A mobile phone is becoming one of the most popular channels for consumer banking. According to Deloitte, a confluence of certain factors has made that possible: the rapid adoption of cell phones, changes in consumer preferences, significant contribution to the banking app development, technology innovation. So, why mobile banking is so popular? Among the major reasons for using phones for everyday banking activities is the ease of use. Statista says that 90% of US consumers use their cell phones to check their balance, nearly 80% – to track recent transactions. The other reasons include making payments, transferring funds, contacting customer service, opening an account, etc. Let’s speak about online and mobile banking trends.
Obviously, many people prefer messaging customer service to calling them. Due to cloud computing and chatbots, customer service is available 24/7/365. Mobile banking allows checking your balance and transactions anywhere at any time without the need to turn on a computer. Also, you don’t have to visit a bank branch to open a new account. A few taps on the screen just from your home, and you’ve got your account.
Together with benefits for consumers, mobile banking brings some advantages for banks:
- Lower transaction costs
- Expanding distribution
- Providing more extensive access to products and services
- Increasing loyalty
- Executing advanced marketing campaigns
To seize these opportunities, banks invest in new technologies and follow the latest trends in mobile banking. The future of the industry is promising. Let’s see how digitalization is about to change the entire market. So, what are some trends in mobile banking?
Mobile banking trends for 2021 and beyond
The trends determine how banks will reshape their organizations to drive a mobile agenda and where they will focus their investments. Adhering to innovation, banks will also think about how they should continue to attract more customers. And ultimately, regulations influencing mobile banking will be of significant focus, as well. Below are the recent trends in mobile banking to watch for in the next few years.
Voice payments and voice biometrics
Amazon Pay VP says that “voice payments is a new era in commerce.” He considers that the most exciting thing about voice technology is the level of natural customer engagement companies can achieve. VP continues in his interview with CNBC: “Amazon Pay research shows that one in 4 consumers in Europe are ready to buy over voice. 40% of consumers think that smart assistants are going to be used in the next three years in the context of buying, whether it’s to discover or actually to buy or to support the purchase”.
Business Insider Intelligence predicted that nearly 78% of US adults would use voice payments by 2022. They consider that the adoption of voice commands in banking is fueled by three factors: the evolution of artificial intelligence, the growth of voice-powered devices, and market proposition for voice payments.
It is also predicted that next-gen voice assistants will replace the existing poorly written scripts to make the interaction between them and consumers sound natural.
Voice recognition has become a real game-changer for the banking industry. It helps not only to make payments but also to authenticate users. Voiceprint technology, also known as voice biometrics, allows users to access their accounts only with the help of their voices. A system recognizes the vocal patterns of a user and verifies the access.
Fraud detection and cybersecurity
Today, banks experience heightened risks to security, which is associated with the increased revenue and the growing number of financial services. According to Forbes, US consumers can lose up to 12 billion dollars in 2020 due to fraud activities with their cards. Thus, improving fraud detection measures in mobile banking and finding the new ones is one of the top priorities for bank CIOs.
Thanks to Big Data and predictive modeling of fraud, banks, and financial organizations can improve consumers’ data security significantly. Now, they can generate vast amounts of customer data available from different sources, from mobile banking history to social media accounts. Using historical data, banks can get a 360-degree view of each of their clients, which means they will get a clear understanding of the common usage patterns. It will result in better risk management and higher security.
Banks have no option but to react to the growing number of risks and embrace emerging technologies to stay competitive. They should also focus on enabling the confluence of convenience and security of customer experience in mobile banking.
Diceus develops comprehensive customer 360-degree systems for banks. See how we do this.
According to Business Insider, 64% of consumers will likely check the mobile banking features a bank offers before starting to use its services. Chatbots are one of the proper ways to deliver personalized user experience. Machine learning powers smart bots, which means that they can simulate how humans interact.
Chatbots deliver benefits at all levels. Consumers get faster and 24/7 support associated with instant response to inquiries and advice on personal finances. Instead of a human mentor, chatbots can also train the bank’s staff on how to work with software, communicate with customers, or follow the security rules. Another way chatbots help banks manage their operations is by measuring customer satisfaction. They provide many tools that offer people to rate their conversation with a chatbot or answer if it was useful.
Among the banks that were first to implement chatbots and conversational agents successfully are Ally Bank, the Bank of America, Wells Fargo, TD Bank. The reasons for smart bots implementation included serving tech-savvy users, reducing operational costs, replacing legacy communications channels like phones and emails.
Gartner predicts that in 2020, chatbots will fuel 85% of all customer service communications. Today, chatbots are good at answering FAQs, payment requests, and tracking personal spendings. Thus, it’s high time for banks to adopt AI and provide their customers with advanced options.
Money withdrawals without cards are not a new thing. Due to great convenience, they keep gaining popularity among consumers. People use Apple Pay or Google Pay to withdraw money using near-field communication (NFC) or app-generated codes (QR codes provided in a banking application). No card is required for both ways.
Some well-known banks like Bank of America and Wells Fargo offer cardless withdrawals. Among their top priorities is the high security of such transactions. 2020 is expected to be the year of security enhancements and broader adoption of the cardless method.
Over the past few years, consumers’ debt surpassed trillions of dollars. In the era of consumerism and overspending, when an average US household has a debt of nearly 137,000 dollars, paydown apps have become very popular. Many banks offer round-up mobile apps that can round down your purchase and send the difference to pay the debt or save some money. Usually, such apps provide solutions for breaking down consumer’s spendings, monitoring debt, and building the right strategies to pay off the debt.
What can banks do to provide people with user-friendly ways of paying off their debt? To meet the demand, banks should design and develop easy-to-use mobile applications or built-in features that allow people to track their spendings and debts. It would be nice if these solutions were powered with artificial intelligence to help people build workable plans.
Recently, banks were obliged to share the data about their customers with third-party providers of financial services. Open API allowed banks and fintech companies to unite their efforts and contribute to the creation of personalized experience and the introduction of new products and services.
This concept keeps being trending as it brings many benefits to consumers: from a more holistic view of personal finances to faster payments. How does it work? Imagine you have several accounts in different banks, as each of them has its advantages. For example, one bank has low transaction costs, the other – more attractive credit conditions. To benefit from using all the banks’ services, you choose a provider acting as a central point for all those services without the need to log in to each of the accounts.
Read more on the topic: 3 Reasons Why Every Bank Should Adopt Open API in 2020
What experts say about the latest trends in mobile banking
Exploring how the latest trends in mobile banking will impact the industry in 2020, let’s see what experts think about this.
The president of Sunwest Bank Carson Lappetito believes that incumbents should focus on technology. According to his words, mobile payments and better loyalty should become top priorities in banks’ strategies. Also he considers that fintech companies will sooner or later create unregulated depository risks in the industry because of the rapid emergence of “banking ledgers” taking customer deposits.
Mark Crichton from OneSpan considers mobile phones to become the common channel for financial operations. Bearing in mind the accelerating risks of fraud related to mobile banking, he says that security should be the number one priority from the very development process. All the processes, including authorization, opening an account, or using the services, should be taken into account when the app is being developed.
Our in-house experts also consider security one of the key pillars of mobile banking development. They proactively use the knowledge of contemporary trends in the finance industry to deliver mobile solutions enabled with the latest fraud detection technologies. We show our prospects and clients how artificial intelligence and machine learning can affect the entire banking infrastructure, improve customer retention and attraction, and boost revenue. If you are about to start improving your mobile banking app or need to develop one from scratch, we are here to help you.
What are some trends in mobile banking?
The latest trends in mobile banking include leveraging machine learning and robotic process automation (RPA) to speed up and automate the processes. Our team offers unique RPA-related services for banks. Another trend is open API that is a technology available for developers working not in your bank. This solution is great as it helps incumbent banks improve customer engagement and increase their revenue using other funnels. More about the trends.
How can I increase my mobile banking usage?
Mobile banking usage can be increased by implementing a state-of-the-art marketing and analytics platform that will give you a 360-degree overview of your customers. Since you integrate your systems with this solution, you will be able to track your customers’ engagement and behaviour. Based on that data, you can improve and personalize product and service offerings, increase customer loyalty, and develop new products faster.
What mobile banking technology trends are affecting banks?
Today, banks are significantly affected by the evolution of such technologies as RPA, AI, ML, big data, and others. Each of these technologies can help banks address the most pressing challenges they face: customer churn, ineffective processes, non-compliance, low ROI, long loan management procedure, etc. Our team knows how to overcome business issues using the right technology solution, so feel free to contact us.