StarNavi Blog - The Latest Mobile Banking Trends For 2020 Through 2021
Evolving technologies have caused a dramatic shift in the banking industry. Right from transferring funds and making transactions, most banking services are now available on mobile devices. Without waiting in long queues or even leaving our homes, we are able to manage our finances. Nonetheless, the rise of mobile banking apps changed the way customers handle finances online, for the better.
The advancements in technology paved the way for the current mobile banking trends. Banking apps integrated tools and features that make it easier to pay bills, make purchases, and manage a budget. Mobile banking apps remained the leading financial trend, with about 22.39 million US households utilizing its features.
What Makes Mobile Banking Popular?
People took notice of mobile banking because it is efficient, convenient, and safe. Banks choose mobile apps to make all processes smooth and comfortable for their clients. Besides, it's not so difficult to build an IOS or Android app. Mobile banking allows its users to take full control of their finances. With an app that comes in handy, they can monitor their balances, get account alerts, transfer money instantly, check deposits, and so much more. Their transactions are not limited to the banks’ working hours or the locations of banks and ATMs. Mobile banking apps provide round-the-clock services that can be accessed anytime and anywhere. Ultimately, the emerging mobile banking trends also make it possible to expect endless possibilities with banking apps.
When it comes to transitioning towards digital banking, security becomes one of the major concerns. Both web and mobile banking pose potential risks, but banking apps can be considerably more secure. Unlike online banking, mobile apps cannot be prone to phishing activities by potential hackers. All banking apps integrate multiple layers of security to prevent these kinds of threats. Almost all financial institutions of today utilize strict encryption to protect user data and privacy. Mobile apps are also less likely to encounter malware threats because of the massive proliferation of platforms. This assurance indicates that your mobile bank account is still secured even if you lose your phone and cannot be accessed.
Despite these promising banking solutions that mobile banking apps addressed, there are still innovative solutions in development. You definitely need to develop and test the solutions you like, that's the only way to understand your customer needs. Mobile banking is still in development, and trends appear from time to time on the market. Studies found that the greatest challenge of any mobile apps to date relies on ensuring improved customer experiences. That said, we highlight some exciting trends and features in the banking landscape to watch out for in 2020.
Mobile Banking Trends To Consider
Here are the latest mobile banking trends that many users love.
Voice command has become the latest trend in mobile banking this year. Many pioneering financial institutions like E*Trade, ING Direct Canada, and USAA integrated voice recognition programs in their apps. This intention is to help users with their concerns and queries. It also cuts down substantial costs for businesses since technology eliminates the need for additional staff. Consumers can find what they are looking for without facing a banking specialist.
The iOS app for USAA has a built-in voice command feature that acts as a virtual assistant for its clients. Users can ask questions and make requests on their smartphones. For instance, you can inquire about your spending habits, and the app will look into your data to gather relevant insight. They can provide you with relevant analytics and information about your spending habits within minutes.
Moreover, another breakthrough feature in development is ING Direct Canada banking-through-speech. With the help of their app, you can complete banking transactions like fund transfers via speech. Voice command did not become famous solely for its convenience. This feature also allows users to enhance security measures. Some mobile banking apps utilize voice recognition to authenticate a user once they log into their account.
Big Data Fraud Prevention
Another trend among popular banking apps is their capability to apply extensive measures to prevent fraudulent activities. Despite handling massive data from their users, they combat potential threats using multiple layers of security. Many banking apps implemented a robust multi-factor authentication procedure for every time you log-in to your account.
Many financial institutions also develop fraud monitoring and reporting. They have respective systems that take multiple data sources across different channels to track for any suspicious activity. Artificial Intelligence monitors electronic payments, cheques, and online account access to investigate any changes from your usual activity. They do this by conducting risk assessments based on advanced scoring models using user profiling and other techniques to detect fraud. Presently, cloud solutions like IBM Safer Payments and Simility provide services for these types of monitoring strategies.
Debt Paydown Services
Mobile banking apps made it simpler and more efficient to manage debts. Accessing your bank account on your phone increased transparency over your finances. You can also find innovative debt payment programs within banking apps to guide and assist you. Besides that, most of these programs can also round up purchases to the nearest dollar and use that remainder to pay down debts.
Features That Improve Customer Experience of Mobile Banking Apps
Managing customer expectations became one of the most significant challenges of the financial institutions of today. Features and tools become more advanced each day, and some cannot adapt to these drastic changes. Here are some of the critical elements that people want in their mobile banking apps.
ABCD is an acronym for artificial intelligence, blockchain, cloud, and data. An ABCD-powered banking app became the industry-leading solution for most challenges in the banking industry. This framework is introduced and utilized by Chinese eCommerce giants like Alibaba. The integrated social and transactional data found in this framework tailors to the customers’ needs. They streamline ABCD to assign modified risk scores to every user to promote personalized experiences. For example, ABCD is used to determine the adequate interest rates that fit the users’ lifestyle, needs, and capacity. With this framework, Chinese financial institutions have lent over $290 billion to some 16 million small businesses at a default rate of just 1%.
ABCD-powered mobile banking apps make it possible to set up and get approved to open a bank account. This process makes the process smoother and faster, which takes them approximately 5 to 15 minutes.
Know-Your-Customer (KYC) Process
The KYC process includes the necessary approach and strategies to assess and monitor their customers. It is integral for financial institutions to detect money laundering, terrorism financing, and other illegal corruption schemes. This process involves a series of security protocols to verify the customer’s identity. Mobile banking apps have to implement KYC procedures to protect their business and their users. KYC process involves the following:
ID card verification
Facial recognition and verification
Document verification (utility bills with proof of address)
Mobile banking apps authenticate this information upon the user’s submission. Before even going further to facial and biometric verification, they should verify whether the legal documents are genuine. After the identity verification process, banks capture customer demographic data, integrating into enterprise systems like CRM. This system is to jumpstart the customer onboarding process while networks administer further risk assessments.
A biometrics-powered mobile banking app is the cutting edge to streamlining a cutting edge security technology. Biometrics is collected and gathered in the program database to verify the authenticity of one’s identity. Most banking apps utilize different biometric data, such as:
As an example, PayPal utilizes the fingerprint recognition feature to help users access their bank account. Not only does it foster security, but it’s also more convenient than typing your password every time.
To further address growing customer demands, mobile banking apps offer marketplace banking, which allows them to present products and services such as retail and healthcare besides their core services. Most financial institutions partner without specializing companies to adopt this feature to allow third-party providers to connect to banks’ core financial systems and integrate them into their products and services.
Banking as a Service (BaaS)
BaaS (banking as a service) is one of the most prominent features amongst numerous mobile banking apps. BaaS allows third parties to integrate their products into the bank’s systems using Application Programming Interfaces (APIs). This feature enables them to build a banking product on top of the providers’ infrastructure.
Voice Commands and Voice Payments
Voice commands and voice payments rapidly entered the banking industry. The surge in voice-powered transactions reflects the projection of smart speakers worldwide.
Many mobile banks implement an in-app voice search to address queries and concerns quickly. They also introduced voice-based transactions that let you know your spending categories and outstanding bills. Before popular belief, it does not solely promote convenience. Voice-authenticated payments ensure security and smart verification in real-time.
Smart Spending Statistics
Mobile banking apps integrated artificial intelligence into their program for a fast-track solution. This integration allowed users to place full reliance on automated processes. At the same time, business operations lean on AI to manage tedious tasks and reduce potential errors. Instead of this, AI curates content for customers to improve their overall experience. They provide personalized solutions, including personal loan or credit card offers, investment advice, and relevant financial management webinars.
Banks face the most significant challenge today. They need to adapt to the ever-changing market conditions and customer demands continually. Succeeding in the banking industry can only be possible if you keep yourself informed and involved with the latest trends. If you are looking for web and software experts to assist you in this matter, the StarNavi Team is ready to help. Contact us today and see for yourself how we can help bring your business into the future.
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