Capital One has debuted a new app that lets you learn your credit score with ease

Credit.com

This story was delivered to BI Intelligence "Payments Industry Insider" subscribers. To learn more and subscribe, please click here.

Odds are good you only really think about your credit score when you see a cheesy commercial on TV or when someone asks you for it on an application.

But Capital One is trying to change that with the introduction of CreditWise, a new mobile app and online tool that gives users free information about their credit score, reports LowCards.com. The service debuted online and to iOS users on Wednesday, and the company plans to roll it out to Android next month.

In the past, Capital One had offered free credit score information through Credit Tracker, but CreditWise improves on that service in several ways.

For starters, CreditWise is available to any consumer over the age of 18 with a valid Social Security number, not just Capital One customers. The scores are also available weekly, while Credit Tracker only provided monthly updates. Finally, CreditWise uses the more accurate VantageScore 3.0 from TransUnion, which some lenders use when making borrowing decisions.

CreditWise could give Capital One the chance to expand among customers who primarily focus on digital. The app's financial management services could let Capital One promote its own products, as consumers can learn how to improve their credit score and run simulations on how their financial decisions would affect their score. Capital One could then serve recommendations directly to customers based on this information.

CreditWise could also launch Capital One into the fintech world. The company has started on this path by adding former tech executives to its board and staff. It was also the first U.S. company of its kind to debut an HCE-based mobile wallet for Android customers and was an early partner with wallets such as Apple Pay.

All of these factors could combine to attract younger customers who want to engage with their banks through their digital devices rather than through brick-and-mortar branches.

The millennial generation accounts for the greatest share of the U.S. population at 26% and the employed population at 34%, so it's easy to see why their behaviors and preferences will have a profound effect on the future of the financial industry, particularly with regard to the way financial services companies interact with their customers.

Third parties are expanding their role in providing services that consumers use to manage their money. And the more that role grows, the more it will disrupt the relationship between banks and their customers.

To paint a clearer picture of the future of the banking industry, John Heggestuen, managing research analyst at BI Intelligence, Business Insider's premium research service, surveyed 1,500 banked millennials (ages 18-34) on their banking behaviors and preferences — from their preferred banking devices, to what banking actions they perform on those devices, to how often they perform them.

All of that rigorous research led to an essential report entitled The Digital Disruption of Retail Banking that dives deep into the industry and details what its future will look like.

Here are some of the key takeaways from the report:

• The bank branch will become obsolete. It will be some time before the final death rattle, but improving online channels, declining branch visits, and the rising cost per transaction at branches are collectively leading to branch closures.
• Banks that don't act fast are going to lose relationships with customers. Consumers are increasingly opting for digital banking services provided by third-party tech firms. This is disrupting the relationships between banks and their customers, and banks are losing out on branding and cross-selling opportunities. For many banks, this will require further commoditization of their products and services.
• The ATM will go the way of the phone booth. Relatively low operational costs compared to bank branches, paired with customers' preference for in-network ATMs, makes the ATM an attractive substitute for bank tellers. But as cash and check transactions decline, the ATM will become nonessential, ultimately facing the same fate as the physical branch.
• The smartphone will become the foundational banking channel. As the primary computing device, the smartphone has the potential to know much more about banks' customers than human advisors do. The smartphone goes everywhere its user goes, has the ability to collect user data, and is already used for making purchases. Therefore, the banks that will endure will be those that offer banking services optimized for the smartphone.

In full, the report:

• Analyzes how millennials use bank branches and why - even though there are a large share of millennials who still use branches, making significant investments in these channels isn’t a good move for banks.
• Explains how mobile payments and mobile point-of-sale adoption by small retailers will make the ATM obsolete.
• Describes how digital channels, particularly the smartphone, will become the foundation of the bank-customer relationship.

The Digital Disruption of Retail Banking is how you get the full story on the future of banking.

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how the digital age will disrupt retail banking.