Tech-savvy clients don’t wish to go to banks and have talks with real people. They prefer online tools or the ones that they get through mobile apps. They can do anything from checking the current balance to depositing on the go. A mobile phone is becoming a bridge that unites huge or small banks with their customers.
Why do people tend to rely on mobile apps? How can banks benefit from this trend? We’ll show you why a mobile-centric approach is important for you and what you will get after offering customers a new mobile app.
Mobile is not equal to online
Online banking is not a new issue for banks and customers. It’s a web application that can offer rich functionality, guarantee safety and security. A customer doesn’t have to install it and there’s a need to have a browser to launch the web app. To access the online banking system, you can use a phone, a tab, a laptop or a PC.
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What’s the reason for shifting from online to mobile banking? A great trend of the last decade is doing everything you can on the go. You can go home by bus and pay the bills while listening to your favorite music. Or you can ask for a credit if you suddenly see something valuable in a shop.
Why is it so important to be mobile-centric?
There are about 3.3 billion smartphone users in the world. The young generation considers the use of mobile phones to be more important than the use of a toothbrush. By using this channel of communication with the customer, banks receive benefits. Here are the major ones.
Customer acquisition. You can launch campaigns to attract new people to become your clients. It can be done through various ad campaigns in social networks, referral programs and so on. There should be an easy and smooth path from downloading the app to becoming a real bank client.
Analytics. You will get an opportunity to learn the behavior of every client. You’ll know what places specific clients’ categories visit, what they buy, how much time they spend on choosing a specific online service and so on. This information is highly useful for personalizing cross-selling and up-selling strategies.
Promotion and marketing. There’s no more need to print banners to attract people to visit bank branches. You can use various online channels to do this. It can be a push notification in the mobile app of your partner or an ad in a social network program.
Operational costs. Here you will end up with a significant reduction of operational expenses as there’s no more need to hire people to process each transaction (or validate it). You can implement AI instead of having real banks and people working in it.
Customer support. Big banks are already implementing AI for providing high-quality customer support. It’s available 24/7 and can solve all common problems that customers face.
How do banks expand their services with mobile apps?
Dealing with customers is going to a new level and pushes banks to think about how they can stand out. Here are a few issues that banks can offer to their clients with a mobile application.
Ease of use
People do not need to visit banks to complete a simple task. A mobile app can give customers:
- Control over accounts, deposits, credits, payments and so on. There’s no big reason where a client is located when using a mobile application. To check the account balance, a person should make a few taps. Clydesdale Bank lets its customers convert currencies in a moment while Tesco Bank lets clients check the balance without signing in.
- Push notifications. You can send some valuable information depending on the client’s location or current activity. You will only have to receive the client’s permission to access those pieces of information.
- Custom alerts. A client can get messages about the need to pay a regular bill or automate monthly payments.
- Pay wherever you go. There’s no need to take anything but the phone to a cafe, cinema or any other place. It’s easy.
Some clients may be happy with the possibility to visit the bank and have live conversations with people that work there. But the growing number of customers are happy not to ever visit the bank. Here’s what you can offer to them:
- Pay via a photo. A customer can take a photo of a bill or a cheque and the funds are transferred from the client’s account right in a moment.
- Voice commands. You can verify the client via voice. It’s quick and super easy. And it’s a perfect variant for those who always forget all the passwords.
- Live chats. You can have a look at how Barclays Bank has implemented this feature. However, it’s bad for those locations that are overcrowded or too noisy.
We have a growing number of mobile-only banks that don’t have land-based branches at all. All the services are provided via a mobile application. It provides users with cheaper services and banks with a reduction of operational costs.
Here are a few of such banks:
- Monobank, Ukraine
- Monzo Bank, UK
- Starling Bank, UK
- Revolut, UK
- Atom Bank, UK
- Tandem, UK
- N26 Bank, Germany
- Tide, UK
- Moven, US
- Holvi, Finland
- SOON, France
- Bunq, Netherlands
- Neat, Hong Kong
- digibank, India
- Xinja, Australia
A client downloads, installs the app, enters personal data and that’s it. It’s fast, secure and user-friendly.
No more paper
If you remember how banks worked 20 years ago, you could think of how much paper was wasted. Now we deal with all the banking solutions that keep the data in the clouds. No more letters to the customers to inform about the next payment or something else. All communication goes via an application and all the data is accessed via it as well.
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Shifting to a mobile can make customers worry about their personal data. Banks should provide app users with tangible evidence that no data will ever be accessed by third parties. 1customers can track the time when they’re online, what kind of device they are using when online and so on.
What’s the first step to developing a mobile app?
There are a few important questions before you start planning the development of your application. Once you answer them, it will be the right time to find a software development vendor.
- How do you plan to keep on with the rapid changes of technology stacks and mobile platforms?
- How will you verify the customer? How will you verify transactions through multiple devices and platforms?
- How can you reach your customers? What are the most efficient channels? Do you need to know their physical location and why?
- How do you plan to comply with all the regulations?
- How will you provide a smooth user experience?
- How will you eliminate risks?
- Are there any specific requirements regarding the mobile channel?
- Are you ready to put aside the legacy baggage?
Diceus – a reliable software development vendor
When you know why you need a mobile-centric approach, you are free to start updating your business model to the current market requirements. Diceus is a technology partner for banks with years of successful cooperation. If you plan to shift your focus on a mobile-centric approach, we’re here to assist you and offer top-notch solutions to meet your business goals. Let us know about your plans and we’ll get back to you in a short time.