With the rise of smartphones, mobile apps have engulfed practically every market segment. Users quickly adopt mobile banking trends due to the simplicity and freedom of handling their accounts.
Meanwhile, the banking industry is undergoing a fast transition as a result of the general use of innovative technology. Financial institutions may automate laborious and repetitive procedures, improve client happiness, and maintain data security and regulatory compliance by implementing software solutions. For instance, transferring money to other accounts, paying bills, making purchases, and many other tasks are now easier and faster.
Per the Ipsos-Forbes Advisor U.S Weekly Consumer Confidence Survey, about 79 percent of Americans confirmed banking with their primary financial institution through the bank’s mobile app within the past 12 months. Out of the respondents of this survey, only 21 percent didn’t bank through their apps.
This article looks at the technological shift in the banking and finance sector and the latest mobile trends driving this transformation.
The Financial Mobile Banking Stats You Should Know
Let’s look at some quantitative data to better understand the real-world impact of mobile banking apps. You’ll also get a sneak peek at some of the ideas you might use to create a successful development strategy.
- Consider Google’s findings: 67 percent of users favor financial apps that save user information to make the procedure smoother in the future.
- According to Statista, the mobile banking sector will generate $693 billion in revenue in 2021, and this figure could increase to $935 billion by 2023.
- Users from the United States used the system to reorder checkbooks. The overall proportion was about 17%;
- According to another study given by Think with Google, 6 out of 10 people prefer to conduct financial transactions through mobile apps rather than through websites.
- Per a Statista poll, there are currently 57 million banking users in the United States.
Understanding What Mobile Banking is About
Before we get into the benefits of mobile banking, let’s look at what it is and how it works. The process of providing banking and financial services through cell phones is known as mobile banking. If we look back at the history of mobile banking, we can see that the service was previously reliant on SMS. European banks later launched mobile web banking in 1999.
Best Finance Apps – Features And Functions
The best banking apps are used for a variety of things, including cashless transactions, statement checking, address updates, and more. Mobile banking’s advantages are only available because of technological advancements. More mobile banking services will emerge as smartphone technology and app trends advance.
For the time being, let’s go over a couple of the existing features in detail for your convenience.
- Improved security – Mobile banking apps are safer than ATMs and traditional banking operations. Every transaction in these apps necessitates user authentication. As a result, the risks of a security breach are lowered. However, because it is an internet-based business, it has some drawbacks. As a result, security methods such as SSL and TLS are critical when designing mobile banking apps. Banks are also using fintech blockchain technology to add extra layers of protection.
- Trading and investments options – The use of mobile financial applications is not restricted to banks. Currently, customers can invest their money directly through these stock trading apps. Furthermore, the stock market is accessible to customers via apps, with features such as trading.
- Notifications and alerts – Banking apps have enabled consumers to receive real-time account warnings. In other words, users can rapidly learn about events such as transactions and account adjustments, among other things.
- Integrated bill payments – As the commercial sector increasingly adapts to the culture of cashless payments, almost all financial mobile applications execution this function expertly. Users can utilize this functionality to pay for utility bills, phone recharges, and other services. Furthermore, banks use high-security measures to ensure that bill payments are secure when designing mobile financial apps. These mobile payment apps are projected to become more popular over time.
- Account history and statements – One of the most significant advantages of mobile banking is accessing account statements and records while on the road. Users may see the amount and time of each transaction, as well as the specifics of each transaction.
- InstaAccount services – The InstaAccount function of mobile banking apps allow users to open bank accounts instantaneously, as the name implies. Furthermore, customers have the option of completing the verification procedure by providing relevant papers online.
- Customer support – The InstaAccount function of mobile banking apps allows users to open bank accounts instantaneously, as the name implies. Furthermore, customers have the option of completing the verification procedure by providing relevant papers online.
Some may view these features as benefits. However, the advantages of mobile apps in banking are far-reaching beyond these features. Let’s dive into some of them.
Importance And Benefits of Using Mobile Banking Apps
Expedient Banking Services
Banking apps have made banking services more accessible to people. Users no longer need to travel or hunt for nearby branches to complete tasks. That can be accomplished with the help of apps and the internet. One of the most important advantages of mobile banking apps is speeding up processing.
The surge in Cashless Transactions
The growing quantity of cashless transactions is one of the outstanding achievements of mobile banking apps. The trouble of finding ATMs to withdraw money is no longer an issue for users, and transactions are completed with a simple scan. Furthermore, compared to ATM cards, financial mobile apps are more secure. Likewise, with the use of IoT in banking, apps may complete cardless withdrawals. Financial mobile apps are also safer from illegal transactions because they require user authorization through the app to approve transactions.
Around The Clock Banking Access
Banking services are now available on the go, thanks to banking applications. Users can get their fast withdrawals or passbook updates regardless of a maintenance update or a long queue.
“Time is money!” they say, and banking apps are designed with this goal in mind, allowing customers to have a more convenient and speedier banking experience. During the Covid, the best benefit of banking apps was seen. Even in the event of a global epidemic, users might retain control and access to their funds. It assisted them in avoiding numerous unpleasant events that could have occurred due to a shortage of funds.
Better Grips of Expenses
Users can keep track of their money and manage it more easily with transparent transactions. Users may monitor where their money is moving with the current data of credited and debited amounts. Furthermore, smart banking apps can assist users in tracking their spending habits.
Financial bodies such as Wells Fargo and Bank of America allow you to immediately freeze your debit and credit cards if you misplace them.
Instant Transfer of Funds
Money orders are no longer in use. Users can instantly send money to persons in other countries using peer-to-peer mobile payment apps. Thanks to banks like Wells Fargo, users may utilize mobile banking apps to make international or domestic transactions with ease. Furthermore, users must go through the verification process for security reasons to complete the transaction.
It’s pretty impressive to consider how far the banking sector has come thanks to technological innovations. Even so, the horizon looks brighter due to the trends emerging today.
Trends That Will Define Mobile Banking in 2022
With possibilities to solve business-specific challenges through bespoke applications, there are the leading trends to look out for in the finance and banking industry in 2022.
1. AI-enabled Chatbots
An artificial intelligence bot is a software solution configured to do specific activities based on predetermined circumstances. Financial and banking companies can use conversational technology to speed up a number of manual and routine activities, cutting response times from an hour to seconds.
An artificial intelligence chatbot, for example, can respond to frequently asked queries, process several incoming requests at once, offer desired information, and route complex situations to the appropriate specialists or departments.
Chatbots in banking will save $7.3 billion in operational costs worldwide by 2023, according to Juniper Research, up from an estimated $209 million in 2019. During 2019-2023, the number of successful financial contacts is expected to increase by nearly 3,150 percent.
Bot integration in mobile banking apps, according to experts, will be the crucial avenue for the expanding adoption of conversational technology. In 2023, this will account for 79 percent of all chatbot engagements.
2. Cardless ATM Transactions
In 2021 and beyond, cardless ATM withdrawal will be one of the essential mobile banking industry advancements. Customers can connect with banking ATMs more easily because of NFC technology and QR code scanning advances.
People can, for example, scan their smartphone screens to access their funds and make payments. Cardless ATM withdrawal can help eliminate cloned card fraud and improve the customer experience.
3. Biometric Security
In the era of the coronavirus, security threats have evolved. Credit card theft grew by 104 percent between the first quarter of 2019 and the first quarter of 2020 according to the Federal Trade Commission. According to Credit Card Insider, over the same periods in 2017, 2018, and 2019, the number of fraud incidents was 27 percent, approximately four times lower.
Biometric authentication was created to increase the security of sensitive data while also making it easier to follow financial requirements. Biometric solutions restrict illegal access to accounts and devices by recognizing the face, voice, fingerprints, and other features. Furthermore, financial institutions can protect themselves from identity theft, credit card theft, skimming, and phishing.
4. Voice Payments
Another 2021 mobile banking technology trend to be aware of is voice payments. With the widespread use of digital assistants such as Siri and Alexa, the number of voice-based peer-to-peer transactions is rapidly expanding. According to Statista, this figure will reach 31% in 2022, up from 8% in 2017.
Financial organizations can increase user experience and retention rates by including this feature in their mobile banking apps.
5. Machine Learning Apps
Machine learning (an artificial intelligence category) is one of the most important digital banking technology trends for 2022 and beyond. Financial companies can examine user data to determine client demands using this cutting-edge technology. Banks can boost user engagement and income by addressing their concerns.
AI is currently gaining popularity in the banking industry. According to McKinsey’s Global AI Survey study, roughly 60% of survey participants indicate their firms have incorporated at least one AI capability.
For example, a company could create software to collect transactional data, inquiry history, and reviews. This information will be forwarded to the platform to be analyzed further. It is feasible to develop unique customer profiles, compute lifetime value, and define satisfaction and retention rates using machine learning algorithms.
6. Blockchain Technology
Blockchain is among the most important digital mobile banking trends of the future. According to a survey performed by Deloitte, 53% of C-level executives believe blockchain will be a significant element of their organization’s infrastructure in 2020. The number of transactions on the blockchain is likewise increasing. According to Statista, there were 70 million blockchain wallets in 2021, up from 10.98 million at the end of 2016.
Blockchain, which represents a decentralized distributed ledger, allows autonomous parties to conduct financial transactions without intermediaries. Because the system is built on cryptography techniques, financial institutions may more efficiently protect sensitive data. Additionally, blockchain offers benefits such as automated transactions and data integrity.
Evidently, mobile apps’ possible features, functions, and benefits seem endless with these emerging technologies and trends. For instance, a firm can protect sensitive data by utilizing machine learning, big data, and blockchain. It is feasible to detect client demands and preferences using in-depth analytics to address them as effectively as possible. You can guard against a range of dangers with biometrics, including illegal access, skimming, and phishing.
Banking and financial apps are becoming more secure due to technologies like blockchain. Voice banking and other features make the experience even more convenient. Thus, current banking apps can assist users with practically every financial need.
However, building such dependable mobile applications can prove a real head scratcher.
So, if you want to develop a financial app in this competitive banking business, you’ll require trustworthy and time-tested expertise. You may provide clients with your USPs, assure optimum security, and much more with the help of ISHIR mobile app development service.
Contact us today for a free quote or consultation.