts, make payments, conduct video calls with a personal banker and, strangly, open the door to their local branch, using simple voice commands, glances and gestures.
Deputy head of the board of PrivatBank Aleksandr Vitiaz says that work on preparing the bank’s apps for Google Glass began immediately after the Internet search giant first detailed its plans for the project.
With the release of an API for developers, connecting the Google Glass with PrivatBank’s services is in the home stretch, says Vitiaz.
"PrivatBank’s infrastructure in Russia, Ukraine, Georgia, and Latvia is 100% ready to receive the first customers wearing the Glasses," he says.
"It is obvious that we will pioneer developing financial applications for the Google Glass worldwide because the main thing really is not the Glasses but the services set up to communicate with them."
Turkish bank TEB (Turkish Economy Bank) is the latest bank to announce they have a Google Glass app in the pipeline, enabling wearers to find ATMs and branches and track credit card campaigns.
TEB says that with mobile banking now the norm, it wants to bring its Cepteteb platform to the world of wearable tech, beginning with Glass.
The bank estimates that 50m wearable tech devices will be sold this year, rising to 500m in 2018.
Banks are trying to figure out how they can take advantage of the new trend. Banco Sabadell is inviting third party developers to generate fresh ideas for mobile banking through an ‘Open Apps’ innovation programme, with an ATM location application for Google Glass first off the production line.
The Google Glass app has been developed by local company Droiders and uses GPS technology to guide Glass wearers to the nearest ATM. It also allows users to consult their current account and hold video-conferences (24×7) with the bank’s contact centre. Other applications on the way include mobile cheque deposit via Glass.
Navarro says the bank plans to open up its APIs to other development shops and start-ups following the success of the pilot programme with Droiders.
"Over the next few weeks we’ll announce the details and requirements that must be followed by all firms that want to send us their proposals," he says. "We’re convinced it can offer us excellent results, significantly enhancing our ability to interact with customers at the same time as supporting the launch of new business projects and consolidating the talent available in our country."
Outside of the mainstream banks others are experimenting with Glass to do new and exciting things.
GlassPay is a mobile app that enables both shoppers and merchants to buy and sell through Glass.
Google Glass users can scan UPC codes, assemble a ‘shopping cart’, make the purchase using bitcoins, and pick up merchandise instore.
GlassPay uses the decentralised currency Bitcoin which has seen it’s price ballon over the last couple of weeks to over $1,000 per Bitcoin (although the currency remains highly volatile).
GlassPay builds upon the banking apps released for Glass that have been announced by the traditional banks and it’s possible that we could see a GlassPay being intergrated into them some time in 2014.
Google Glass isn’t the weirdest "smartware" design though. Sony has filed a US patent application for "SmartWig" hairpieces in November but there has yet to be a bank that has announced an app for it.
Comment – Misys’ Alex Bray on Google Glass
Google Glass to developers was greeted with much fanfare in the press and excitement in the blogosphere. So, was this all puff? What has happened since?
Well, there is no doubt that it is still early days. After all, the actual device is not going to be commercially available until 2014. However, there are already some interesting signs of activity. In fact, a few banks have already announced Glass applications – and we can glean some insights about the likely direction of future Glass based banking applications.
That doyenne of Iberian innovation, Banco Sabadell has been one bank to announce Glass-based innovation. Sabadell will be launching a Glass app that can display the nearest ATM, allow the viewing of accounts and support 24/7 video conferencing. The bank has in effect focussed on customer service rather than transactions – and specifically placed emphasis on customer communications. This is a great start – but with references to future ATM functionality, the bank is already hinting at a different direction for the future.
PrivatBank in Ukraine was one of the first banks to state their intention to launch a Glass based app. They have now launched a video of their proposed service on YouTube .
Their video of the application includes QR code reading for bill payments and in-store purchases, transfers to contacts initiated by voice, replacing cards at ATMs and even integration with petrol station pumps to decide how much fuel to put in your car. It also includes some interesting perspectives on gender stereotypes, but that is beside the point. The PrivatBank proposition is all about making transactions easier – and for me this is where any Glass proposition will be at its most valuable to a customer.
We also know the world’s banking goliaths are working on their own Glass apps. Miranda Hill, vice president and manager for digital innovation capabilities at Wells Fargo went on the record to this effect back in August. Patents lodged by Bank of America back in September 2012 also suggest that the bank is looking at how to use mobile technologies based on device cameras for object recognition and live video stream analysis. This could have a significant impact on personal financial management applications deployed through Glass, making them more immediate and accessible to customers.
So whilst progress is still slow, the current still seems to be flowing in the direction of Glass. It will doubtless accelerate as soon as the Glass devices are commercially available in 2014. Once banks are in a position to offer customer service and transactions through Glass, I believe we will see a significant shift in customer banking habits. The Google Glass is definitely half full.
