The report noted that customers could not manage alerts on their mobile phone and did not receive security alerts.
Globally New Zealand's banks received the lowest scores for service features despite two of the three banks being owned by Australian banks.
Of the three bank apps it rated state-owned Kiwibank's the highest.
It found Kiwibank's mobile access provided easy navigation, smooth workflow and helpful error avoidance messages.
The research found all three banks did well in giving customers multiple log-in options and a single sign-in for both mobile apps and websites.
But while the banks made it easy for customers to contact them and find branches on
their mobile apps they did not give customers useful money management tools, service features, or third-party offers.
It noted that the New Zealand banks were letting their customers down by an "almost complete lack of service features."
It pointed to Westpac in Australia doing a good job of providing contextual help by providing step by step instructions for how to make a transfer if they click on a help button and a video explaining what to do.
This would become more necessary as the complexity of mobile banking grew and customers who are less digitally savvy began using it, the report said.
The report also said New Zealand banks did not make researching and buying additional products easy despite growing numbers of New Zealanders using their smartphone to research new financial products.
The report said Kiwi banks were missing the opportunity to use mobile banking as an engagement platform.
"With firms like Apple Pay, PocketSmith, and Xero resetting New Zealanders' expectations about digital money and entrants like Harmoney, LendMe, and Squirrel trying to shake up lending, banks can't afford to be complacent.
"Digital banking teams must not only meet customers' current needs and make mobile banking usable, but also create new sources of value by anticipating what customers need next."
