How Mobile Apps Completely Transformed the Banking and Finance Sector?
Thursday, January 9, 2020, 6:00 AM | Leave Comment
Banking has been full of complicated tasks and hassles that common people always found extremely difficult to deal with.
The traditional banking systems largely suffered thanks to the documentation needs and technical complications associated with the financial sector.
Thanks to online banking and mobile banking system, such difficulties and hassles could be reduced to a minimum.
Mobile apps built for banking transactions and regular banking activities have emerged as one of the essential tech-driven advancements for modern people.
In fact, the popularity of mobile banking apps has contributed to the increase in banking transactions.
Thanks to mobile banking and a whole array of payment solutions and applications, digital banking has mostly taken over traditional banking transactions.
An increasing number of mobile app developers are advancing the cause of mobile banking in a never before way. Apps like PayTM are PhonePe are great examples of this undergoing revolution.
Before we explain how mobile banking apps revolutionized the banking and finance sector, let us try to understand why people prefer mobile banking apps in the first place.
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Why Do People Use Mobile Banking Apps?
Most banking customers prefer using mobile banking apps principally because these apps allow them to carry out banking transactions with extreme ease. As per the Statista report, a whopping 90% of US banking customers prefer using mobile banking apps for a variety of purposes, including checking balances. The same report indicates that an increasing number of customers are switching to mobile banking apps for ease of use.
Banking customers also prefer using banking apps because of the scope of personalized user experience. As per a recent report by Accenture, a whopping 80% of mobile banking customers don’t have any problem sharing personal data to get the advantage of personalized banking services.
The biggest impetus that pushes the growth and popularity of mobile banking apps is the round the clock availability of banking apps and the ability to access banking apps from anywhere and anytime. Thanks to mobile banking apps, there is no limitation imposed by working hours and branch and ATM locations on the banking transactions. The customers have banks right in their mobile device ready to help them carry out all transactions.
Now that we have explained the key reasons behind the increasing popularity of mobile banking apps, let us explain some of the critical mobile banking features and offerings playing the most significant role in shaping the mobile banking app revolution.
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Digital Wallets
Apart from the regular mobile banking apps, a whole ecosystem of instant payment solutions and digital wallets have emerged to help to make payment and transferring funds conveniently without any transaction charge. While PayPal has been there for more than two decades as an email-based online payment solution, with a dedicated app launched in 2010, it further helped to process online payment and transactions.
Barclays came with the Pingit app back in 2012, and it is now working as an independent banking app brand. This app allowing users to connect payment with phone numbers instead of bank accounts made transactions safer and effortless. Already Facebook Messenger and Snapchat incorporated money transfer features right within their banking apps. These chat app transactions are allowing people to transfer money with little effort as they carry out chat conversation.
Facebook and Snapchat have picked up this baton, in the US at least, by building money transfer functions into their instant messaging services. As long as you and the person you are talking to have linked your bank accounts to your messaging app, you can send money seamlessly as you chat.
Most of the leading mobile platforms, including Google and Apple, have come with their mobile payment apps with strong security credentials and extreme ease of use. Both Google Pay and Apple Pay are making banking transactions more effortless and convenient for mobile users more than ever before.
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Chatbot based Customer Support
Like every business for the banking and finance sector, they are also providing personalized support to engage customers is important. The intelligent chatbots powered with AI and machine learning technologies are transforming banking support for the customers.
By utilizing the AI, Chatbots banks are capable of providing round the clock support to their clients while maintaining focus on personalized banking features. Chatbots working round the clock and providing solutions and suggestions based on customer intent and context are making banking support more effortless and rewarding for the customers than ever before.
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Voice Payments
Voice commands to do things through mobile apps have now become common for most digital interactions. No wonder voice payments and voice interaction for banking transactions are also increasingly getting popular. Just by speaking to the banking app, customers can now carry out transactions and make payments.
Voice transactions made mobile transactions as easy as greeting someone with “hello”. As most leading banks are embracing voice transactions and voice commands for in-app interactions, in the future, we can expect voice banking to be the face of mobile banking apps.
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Blockchain-Powered Security
Blockchain has emerged as the most important security technology for banking, finance, and business applications around the world. Blockchain technology, which is known as a decentralized database for storing encrypted data across blocks, helps with unhindered access to data while maintaining optimum data security thanks to its “write-only” protocol that prevents any data tampering and deletion effort.
Banking and finance apps around the world are increasingly embracing blockchain technology to help role-based utilization of data while maintaining never-before data security. As an increasing number of investors are adopting cryptocurrency transactions, and as data security needs technology finer and equipped than password protection and encryption, Blockchain-based data security is getting popular for banking apps.
Conclusion
The above explanation provides only a few standout technologies and uses cases of mobile banking apps and how they brought a revolution in the banking sector. There are several other mobile banking features and use cases that equally deserve mention.
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