Mobile banking is constantly evolving to meet users’ needs, adapting to solve problems and improve user experiences. It’s become more accessible, intuitive and trusted, and as such the groups of people who participate in mobile banking have grown. According to Forbes, as of May 2021 95% of GenZs, 91% of Millenials, 85% of GenXers, 60% of Baby Boomers, and 27% of Seniors were users of mobile banking.
The COVID-19 pandemic is responsible for much of the surge in the adoption of mobile banking. According to Fidelity National Information Services (FIS), new mobile banking registrations increased by 200%, plus an 85% rise in banking traffic in April 2020. This exponential growth happened organically as a result of lockdowns and lack of access to brick to mortar banks due to pandemic closures. People could not visit banks in person, so the next best alternative was to use mobile solutions to complete transactions.
Consequently, traditional and digital banks were faced with evolving their mobile services to meet increasing demands. The implementation of some cutting-edge technologies transformed the mobile banking landscape.
Here’s a look at how the mobile banking space evolved:
Security remains one of the major challenges of the banking sector. Customers worry about the safety of their data and sensitive personal information like credit card and social security numbers. Given the surge in cyberattacks (corporate cyberattacks spiked 50% in 2021), financial institutions had to implement strong security strategies. Organizations deployed big data and predictive modeling to reinforce data security.
Thanks to AI technologies the banking system has significantly evolved over the years. An uptick in machine learning played a leading role in using solutions like chatbots and voice commands to improve customer experience and streamline customer support processes.
Banks needed to find effective ways to communicate with customers and provide excellent customer service. Chatbots are among the top-notch technologies that improve customer service. Banks and fintech firms implemented these interactive smart bots to enhance customer experiences and streamline their business processes. And, chatbots are preferred by 40% of internet users worldwide to virtual agents. Have questions about adding a chatbot to your consumer engagement strategy? Connect with us today to learn how we can help!
Voice banking is one of the key applications of machine learning in the banking sector. It enables users to quickly find something with their voice search instead of spending time moving from page to page. Including voice recognition capabilities in mobile banking apps gained traction in 2021.
The COVID-19 pandemic also caused a spike in the growth of contactless payments. Mobile banking apps like Apple Pay, Google Pay, and others enabled touchless payments using technologies like radio-frequency identification (RFID) and QR codes.
What Consumers Are Looking for in 2022
The banking industry saw some ground-breaking technologies in 2021, but going forward, the expectation of customers is shifting. Here’s a peak at what consumers are looking for in 2022:
Financial Wellness Tools
Many consumers struggle with financial management. Users need financial management tools just as much as other features like payment solutions. These include budgeting, goal planning, debt management, and financial coaching tools, all housed inside existing mobile banking apps.
Customers want advanced security features, like turning off a credit card, inside their banking app. A survey conducted in 2021 revealed that 47% of consumers rated the ability to turn off credit cards in mobile apps as a valuable feature.
Convenience is one of the key drivers of mobile banking growth. It remains a major requirement for consumers. Users want and expect to perform transactions hassle-free with just the tap of a button.
Consumers prefer applications with the latest technologies that are naturally intuitive and full of contemporary, customizable features that make life easier. They also expect a company’s website to offer simple navigation, provide resources, and answer common questions. If you haven’t had a website update in the last six months it’s probably time for a consultation with a designer. Our experienced web development team can help!
Reduced Fees and Improved Customer Experience
Niggling fees to perform even the most basic operations or to receive standard information such as monthly statements feel exploitative and ring of poor services. As such consumers will be looking for fewer charges combined with exceptional service.
What Banks Can Do to Stay Competitive
Staying ahead of the curve in the finance industry comes with a lot of work. Banks should implement a robust framework to provide wellness tools, security, convenience, better customer experiences, and intuitive, leading technologies. The mobile banking industry evolves quickly and keeping tabs on new technologies can be overwhelming. As such, banks need to ensure their IT departments and creative teams are led by experts with many years of experience.
The mobile banking system has pivoted in this age of enhanced technology, particularly with respect to cybersecurity, AI technologies, contactless payments, chatbots, voice recognition and more. While these changes improved user experiences in 2021, consumers expect further technological strides in areas like wellness tools, overall security, reductions in fees, and elevated customer experiences. Organizations that want to stay competitive must be willing to address these expectations. At CSTMR, we’ve partnered with some fantastic companies to help envision and create impactful mobile and web design platforms for our clients. What can we do to help you reach your target customer and stay competitive? Schedule a free consultation to find out.