How Mobile Apps Are Changing the Banking Industry

Mobile Apps Are Changing the Banking Industry

The mobile banking application is bound to be the most important channel:

For bank customers to access banking services.

Caci predicts that in 2021 Mobile Banking will be the biggest channel in terms of users in the UK. The application will follow high street branches to claim place number one. This study shows that the proportion of customers who use applications for banks will continue to increase in the UK for the next four years, reaching 71% in 2024. At present, it oscillates around 45%.In comparison, in the US, the mobile banking application is used by 3 out of 10 customers, according to Omnichannel and Banking Branch: the current US consumer banking survey, while the level of mobile mobile banking penetration in China is in 57% (as 2018).

Mostum mobile banking applications are mostly triggered by young people. According to the study of Banking Banking Banking Intelligence Intelligence Intelligence Intelligence, 89% of survey respondents said they used mobile banking, but this percentage rose to 97% large when it came to the millennium.

Don’t be mistaken that mobile banking solely for younger generations. Ninety-one percent of genes-xers and 79% Baby Boomers also reported to see the benefits of this type of service.

Why do people use a mobile banking application?
Customers switch to mobile banking applications because this is a tool that is easy to use for everyday basic banking activities. According to Statista, 90% of users in the US use a mobile banking application to check their balance, 79% do it to see the latest transactions, 59% to pay bills, and 57% to make transfers. They will use online banking for these services in the past, but the more users turn to the application.

Graph Reasons to Use Mobile Banking Applications
Users choose the mobile banking application as their main bank interface because the application offers a much larger personalized option. According to Accenture research 80% of mobile banking users will be willing to share data in return for personalized and comfortable services.

Another important benefit of using a mobile banking application (also present on web banking) is that they are available 24/7 and you can access it from wherever you are. We are no longer limited by working hours and branch locations or ATMs. You can fulfill all your banking needs instantly.

The cellular revolution in banks is also triggered by new competitors who need to be faced by the bank. Fintech companies such as Revolut, Monese, or N26 offer a very good cellular experience, which is a big challenge for traditional financial institutions. The organizations focus on the only operation – manufacture and account management, and money transfers are fully in their application.

Fresh, vibrant, and outstanding companies such as revolut attract a younger generation used to do as much as they can on their cellular devices. Visiting branches look strange for them. That is why the bank must embrace the cellular revolution. If not, they will lose younger customers.

Is the security problem in the mobile banking application?
The answer is simple: Not too much, at least from the user’s perspective.

According to a study with Accenture, only 28% of bank customers believe that mobile and online banking are not safe. Security was once a greater concern for the development of mobile banking applications but had changed. However, security must be a priority for every mobile banking application development company.

Banking applications collect a lot of sensitive data in one place. Personal data, address data, account balance and, of course, the money itself.

Other applications can only focus on beautiful designs and interesting features while not spending so many resources on security. In banking applications, users expect security at the core of banking experience – they want to know their money is safe.

The mobile banking application can be a good source of security encouragement for customers, because they provide the best security solutions. Login biometric and authentication of two factors now market standards – almost every activity in banking applications must be securely confirmed by the user.

What are the benefits of cellular applications in banks?

Security increase

Cyber-crimes is a considerable threat, without doubt, but banks can take advantage of the development of cellular applications to ensure a high level of security. Additional hardware security options make mobile banking applications safer than their online colleagues. Solutions such as biometric authentication is a big advantage of cellular devices.

Cutting operational costs

Developing a mobile banking application and promoting it as the main channel for banking activities can reduce bank operating costs. The mobile applications allows banks to become without paper, which saves time, money, and natural resources. This is also a way to cut costs for branch maintenance and operation. Last but not least, cellular application offers transactions ten times cheaper than ATM transactions.

Additional income stream

According to a study by FISN, a mobile banking application can affect customer involvement and restore investment in different ways. Financial institutions can generate additional income by offering value-added services in the application, such as retail offers or travel insurance. Customers use cellular applications more involved in banking activities than branch customers only and use more products. They are also more loyal to the brand if the cellular experience is quite good.

Better customer experience

By developing a useful and well-designed cellular application, banks can improve their overall customer experience. The mobile banking application is always available for customers – they are always within their reach.

Customers can meet their banking needs at any time and wherever they want. The personalized product and service options offered through a mobile banking application are far greater than those only in the field of branches or internet scenarios.

The cellular environment is one of the best business cases to utilize machine learning to improve user experience. ML models learn from individual user habits and activities. Applications supported by ML can offer insight adjusted properly for users based on what is most important to them. Such banking applications display relevant information in accordance with ML model predictions.

Cellular Analytics Strength

The mobile banking application is a great tool for financial institutions to collect and analyze various types of data and receive important customer feedback. They can learn more about customer habits and needs, which is a very strong knowledge for product development. Information and feedback collected through cellular applications can help massively improve the overall customer experience.

Better communication with push and in-app notifications

The mobile application is a very effective tool for communication between banks and customers. Push notifications and in the application can trigger certain actions and improve customer relationships with brands (when used correctly). They must also be used as a way to forward the main information, from the bank’s perspective. There is a higher possibility that customers will see notifications than that they read long letters or e-mail.

5 examples of the best banking applications

The mobile banking application can trigger a digital financial transformation of financial institutions. If it is designed and well-developed, they can make a true difference when it comes to user retention and customer life value. In the previous section of this material, I focus on explaining why developing banking applications is important.

Now it’s time to show 5 examples of the best banking applications. We take into account the following three factors when selecting the application:

  • They have high rankings on the Google Play Store and App Store.
  • They ensure the highest security level.
  • They help millions of customers manage their money.

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