Mobile banking apps have undoubtedly become an important standard of service in the banking sector over the last few years. Managers of banking institutions have discovered that clients expect so much whenever they release new or upgraded apps into the market.
Over the last decade, the popularity of mobile banking apps has consistently been on an upward trajectory, especially among the millennials. By December 2018, the number of people who actively use digital platforms will increase to 2 billion. This figure represents about 40% the adult population across the whole world, from North America to Africa, and from Asia to Europe. The number of people who use online banking services will increase by 6% every year, while the number of people who use mobile banking apps will increase by 14%. This growing industry is getting a lot of attention from angel investors who are funding new apps or investing in existing apps.
Approximately 30% of the entire retail bank customers exclusively use digital mediums. This is the current state of affairs not only in the US but also in many other developed and developing economies.
The following are ways through which mobile apps are revolutionizing the banking sector.
Chatbots
Nearly all institutions in the banking sector make use of chatbots. They are integrated with mobile apps and facilitate communication between clients and institutions. Chatbots allow banks to communicate with thousands of customers in user-friendly ways. They make use of predictive analytics as well as artificial intelligence to enable clients to make greater financial decisions.
Additionally, chatbots help clients to offset debts, make various payments, minimize expenditure and check balances. Generally, banks use different versions of chatbots.
Interestingly enough, chatbots are being used in different languages. “Translation bots” allow communicating easily between languages. To learn more about how they work, check this article and infographic.
Banking-as-a-Service (BaaS)
Banking-as-a-Service extends services beyond the normal working hours and outside brick-and-mortar banking halls. Institutions in the banking sector are becoming a supplier and more flexible by integrating technology into all banking operations, by primarily sharing expert knowledge.
With Banking-as-a-Service, institutions can scout for excellent services and leverage on them to provide their own services and products. All these are possible, thanks to artificial programming interfaces. Sharing of latest technology and openness has enabled the banking sector to not only scale up their operations but also get easier access to improved and absolutely new
features.
Open API economy
Many bank customers have become technologically-savvy, so they expect banks to offer sophisticated mobile apps. We passed the era when app development companies created simple applications that could only provide equally simple products and services. Nowadays, banks offer value-added services in applications either independently or by working with providers of financial technology services. Accelerated programming interfaces (APIs) have made all these possible. APIs allow efficient, secure and reliable sharing of data between systems.
Consequently, it has become easier for app development companies to create absolutely new applications or incorporate new features into already existing mobile apps. All these can be attributed to the open API economy. Providing value-added services and products in mobile banking apps offers customers’ greater flexibility and more features, and this increases the overall number and frequency of transactions.
Institutions in the banking sector also take advantage of accelerated programming interface economy to efficiently deliver a wide range of digital services and products using third-party services and mobile apps.
Blockchain
Many of the challenges that discourage or prevent customers from making optimal use of mobile banking can be overcome with the use of blockchain technologies. Nowadays, many governments encourage people to embrace the use of electronic wallets and also opt for cashless transactions.
Blockchain makes sure that all transactions undertaken by customers are secure. The technology helps to prevent fraudulent schemes, price gouging as well as double-spending. Additionally, it enhances the efficiency of mobile payments.
The close relationship that exists between banks and their clients is without doubt shifting. The relationship is no longer being driven by large banking halls and smartly-dressed bankers. Rather, it is primarily driven by greater adoption of the latest mobile technology.
Approximately 40% of people across the whole world actively use smartphones. Additionally, more than four billion people globally actively use the internet to buy and sell commodities, access banking services, pursue education and network with other people.
There is no doubt that as more people adopt the use of smartphones, and as internet availability improves, app development companies will step up their game and come up with exceptional technological innovations. Going forward, mobile applications will undoubtedly continue transforming the banking sector.
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