Blog post

Where’s That App? The Rise of Banking App Stores

By Kristin Moyer | April 08, 2014 | 0 Comments

Few banks have deployed their own customer app stores. However, the high demand for apps is causing challenges that could negatively impact sales and user experience. Bank CIOs, CMOs and line-of-business heads should evaluate the potential need for bank-specific app stores.

iTunes, Google Play and other public app stores provide a highly visible and free way to deploy mobile banking apps. Public stores have been the primary app deployment mechanism for banks since 2011, when many banking apps first began to emerge. Bank websites also have been used to list the mobile apps available, usually by LOB.

The app world has changed dramatically since then, and banks may require a new approach to app deployment. First, the total number of apps available has grown rapidly since banks began to deploy them (please see our research on banking app stores here), and we expect this to continue (please see our research on 14 banking apps for 2014 here). This explosive growth has caused challenges with app visibility on both the public stores and bank websites.

Banking app stores can address these and other challenges, but may not always be warranted.

Reasons to Deploy a Banking App Store Reasons Not to Deploy a Banking App Store
App discovery Cost
User experience Additional complexity
Co-creation/collaboration Operational risk

 

We advise CIOs, CMOs and line of business heads to evaluate the potential need for a banking app store in the 2014 to 2015 timeframe. We’ve created a decision framework to help guide this evaluation.

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