Contact us anytime to know more — Amit A., Founder & COO CISIN
Transferring money between accounts, paying bills, buying things, and other tasks have become easier and quicker.
According to a Survey conducted in the last 12 months, 79 percent confirmed that they had done their banking through their bank's mobile app. Only 21 percent of respondents to this survey did not bank via their Mobile apps.
This article examines the technology shift occurring in the banking and financial sector and the mobile trends driving it in a wide range.
Financial Mobile Banking Statistics You Should Know
We'll look at some numerical data to understand the impact of mobile banking applications in real life. You will also get a sneak preview of some ideas that you can use to develop a successful strategy.
- Google found that 67 percent prefer financial apps that save the user's information to streamline the process.
- The study estimates that mobile banking will generate $693 Billion in revenue. This figure could rise to $935 Billion in 2023.
- Users from the United States used the system to order checkbooks. Overall, the proportion was around 17%.
- According to a study, six out of ten people prefer to transact financial transactions via mobile apps than websites.
- A survey shows 57 million bank users are in the United States.
What is Mobile Banking?
Let's first look at mobile banking and its benefits. Mobile banking is the process of delivering banking and financial services via cell phones.
Returning, we see that mobile banking was based on SMS. In 1999, European banks launched mobile web-based banking.
The Best Finance Apps: Features and Functions
Best banking apps can be used for many things, including checking statements, updating addresses, etc. The advantages of mobile banking are only possible because of technological advances.
As smartphone technology and app trends advance, more mobile banking services will be available.
Let's take a look at a few of the features that are available for now:
- Better Security - Mobile Banking apps are safer than traditional banking operations and ATMs. Each transaction requires user authentication. The risk of a security breach is reduced as a result. However, It has some disadvantages as it is a web-based business model. Using security measures such as SSL or TLS is important when designing mobile banking applications. Banks also use fintech blockchain technology to provide additional layers of security.
- Options For Trading And Investing - Mobile financial apps are not only used by banks. Customers can currently invest directly via these stock trading applications. Apps also allow customers to access the stock market, including features like trading.
- Account Alerts And Notifications - Banking applications have allowed consumers to receive real-time account warnings. Users can quickly learn about transactions, account adjustments, and other events.
- Bill Payments Integrated - The commercial sector is increasingly adapting to cashless payments. Almost all financial mobile apps execute this function with expertise. This functionality can pay utility bills, recharge phones, or other services. Banks use high-security measures to protect bill payments when designing mobile financial application development. Over time, these mobile payment apps will become increasingly popular.
- Account Statements And History - Mobile banking allows access to account records and statements while traveling. Users can see the time and amount of each transaction and specifics about each transaction.
- InstaAccount Services - InstaAccount is a feature of mobile banking applications that allows users to open bank accounts instantly. Customers can also complete the verification process online by submitting relevant documents.
- Customer Support - InstaAccount is a feature of mobile banking applications that allows users to open bank accounts instantly. Customers can also complete the verification process online by submitting relevant documents.
These features may be advantages for some. The benefits of mobile banking apps go beyond these features. Let's look at some of them.
Use Mobile Banking Apps: Benefits and Importance
Mobile Banking Reduces Bank Expenses
Mobile transactions improve the overall efficiency of a bank by:
- Supporting the banks to go paperless and being environmentally friendly.
- Save money on printing, delivery, and other costs.
- The need for additional staff is eliminated.
- Offer transactions that are ten times cheaper than ATM transactions.
- Bank branches can be run at a lower cost.
Research suggests that mobile transactions maybe 50 times cheaper than branch transactions and ten times less expensive than ATM transactions.
This presents an opportunity to reduce operating costs while increasing inefficiency.
Return on Investment (ROI), a Significant Return
A study found that mobile banking impacts customer engagement and return on investment. Increased mobile banking adoption can increase revenue by millions and reduce attrition rates by up to 15%.
Customers who are engaged with mobile banking use more services
Mobile banking customers own more products than customers who only use the branch. Therefore, Mobile banking customers are more likely to be engaged with the companies and services.
Customers of mobile financial institutions stay longer
Attrition (or chunk rate) is when the number of clients decreases over time. Mobile banking users have a lower attrition rate than online or branch users.
Mobile customers are more likely to complete transactions
The ABA Banking Journal reported that immediate access to a customer's financial data could lead to additional transactions.
Users of mobile banking generate higher average revenues than non-mobile banking users. Banks earn 66 percent more revenue when customers use mobile banking than only branch-based customers.
Improved Customer Experience
Any business, even a bank, must strive to provide a positive customer experience. How a mobile app can enhance your customer experience
- 24/7 Availability: Mobile banking allows your customers to be free from the restrictions of working hours, ATM locations, and branch locations. Customers can have access to their accounts at any time by providing 24/7 services.
- Mobile Banking Provides Instant Satisfaction Of Customers' Needs: People appreciate mobile banking because it offers all services at their fingertips. Customers are loyal to financial institutions because of the instant gratification they receive from mobile apps.
- Personalization: Every business operation understands the importance of providing a customized customer experience. Personalization is crucial for banks to build trust with their customers. Banks can create unique experiences by collecting customer preferences and behavior data. It leads to increased customer satisfaction and credibility.
- Full Control Over Customer Finances: Mobile banking lets customers keep their finances in order. They can monitor their accounts, receive account alerts and transfer money instantly.
Improved Security
Customers are concerned about security. Mobile banking is more secure than online banking, even though both have their risks.
To maximize security, banks also use biometric data such as fingerprints, retina scans, and traditional passwords. Most financial institutions use encryption for the protection of financial data and privacy. This ensures a worry-free mobile bank.
A proliferation of platforms makes malware less likely to threaten an app. Your customer's banking data will remain safe even if they lose their phone.
Customer Analytics
You can collect and analyze metrics with a mobile application. You can then measure your service and improve the customer experience.
Metrics can help banks better understand the reasons why users use an app. All metrics can be grouped into three main groups: user engagement and satisfaction, acquisition, and performance.
Banks can focus on user experience by monitoring satisfaction and engagement. The number of users, session intervals, retention rates, abandonment rates, churn rates, and abandonment rates can measure engagement.
You can track the number of downloads and from where they are coming. This will help banks determine which marketing campaigns have been successful.
Finally, measuring performance can be extremely important because crashes or slow app loading can significantly impact user experience.
Performance metrics can help you determine why mobile banking apps have high abandonment and churn rates.
Retain Users By Using Push Notifications And In-App Notifications
You and your customers can both benefit from push notifications and in-app notifications. They inform customers of discounts, offers, and other relevant information.
The banks that have implemented this feature have an advantage over their competitors. For example, after implementing targeted in-app and push notifications, BNP Paribas showed a 60% increase in its AppStore rating.
What is the best type of push notification for your app? We have gathered the eight most common types of push notifications to help you promote your business processes.
Artificial Intelligence
Artificial Intelligence (AI), also known as machine learning, machine analytics, natural language processing, and algorithms, are all part of AI.
AI encompasses machine learning, analysis, natural language processing algorithms, chatbots, and more. AI technology has a major impact on mobile banking. Chatbots can help banks answer customer questions on a massive scale.
AI promises efficiency, security, and speed in the mobile banking industry. 32 percent of financial institutions already use AI, and 62 percent plan to in 2018 is interesting.
Customer Service and Personalized Notifications
Banks can use mobile beacons and device sensors to send customers personalized offers and alert them about new services based on the customer's location, context, and preferences.
Chatbots
Chatbots can save money in comparison to human assistants. They are also easy to use, even for customers needing to be more tech-savvy.
They prefer fast, personalized interactions and dislike emails and online forms. Bank of America, for example, has launched its Erica chatbot to help clients make better decisions. Bank of America clients can receive help via voice recognition and text messages.
Financial Planning and Advisory Service
AI-based algorithms that advise financial decisions use data analytics. They can make judgments about investments, insurance, and financial planning.
AI is more efficient than humans at complex calculations and analyses.
Fraud Detection
AI services are very effective in detecting patterns of fraudulent behavior.
They can detect fraud in real-time and even predict the future of fraudulent behavior. AI-powered algorithms also provide multiple layers for robust security in mobile transactions.
Expedient Banking Services
Apps for banking have made services more accessible. Users do not need to search for nearby branches or travel to them to perform tasks.
Apps and the Internet can help you accomplish this. Mobile banking apps can speed up the process.
Cashless Transactions are on the Rise
Mobile banking apps have achieved a lot, but one of their most notable achievements is the growing number of cashless transactions.
Users no longer have to worry about finding ATMs to withdraw cash. Transactions are now completed by simple scanning. Financial mobile apps offer greater security than ATM cards. Apps may also be able to complete cardless withdrawals with IoT.
Apps for mobile financial transactions are safer against illegal transactions, as they require the user to authorize transactions through the app.
The Clock Banking Access
Thanks to banking apps, you can now access your bank services on the move. Users can withdraw money or update their passbook quickly, regardless of maintenance updates or long queues.
Banking apps were designed to make banking easier and faster for customers. The best use of banking apps came to light during the Covid.
Users could still access and control their money despite a global pandemic. They were able to avoid many unpleasant situations that could have happened due to a lack of funds.
Get a Better Grip on Expenses
Transparent transactions allow users to track and manage their money more easily. The data on credited and deducted amounts can be used to track where the money is going.
Smart banking apps are also able to track users' spending habits. Wells Fargo, Bank of America, and other financial institutions allow you to freeze your credit and debit cards immediately if they are lost.
Instant Funds Transfer
Money orders have been discontinued. Mobile payment apps allow users to instantly send money from one country to another using peer-to-peer apps.
With the help of banks such as Wells Fargo and mobile banking apps, users can easily make domestic or international transactions. Users must also go through a verification process to ensure their security before completing the transaction. The banking industry has made great strides thanks to technological advances.
The horizon is brighter because of the new trends.
Read More: 7 Tips For Effective Mobile App Development
Five Examples Of Best Banking Apps
Mobile banking apps are a powerful tool for digital transformation. They can impact user retention and customer lifetime value if designed and developed properly.
In the previous section of this article, we explained why it is important to develop banking applications. Here are five of the best apps for banking. When selecting the apps, we took into consideration three factors:
- They have received high ratings on both Google Play and App Store.
- They ensure the highest level of security.
- Millions of customers use them to manage their finances.
Capital One
Capital One's mobile app allows customers to manage their credit cards, bank accounts, and home and auto loans from their personal mobile devices.
Users can check their account balances and pay bills. They can view payment details and activity and set up customized notifications. The app also has other features, such as locking a card within the app and integrations with smartwatches.
J.D. Power has rated This app as having one of the highest levels of customer satisfaction. The average rating on Google Play and App Stores is 4.7/5.
Bank of America
Bank of America offers its customers a banking application with many features. For example, it has an ATM locator and a virtual financial assistant.
J.D. Power praised the app's outstanding banking services. BoA also places a high priority on security. Users can feel truly safe because the app includes such solutions as fingerprint login, fraudulent activity monitoring, travel notices, and activating/deactivating credit cards.
USAA Mobile
The USAA application is an excellent example of a modern bank app. The app has nearly all the features that users would find useful.
Some features include account management and integration with Apple Pay and Google Pay. USAA Mobile offers outstanding security: You can log in to your account using voice, fingerprint or search recognition.
It is important to recognize the combination of convenience features and high security.
U by BB&T
U by BB&T offers all of the standards like transferring funds or depositing checks, but it also includes interesting features such as creating and managing goals and organizing your receipts.
This app is great for managing and planning your finances. This app has many features to help you stay on top of your finances by setting financial goals. This is why it stands out amongst the crowd of mobile banking applications.
Wells Fargo
Wells Fargo focuses primarily on corporate banking. The application of the bank focuses on tracking and analyzing investments.
It also offers consumer features such as paying bills, transferring checks, and managing your account. This is a great choice for SMBs and people interested in investing. You can track your open orders and analyze your investment.
This app offers news, real-time market data and quotes, and the usual mobile banking features.
Mobile Banking: Trends That Will Define It
The finance and banking sector will be dominated by trends allowing business-specific business solutions through bespoke applications in 2023.
AI-Enabled Chatbots
Artificial intelligence bots are software solutions that perform specific tasks based on predetermined conditions.
Financial and banking firms can use conversational technology to accelerate routine and manual activities. Response times are reduced from an hour to a few seconds. For instance, a chatbot with artificial intelligence can answer frequently asked questions, handle multiple requests at once, provide the desired information, and route complex situations to the appropriate specialists or departments.
According to research, chatbots will reduce operational costs in the financial industry by $7.3 billion worldwide in 2023.
This is an increase from the estimated $209 million. According to Research, the number of successful contacts with financial institutions is expected to increase by 3,150%.
The integration of bots in mobile banking applications will be the key to the adoption of conversational technologies. This will represent 79 percent 2023 of all chatbot interactions.
Cardless ATM Transactions
Cardless ATM withdrawals will be a key innovation in mobile banking. NFC and QR code scanning technology allow customers to connect more easily with ATMs.
For example, people can scan the screen of their smartphones to make online payments and access their money. Cardless withdrawals at ATMs can eliminate card fraud and improve customer service.
Biometric Security
Security threats have changed in the age of the coronavirus. According to the Federal Trade Commission, credit card theft increased by 104 percent between the first three months of 2019 and the first quarter of 2020.
According to data, the number of fraud cases was approximately four times less.
Biometric authentication is a way to protect sensitive data and make it easier to comply with financial regulations.
Biometric solutions prevent unauthorized access to devices and accounts by recognizing features such as fingerprints, voices, and faces. Financial institutions can also protect themselves against identity theft, card skimming, and phishing.
Voice Payments
Voice payments are another trend in mobile banking that you should be aware of. Voice-based peer-to-peer transactions are rapidly increasing due to digital assistants like Alexa and Siri.
This feature can help financial organizations improve user experience and retention by adding it to their mobile banking applications.
Machine Learning Apps
Machine learning (artificial intelligence) will be a major digital banking trend for 2023 and beyond. This cutting-edge technology allows financial companies to analyze user data to identify client needs.
By addressing user concerns, banks can increase engagement and revenue.
AI is gaining in popularity within the banking sector. According to the AI Survey, approximately 60% of respondents indicated that their companies have at least one AI feature.
A company, for example, could develop custom software that collects transactional data, history of inquiries, and reviews.
The custom platform will analyze this information. Machine learning algorithms can create unique customer profiles, calculate lifetime value, and define satisfaction and retention rates.
Blockchain Technology
Blockchain is one of the biggest digital trends in mobile banking. A survey found that 53% of senior executives think blockchain will play a major role in their organization's infrastructure.
The number of blockchain transactions is also increasing. The study estimates that there will be 70 million blockchain wallets.
Blockchain is a distributed ledger that allows parties to transact financial transactions independently without intermediaries.
Financial institutions can better protect sensitive data because the system is based on cryptography. Blockchain offers many benefits, including automated transactions and data security.
With these new modern technologies and trends, the possibilities for mobile apps are endless. Machine learning, blockchain, and big data can be used to protect sensitive data.
In-depth analytics can be used to identify client preferences and demands to respond to them more effectively. Biometrics can protect you from threats like illegal access, skimming, and phishing.
The Conclusion of the Article is:
Blockchain technology is making banking and financial apps more secure. Voice banking, among other features, makes the experience more convenient.
Current banking apps can assist users with virtually every financial need. But building such reliable Mobile applications can be a real headache.
Suppose you want to create financial application software in the highly competitive banking industry. In that case, you will need a dedicated team with proven expertise.
With the help of CISIN's mobile app development services, you can provide your clients with your USPs and assure optimum safety, among other things.
