Mobile banking has been a significant trend affecting the retail banking industry. In 2009, 18% of mobile phone owners reportedly used mobile banking, and this number has grown to 51% of mobile phone owners in 2016. To capitalize on the capabilities of the smartphone and penetrate this increasingly popular customer channel, Wells Fargo introduced its retail mobile banking app in 2012. The company also accompanied this tool with additional resources like SMS-triggered alerts and notifications. These resources have created convenience for customers by allowing them to manage accounts, transact, and explore products without having to visit the branch or even a computer. [2] [3]<\/p>\n <\/p>\n In addition to creating one of the first mobile banking apps, Wells Fargo has embraced more advanced technology and digitization by investing in six innovation labs and a Startup Accelerator. Rather than seeking a high return on the technologies developed through these programs, the bank is building relationships with entrepreneurs and engineers whose technologies can someday be used in the Wells Fargo digital infrastructure. One example of a startup the bank has supported is EyeVerify, a participant in the bank\u2019s accelerator program since 2014. Wells Fargo announced in early 2016 that it plans to roll out an eye-scan biometric security technology to its corporate customers to ensure secure sign-in on mobile apps. While there are some doubts and limitations surrounding this specific technology, the bank has been a pioneer of integrating innovative features to its digital interfaces to stay on the cutting edge of mobile technology. [4] [5]<\/p>\n <\/p>\n The move towards digital banking has allowed banks to decrease their physical branch footprint, leading to operational efficiencies. From a high of 100,000 bank branches in 2009, the number of retail bank branches in the U.S. has dropped year over year, with some of the largest contributors being Bank of America and Chase. Since 2012, Bank of America has slashed 15% of its branches, and Chase has shrunk 9%. Through the 2009-14 period, Bank of America alone benefited from cost savings of $4 billion from shrinking the size of the branch network. Wells Fargo\u2019s branch count has remained more stable as compared to its competitors but has declined nonetheless from 2012 to 2016 at a rate of 2% per year. [6] [7]<\/p>\n While Wells Fargo has continued to improve customer experience and decrease its branch footprint as a result of mobile technologies, the company can do more to advance its mobile offerings and keep up with customer demands as they increasingly move their transactions online.<\/p>\n <\/p>\n As demonstrated in the graph above, most banks and fintech companies have been focusing on building mobile app suites, electronic wallet solutions, and personal finance tools. Going forward, Wells Fargo and other banks should shift their focus to more advanced digital consumer solutions. Examples include:<\/p>\n <\/p>\n <\/p>\n By investing in these technologies, Wells Fargo would be reacting swiftly to changes in the customer journey: a move away from in-person advisors to online chatrooms and review sites that grade products and services, a personalized customer experience that does not involve traveling into a physical retail establishment, and the social element of payments that current banking apps do not facilitate. If Wells Fargo is able to successfully launch these products that address customers\u2019 digital behaviors, the bank will improve its customer experience and differentiate itself from less tech-savvy competitors. [1]<\/p>\n <\/p>\n In sum, Wells Fargo is ahead of the curve in its adoption of digital technologies to improve the customer experience. With its strategic investments in high-potential startups and technologies, the bank is well-positioned to outpace competitors, whose customer experience significantly lags behind other industries that have already revolutionized their digital platforms. As Wells Fargo continues to invest in its digital future, the company is living up to its customer promise of \u201cTogether we\u2019ll go far.\u201d<\/p>\n [796 words]<\/p>\n <\/p>\n [1] \u201cBanking in a Digital World.\u201d AT Kearney and Efma, 2013. https:\/\/www.atkearney.com\/documents\/10192\/3054333\/Banking+in+a+Digital+World.pdf\/91231b20-788e-41a1-a429-3f926834c2b0<\/a><\/p>\n <\/p>\n [2] \u201cMobile Banking Strategy: 4 Best Practices to Follow.\u201d Centric Digital, April 2016. https:\/\/centricdigital.com\/blog\/digital-trends\/mobile-banking-strategy-best-practices\/<\/a><\/p>\n <\/p>\n [3] \u201cGoing Far with the Wells Fargo Mobile Banking App.\u201d Centric Digital, May 2016. https:\/\/centricdigital.com\/blog\/digital-strategy\/going-far-with-the-wells-fargo-mobile-banking-app\/<\/a><\/p>\n <\/p>\n [4] \u201cWhy Wells Fargo Keeps Adding To Its Innovation Initiatives.\u201d Penny Crosman, American Banker. July 2015. http:\/\/www.americanbanker.com\/news\/bank-technology\/why-wells-fargo-keeps-adding-to-its-innovation-initiatives-1075682-1.html<\/a><\/p>\n <\/p>\n [5] \u201cWells Fargo to Verify Customers through Eye Prints.\u201d Kim Nash, Wall Street Journal, April 2016. http:\/\/blogs.wsj.com\/cio\/2016\/04\/26\/wells-fargo-to-verify-customers-through-eye-prints\/<\/a><\/p>\n <\/p>\n [6] \u201cScandal may speed up Wells Fargo branch closures.\u201d Matt Egan, CNN, October 2016. http:\/\/money.cnn.com\/2016\/10\/21\/investing\/wells-fargo-branch-closures-fake-accounts\/<\/a><\/p>\n <\/p>\n![\"exhibit-1\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Exhibit-1-19.png\")
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