How Mobile Banking Apps are transforming the Banking Sector
insight
Banking & Finance
By: Manish Shewaramani

How Mobile Banking Apps are transforming the Banking Sector

Technological disruption has impacted every domain, including the banking sector. The growing dependency on mobile devices has led to the increased popularity of various mobile apps. Today, everything is going mobile, and in this tech era, if you do not have a mobile application, you do not exist.

The rise of mobile apps has immensely influenced the banking sector. Gone are the days when you had to stand in a long queue to transfer, deposit, or withdraw cash. Mobility has transformed the way we used to do our banking transactions.

Instead of going physically to a bank, you can perform your relevant tasks on a laptop, desktop, or smartphone in no time through a mobile banking app. These transactions may include paying credit card bills, utility bills, transferring funds, and others to list a few.

From going paperless to making transactions ultrafast, integration of mobile apps has tremendously transformed the banking sector. Customers love doing their banking transactions globally in their comfort zone without physically going to a particular bank.

Thus, a majority of people prefer using mobile applications on their smartphones. It means they have also replaced their physical wallets with these banking apps.

As we now know the significance of mobile banking apps, let us understand how they have transformed the banking sector.

Key Features of Mobile Banking Apps to Consider

Cashless Payment

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 payments are on the rise, and with mobile banking apps joining the scene, it has taken the banking sector to new heights of providing benefits. Additionally, non-banking applications are also capable of offering a variety of payment services, which has increased the significance of mobile banking apps.

Moreover, there is remarkable growth in Peer-to-Peer payments as well, where customers can send or receive money with each other directly through an application.

Simple & Secure Sign-In

Security has become the topmost priority of any mobile app, and when it comes to a mobile banking app, it holds a critical significance. Multi-factor authentication is secure but its a time-consuming technology. It irritates most of the users, particularly when compared to authentication based on biometric data.

Biometric authentication technology includes examining physical metrics to identify and verify a person. It consists of recognizing a user’s voice, typing rhythm, and gestures as well. However, a lot of other characteristics can also be used for the same.

Intelligent Chatbot for Customer Support

Every business aims at providing personalized benefits to their clients. When it comes to banks, it is utmost crucial for them to offer support, professional consultation, or advice 24/7 to their customers.

Therefore, banks have utilized AI Chatbots to support their clients. Through an intelligent Chabot, they can easily answer hundreds of customers at the same time without letting them wait for a long time. Chatbots work around the clock, always polite, and never get exhausted. Wells Fargo Bank has taken the benefits of its customer support Chatbot.

Voice Payments

In the popularly emerging tech world, the perception of doing things is continuously changing every single day. Among the growing technologies, Voice Search has taken a significant place in our lives. You can ask your connected devices and smartphones to do any task simply by telling them verbally.

Now, in this scenario, what if transferring money was as simple as saying hello? Yes, you read that right. Voice banking is gradually finding its way into the banking sector, bringing immense benefits for customers. You can take examples of successful leaders in the banking sector in this relevance. The Royal Bank of Canada and Barclays are the early adopters of voice technology. Apart from security concerns, this change can bring a new revolution in accessibility.

Financial Planning

Budget management is one of the biggest challenges among many. There are several apps that facilitate financial planning. However, if a mobile banking app can take care of that facet as well, then it will be the cherry on the cake for customers.

Mobile banking apps assist in making the right financial decisions and also provide tips for thoughtful money management, increase savings, improve investments, and a lot more. As a result, it helps in increasing brand loyalty, which is an essential aspect of the sustainability of the banking sector.

ATM Locator

Earlier, it was tough to find an ATM if you wanted to withdraw or deposit cash. With the increased use of technology, you can get its locations on the Internet. However, with the rise of mobile banking apps, a few have come up with the ATM Locator feature to help their customers to find an ATM.

The Royal Bank of Canada has demonstrated how this feature works. Also, RBC has added a unique feature to its mobile app that allows users to locate the nearest branch or ATM with the help of Virtual Reality technology. The bank spokesperson reported that about 90 percent of users updated to avail of this feature on their mobile banking app. Also, there have been about 25,000 new downloads of the application since the time, the new feature integrated.

Advanced Security

Today, threats, breaches in confidentiality, etc are on the rise, and the banking sector has been upgrading itself to secure its customer base. Therefore, banks have started offering mobile apps that are coming up with security features in the form of facial recognition, fingerprint scanning, etc. apart from the regular sign-in. If reports are to be trusted, then the trendsetters in the banking sector are also testing the Voice security systems.

Notifications

Digital marketing has been utilizing Notifications feature to enhance the customer experience. Banks are on the path of coming up with context-based notifications, considering privacy and security issues. However, if this feature can be executed well, then it could be the next big thing in the banking sector. It will be a trend that could take personalization to the next level.

Geolocation

It is not worth traveling to an ATM where there is no cash. Time is money for everyone, and when it comes to bank customers’ time, it is more critical. It can be an utterly thoughtful thing if mobile banking apps come up with the location-based service. The Geolocation feature can help in locating the nearest branch or ATM with accurate digital updates, along with the details of the availability of cash.

QR Code Payments

Scanning QR codes directly from a mobile banking app is an efficient, fast, and convenient method of paying for goods and services. Additionally, all that is needed for users to do is to scan the QR code is a smartphone.

QR codes are not a new technological thing in the market. However, only a few bank apps have executed payments via QR code until now. For example, Dutch banks ING and Rabobank were among the first with their mobile app Payconiq, released in January 2018. It simplifies online and in-store payments with the help of a QR scanner inbuilt in the app.

Wrapping Up

The Banking sector has been an inevitable and integral part of our lives. However, in the cut-throat competition, it needs to come up with innovation and advancements similar to other sectors. With the integration of mobile apps, the banking sector has transformed in several ways.

Mobile banking apps have made our lives easier by empowering us to accomplish our critical tasks related to funds and finance hassle-free. The features we mentioned here are the most significant features of any mobile banking app, which you must know.

At Credencys, we aim at providing the highest level of services to our clients. Our team of experienced and skilled mobile app developers offers promising iPhone and Android app development services. You can hire a full stack developer from our team to help you build your business app.

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