Technological disruption has impacted almost every domain including the banking sector. The growing dependence on Mobile devices has gradually led to the growing popularity of mobile banking apps. Gone are the days where fund transfers meant, standing in long queues, filling the cash withdrawal and deposit slips etc. Mobility has taken a new form with almost all banking transactions performable on a computer, laptop or a smartphone. And this includes checking account statements to paying credit card bills, utility bills and transferring funds etc. to list a few.
Mobile Apps have been transforming the banking sector. From going paperless to making transactions ultrafast, inclusion of mobile apps has brought in a tumultuous change in the banking sector. To add to it all, the consumers have been loving it. According to the 2018 Mobile Banking Study, “46 percent of U.S. consumers have increased their use of mobile banking in the past year. Nine out of 10 mobile banking users (91 percent) said they preferred using apps over going into a branch, while 68 percent of millennials said they could see their smartphone replacing their physical wallet.”
Mobile banking that began as an extension of the SMS service has come a long way too. While the devices have become smarter, the mobile banking apps have stayed ahead in every step, tackling security issues and providing users ease of use. But what other technological transformation do Mobile Apps bring to the Banking Sector? Just think about the possibilities that Big Data, AI, Blockchain, IOT bring to the banking sector and clubbed with mobile technology that would be revolutionary banking. So, let’s take a closer look at some of the popular transformations triggered by Mobile Banking Apps.
According to World Payments Report 2018, “Global non-cash transaction volumes grew at 10.1% in 2016 to reach 482.6 billion, and is forecasted to grow at a compound annual growth rate (CAGR) of 12.7% through to 2021.” Digital payment mode is on the rise, and with non-banking apps too joining the scene, the mobile banking apps too are adept in adapt.
In addition, there is the growth in Peer-to-Peer payments too, where customers can send or request money directly to each other through an app alone.
This is a new strategy wherein banks open their APIs to third parties and give those third parties access to the bank, whether that be access to data or access to functionality. In this way financial institutions can leverage existing systems to provide their own modified services and products.
What if money transfer was as simple as saying ‘Hello’? Voice Banking is gradually finding its way into banking sector, with Royal Bank of Canada and Barclays standing in the forefront by becoming the early adopters of this technology. So, basically, virtual assistant Siri can now pay our bills on your command. The security concerns aside, this change could be revolutionary, conveying a new angle to accessibility.
Communication is an important component of banking, and with Chatbots the users can easily resolve their queries in real-time. While the pre-programmed answers help in getting the customers comfortable, the use of predictive analytics and artificial intelligence (AI) can assist the clients in making important financial decisions. In addition, chatbots can also dabble as financial advisers, supporting the customers in managing the funds, controlling expenditure etc.
Budget management is amongst the biggest challenge for many. While there are separate apps for the same, what if the mobile banking app takes care of that facet too. That would make mobile banking app an all-in-one solution. While having a mobile banking app could assist in making good financial decisions, it could provide tips for thoughtful management, increase savings, improve investments and so on. In the long run that could help in increasing the brand loyalty, an important aspect for sustainability of the banking sector.
While this is a feature being fully utilized in digital marketing, clubbing context-based notifications with banking apps could be a bit tricky considering the privacy and security issues. However, if executed well it could be the next big thing in the banking sector, a trend that could take personalization to the next level.
With growing threats, breaches in confidentiality etc. Banking sector too has been upping its security game, an aspect reciprocated on the mobile banking apps too, in the form of facial recognition, fingerprint scanning etc. in addition to the regular login. And if reports are to be believed, even Voice security systems are being tested by trendsetters in the banking sector.
Where’s the ATM, does it have cash, would the trip be worth it? Time is of essence and customer satisfaction is important in banking service. What if the mobile banking apps could go a step further, act in as location-based service partners? Interestingly insightful right? The location based mobile app features can help in locating the nearest branch/ATM machine, and with proper digital updates can even predict the availability of cash.
Banking sector is an inevitable part of our lives, but the cut-throat competition in the sector calls for innovativeness and advancements unlike any other. While the inclusion of Mobile apps in the banking sector has transformed it in many ways, the real trick lies in sustaining the engaging banking experience and retaining customer satisfaction through continuous modification and constant readiness to adapt to the technological changes. What are your thoughts on the inclusion of mobile apps in the banking sector? And, have mobile apps really transformed the banking sector?
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