With the proliferation of smartphones, banking sectors are leveraging mobile technology to attract customers
FREMONT, CA: Technological advancements have resulted in the transformation of industrial processes at an impressive pace. Emerging technologies are challenging the existing systems and their usefulness in the future. The finance sector has witnessed a massive transformation, too, in the past few years. Digitization is offering a new dimension to the banking processes. Online banking tools are enabling the customers to make purchases, manage their budget, and pay bills from the comforts of their homes. However, it’s the smartphone technology that has fueled the advancements of the banking sector to an entirely new level.
Here are some of the primary mobile banking trends that will reshape the banking world in the future:
Mobile Apps for Banking
Customers will be able to withdraw money just through their mobile apps. It means that they don’t need to carry their card for withdrawal. Thus the customers need not worry about hidden cameras or card cloning possibilities. Some ATMs will also offer the facility of using a QR code to punch in and proceed with the transaction. By facilitating mobile apps for banking, bankers can achieve complete customer satisfaction.
Voice search is an ever-increasing trend, catching the attention of bankers and financiers. According to a report, voice generated web search will account for 50 percent of the web searches by 2020. Voice search is already a transition from the conventional search methods that are all set to dictate the way customers will prefer to interact with the banking applications in the future. Some of the banks are also experimenting with voice-enabled technology. For instance, voiceprint technology is being used as a means to more securely authenticate callers. Some of the banks are also testing AI-driven bots for customer interaction.
Enhanced Biometric Authentication
Amidst the increasing risk of data breaches, biometric authentication is more of a requirement now. However, the main challenge for the banking sector is to develop a solution that stops the thieves from accessing a customer’s bank account, in case of a theft. Thus, the banks need to integrate more sophisticated biometric technology into mobile devices. Facial recognition and fingerprint scanner are expected to add more security to mobile banking applications in the future. Such incorporations will also increase the convenience level for the customers.
Artificial Intelligence (AI) and Big Data
Offering a banking app to the customers does not ensure their loyalty. The banking institutions must primarily focus on the AI algorithms that are operating in the background. According to a report, only 34 percent of the banking institutions reported that they were using available data in a way to enhance the customer experience.
Banks are also focusing on big data to analyze market and customer behavioral patterns. It’s a crucial technology that can reveal hidden customer insights, trends, and relationships. Increasingly financial institutions are realizing the potential of big data and AI. Many of the institutions have grand plans to leverage the massive data sets that are yet to be harnessed.
The Rise in Mobile Wallet
A mobile wallet (also referred to as a digital or virtual wallet) is already contributing significantly as the preferred mode of payment. Emerging as a convenient way of payment as it is a safer and more reliable means of payment. It doesn't include the overheads of the change money, which is often encountered during cash payments. With a lot of people using smartphones, mobile wallets will see more installations than ever. Mobile wallet services are also an encouragement to the use of cashless payments.
The current generation is least tolerant when it comes to hassles in services, not hesitating to switch to another service provider if it gives a better deal. Thus, the financial institutions that are quick to realize the demands and adapt their systems and services will have an edge in the times to come.