What does Apple’s iPad mean for financial marketers?
February 1, 2010
Whenever Apple introduces a new product, everyone in every industry inevitably asks, “What does this mean to me?” For financial marketers, Apple’s introduction of the iPad doesn’t mean much.
The iPad is somewhere between an Amazon Kindle e-reader, a portable DVD player, an Apple iPod Touch, and an Apple MacBook Air but without a keyboard. The interface has been replaced with something akin to Microsoft’s Surface touch-screen technology.
“Tactically, it should have
almost zero impact.”
— Jim Bruene, Netbanker.com
Apple believes its iPad fills a niche between mobile phones — which can be too awkward for things like web browsing and watching videos — and laptops, which can often be bulky overkill.
Prices for iPads range from $499 to $829.
For some Apple fans who already own an iPod, iPhone and MacBook, the iPad may just be one device too many.
“It’s not worth it if you already have a smartphone and a laptop,” says technology megablog Mashable.
Reality Checks:
- As Mashable puts it, “The iPad will not turn industries upside down. It won’t be your primary computing device. And it’s not even a bigger, better iPhone.”
- Every product Apple rolls out is not a hit, and Steve Jobs does not walk on water. Remember the Newton, Apple’s PDA flop? The iPad’s future is far from certain.
- The only thing you couldn’t do before that you can do now with an iPad is wave your finger instead of a mouse.
The iPad is simply one more device in Apple’s array of options for consumers to stay connected to the internet. Apple wants to make sure it has the right-sized device for everyone and every occasion, so we can all live the iLife 24/7.
What can financial institutions use iPads for?
Peter Glyman, co-founder of Geezeo, is “very excited about the iPad as a delivery channel for financial institutions.” He’s optimistic that iPad’s touch-screen technology will have a big impact on online banking platforms.
“Imagine using the mutitouch screen to move money between accounts, or live video chat with customer service from your couch,” Glyman says. “It’s going to create a very exciting user experience for online banking, no doubt.”
In branches, iPads could be used for paperless loan applications — a cool, high-tech solution that environmentally conscious financial institutions should consider.
Andy LaFlamme, Community Development Officer at MaPS Credit Union, thinks “it would be pretty cool to have staff use them to perform transactions in a café-style branch without teller stations.”
And financial planners across North America can’t wait to showcase their graphs and charts with iPad pizzazz when meeting with clients.
But what else is the iPad good for…? At this time, it seems like not much else. (But don’t be discouraged from coming up with your own ideas. If you have any you’d like to suggest, please feel free to leave a comment below.)
Key Questions: If Apple really believes people will adopt 3-5 of their products (and can afford them), which will people use for banking? Will they compartmentalize their usage habits — one device is for A and B, while another other device is preferred for Y and Z? Which device is the most likely to be used for banking most frequently?
While Apple’s latest gadget isn’t likely to be a game changer in the financial industry, the iPad signals an important digital trend financial marketers need to embrace. The iPad is clear evidence of how increasingly wired — and mobile — we are becoming. The day when consumers expect to be able to find/buy/do just about anything online is upon us. Just make sure your financial institution is prepared.
Bottom Line: Most financial institutions have more pressing technology concerns than worrying about how to respond to the iPad.
- Enhanced performance and functionality of your online banking experience
- Mobile banking
- Online tools for personal financial management (PFM)
- An iPhone application, as Netbanker suggests
Any of these items should be prioritized over an iPad initiative.
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Previous related stories from The Financial Brand:
- The Very Mobile Future of Banking
- Survey: 5 questions about online marketing
- Survey proves value of online banking, bill pay
- 12 technology trends shaping financial marketing
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Filed Under: Online, Technology
February 1st, 2010 at 7:22 am
I think you are quite right, and that acting on your 4 point is exactly the right way to approach to the iPad (and other gadgets lurking around the corner).
Enhancing the online and mobile experience is what banks and financial institutions should be focusing on. (And iPad users will be among the key beneficiaries of this, as websites, mobile websites and iPhone Apps all work fine on the iPad.)
February 2nd, 2010 at 2:05 am
Hard to agree with this.
Who doesn’t have 3-5 iPods in the house already, and the first great big 20GB hard drive iPod and todays ones don’t have a lot in common. This is their first shot since Newton and it looks smooth. I agree with Geezo that we will make rich (dare I risk saying ‘fun’) apps for managing money that may change the interaction type and make a way to solve problems 1-4 in style.
Comm bank in Australia recently did a video of “the future” that basically looked like using an iPhone and iPad.
Anyway, we will be ready for it…
February 2nd, 2010 at 8:08 am
iPods and iPads aren’t the same thing. iPods were a logical replacement for an existing and well-established product category, namely Walkmans. iPads are a gamble. Apple is hoping the iPad fills a need, but the need for this particular device is uncertain. Yes, the iPad is a cool device. The question remains: How well will it sell? Will it ever be adopted as widely as iPods?
Affordability is an issue. If you need to talk, you need an iPhone. If you want to listen to music, you need an iPod. If you want to do serious work on a computer, you need an iMac. And now, Apple apparently believes you need the iPad to spackle in the holes.
iPhone = $200 + service
iPod = $200 + songs
iMac = $1,500
iPad = $500
$2,400 to live the iLife is going to be too much for most people.
February 3rd, 2010 at 3:06 am
These things are going to everywhere. Office lobby’s, hospitals, FI branches. What’s really compelling is home use. This iPad is a computer for all. Moms, Grandmothers, Kids…this will replace in many cases the primary home computer. When my wife told me we should get 4 of them, one for each of us and one for each kid, I realized this is going to be huge.
February 10th, 2010 at 9:09 am
Normally I find a lot of what is written on The Financial Brand quite interesting and smart, but unfortunately I find myself very disappointed with this article. Dealing with several large financial institutions as clients on a daily basis, I think your statement “Bottom Line: Most financial institutions have more pressing technology concerns than worrying about how to respond to the iPad” was the approach that many in banking had when it came to mobile. And then banks waited, watched BofA take the lead, and then started following. If we spend time reviewing sources other than Mashable, we might realize that this Gen 1 version actually has some interesting implications for banking. Lets spend less time thinking about what it can’t do for banking and more time thinking about what it can’t do.
February 10th, 2010 at 9:43 am
Real innovation starts with the problem one is trying to solve, otherwise it’s the tail wagging the dog: “I have a solution…to something. But what problem can it solve?” In Apple’s case, they define the problem this way: eReaders are too small, laptops are too big. The solution, in iPad’s case, is only the slightest evolution of existing technologies; there is fundamentally nothing new about it.
New technologies, on the other hand, like the idea of mobile banking or the introduction of the internet, represent significant breakthroughs that require new ways of thinking about existing solutions while also presenting opportunities to develop new ones. The iPad is a mid-size mobile device. It’s a new flavor of existing gadgets, not a new technology.
Adoption rates of the iPad will give marketers a clear picture of how they should respond.
February 10th, 2010 at 3:56 pm
A key consideration for any Financial marketer is the user experience on a touch device: Touch screen technology across many different devices (not just ipods / phones / pads) , and the increase in usage for browsing means web page design needs to cater for this “touch” interaction – a mouse click can have a margin of error of around 2 – 3 pixels. Depending on whether a finger, pen, stylus or thumb is used, margin for error can be a lot larger leading to the possibility of a poor user experience.
Large calls to action and plenty of whitespace around them, or serve different versions of a site for different devices.
February 10th, 2010 at 4:47 pm
Those are very valid points Phil.
February 10th, 2010 at 4:48 pm
Chris Skinner just posted this relevant reflection at his website:
March 7th, 2010 at 8:47 am
[...] The Financial Brand: I pad means little for financial marketers [...]
May 21st, 2010 at 9:15 am
As a realtor I am finding that the iPad is best for client meetings and sharing inforamtion. I can’t write a contract on it but I can help buyers find a home. Besides it is just plain cool!