The Age of Mobile Banking: AnInsightful Analysis

Banking CIO Outlook | Monday, November 26, 2018

A report from the BBA, a trade association in the UK banking sector, named “Way We Bank Now” has stated that most of the banking customers prefer online banking services. Even the common people are increasingly adopting mobile banking services to transact and connect with their bank. The study enumerates that more than 4 billion customers in a year or more than 7,610 in a minute, are engaging with the mobile banking services.

A study from Citi, called as ‘2018 Mobile Banking Study’, found that there is a rapid increase in the use of mobile applications by 46 percent of the U.S. customers in the past year. On average, eight out of ten people are using online mobile applications for their online transactions and other online banking services. Nine out of ten said that they want to get their transactions done through the mobile apps instead of going to a branch. And 68 percent of millennials want to see a world where the smartphones replace their physical wallets.

Balance checking, money transfer between accounts, and P2P payments are the main areas where customers use online banking platforms. Today, banks aim to acquire more customer database and continuously update their services. It is very important for these banks to retain their customers and promote brand loyalty. This is because of the high level of competition and the emergence of numerous modern banks. With a futuristic view, the stolen account retrievals, lost cards replacements, analytics-based financial insights, and in-app account openings will hold significant importance in the coming years.

Among the customers, many of them are still not ready to download and use mobile banking applications due to the fear of security threats and lack of confidence. Thus, organizations today create applications like Paytm and Tez Google Pay ensuring more security and simplicity. They also provide biometrics facilities in applications to ensure a highly reliable method for customers to confirm their security and identity.

Personalization in banking transactions through mobile applications is a key to improve customer engagements; organizations can achieve this goal by using data analytics to retrieve data on past transactions and interaction details of the customer, their choices, and habits. In this fast-paced world, customers expect their financial transactions and contacts to be done much quicker. Banks have to improve the speed in their services, simplicity, and more convenience in apps. As technology advances continuously, the developments in the way customers use mobile for banking services will improve exponentially to provide a seamless experience.

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