When Apple declared its iPad tablet a new category of computing, a few banks looked at the device and wondered whether it was also a new channel for self-service banking.
Some banks have stuck to a one-size-fits-all approach, essentially stretching mobile apps to fit the iPad's larger screen. Experts say, however, that the product's unique capabilities and audience warrant a more targeted strategy for banks seeking to cut customer dependence on branches, which cost more to run.
"One of the first goals that we had when we decided to develop something for the iPad … was to avoid the frequent mistake of looking at the iPad as a large iPhone," said Alex Carriles, a senior vice president and the director of mobile and Internet strategies for BBVA, a subsidiary of Banco Bilbao Vizcaya Argentaria SA's Compass Bancshares Inc. unit.
BBVA's approach is still rare among banks that have released an app for the iPad, said George Tubin, a senior research director with TowerGroup in Needham, Mass. "I think most banks … just sort of ported their iPhone presentation over to the iPad," Tubin said, but "there are some banks that realize that touch technology and pads are going to be used differently."
A key difference, Tubin said, is that although the iPad is a portable device, it is less portable than a mobile phone, so banks may consider adding features that are less tailored to on-the-go use.
BBVA, which also has apps for Research In Motion Ltd.'s BlackBerry smartphone and devices running on Google Inc.'s Android operating system, wanted to leverage the iPad's characteristics, including its larger screen size and high-resolution graphics, Carriles said. "If you look at the banking applications that are available in the U.S. for the iPad, they just look like an overgrown iPhone application," he said. "There's nothing that really gets your attention."
BBVA Compass has taken a custom approach to the iPad, developing a banking app it says takes advantage of the tablet's properties. The most noticeable difference between the bank's iPad app, which it released Dec. 23 on the iTunes App store, and its iPhone app is its appearance. The iPad app's display looks like a bound book with an image of a staple on the center of the page and the image of a ribbon separating different sections.
One feature unique to BBVA's iPad app is a tool that lets customers scroll through images of cashed checks. Unlike its online banking site, the iPad feature does not require the user to click on and view individual checks one at a time.
BBVA's iPad app was the 19th-most-downloaded free finance app for the iPad as of Wednesday afternoon.
The iPad app also has graphic features unique to the device, allowing a customer to look at pie charts that show distribution of funds in various accounts. Some features, such as the check-scrolling feature, may be adapted to mobile devices at a later date, Carriles said.
That some banks would struggle to develop apps for tablets — or even to decide whether they should — is not surprising, Tubin said. Banks are hindered by stingy development funding, so many feel forced to be selective in the projects they pursue.
Sales figures suggest that tablets are at least a platform bankers should be monitoring.
In October, Gartner Inc. forecast that sales of iPads and other tablets to end users would reach 19.5 million units worldwide by yearend, with North America accounting for 61% of those.
Gartner estimated that sales would reach 154.2 million worldwide by 2013.
BBVA is "certainly in the minority" by having an app tailored to the iPad, Tubin said.
There are practical reasons banks may choose not to develop tablet-specific programs right now.
Compared with smartphones, tablets offer a much smaller pool of potential customers.
Smartphone sales to end users reached 80.5 million units worldwide in the third quarter, Gartner said in November.
"The iPad is certainly selling phenomenally," but "relatively speaking it's a very, very small portion of the market that actually has iPads," Tubin said.
Tablets are something banks' technology teams should be thinking about, "but I don't think there's any significant first-mover advantage," Tubin said. "I couldn't see a customer abandoning their bank to go to a bank that has a specific iPad application."
BBVA said it plans to add more features to its iPad app, such as bill payment and person-to-person payments, Carriles said. The bank is also considering developing for tablets from other manufacturers, including those running on Android.
"When we released the [mobile] application for Android, it took off unbelievably fast," Carriles said. "Many of our customers have Android devices."
