Digitalized banking services are no longer an option but an essential function of the bank. It is a revenue generator, cost saver and a productive play. Let’s take a look at how the rise of mobile banking is shaping the banking industry.
Mobile banking started a long time ago, but the customers started to use mobile banking gradually. For instance, in Canada except their financial providers to deliver the customer experience value at the same time as other mobile app services. Even though their expectations are really high, all the banks are trying their best to satisfy their customers by offering the bank’s digital experience.
Let’s take a look at the statistics of mobile banking users in Canada; as per the Canadian Bankers Association (CBA):
- 398 million mobile banking transactions were recorded in the top six Canadian banks in 2017.
- 90% of Canadians believe that digital banking or mobile banking is more convenient and efficient.
- There is a 26% rise in mobile banking in Canada.
- 17% of customers claim to be ‘digital-only’ customers, i.e. they do not visit the branch in person at all.
Source: https://www.cba.ca/fast-facts-the-canadian-banking-system
Some more statistics offered by the Canadian retail bank are as follows:
| Areas of Importance | Statistics |
|---|---|
| Convenient Time | 90% of Canadians value banking at a convenient time. |
| Saving Time | 77% of Canadians value saving time. |
| Accessibility | 77% of Canadians value banking from anywhere. |
Mobile Payments are more important than ever. The number of banking app transactions is going up by 57% with more than 30 customer transactions every second.
There are more tasks performed by customers with time. They now have access to savings, credit cards and mortgage/investment accounts.
The number of times the customer visits the bank branches have reduced to almost half since the rise of mobile banking services.
Setbacks of Mobile Banking
One of the greatest setbacks of mobile banking is the security breach. Customers who wish to adopt mobile banking are a little wary because a breach in data or software could lead to a leak of their financial data in the wrong hands. Due to this reason, many customers do not find safe inputting their bank details on their smartphones.
This setback is being handled by all banks. They are ensuring that the best security system has been updated. They are vigilant about their customer’s account 24*7. They have invested more than 80 million dollars towards security systems.
Aside from the security setback, the customers should be able to access their bank details on various platforms, i.e. the iOS, Android and Microsoft. This will give mobile banking true flexibility and deliver optimum customer experience.
Further, mobile banking has to keep in trend of the different digital innovations and platforms. One of them includes, Blockchain.
Even though customers are able to check their account balances, book FDs, perform transfers, receive notification, etc., mobile banking needs to create a more hyper personalised customer journeys.
Ways to Improve Mobile Banking
Banks need to constantly come up with mobile banking strategies to promote it and encourage customers to use it. They need to level with the current trends, and step up the game or they will be lost in the current market competition.
Plan the future: Now that most of the banking systems have invested in security, it is time that they look into the future of banking. They need to look at a long term vision and embrace new technologies and platforms like Blockchain and integrate them in mobile banking.
Customer-focused solutions: FinTech start-ups are successful because they find the customer’s pain point and eliminate it. The ‘digital customers’ expect the bank to stay in sync with the current trends and continue to evolve with the growing market. The key to customer-focus solutions is personalization, i.e. targeting offerings.
Partnering and Collaborating: If Banks needs to keep in line with the technological advances in the market, they need to rethink their processes, partnership and collaboration. Keeping mutually beneficial partnerships and other forms of investment with FinTech companies could be largely beneficial for mobile banking.
The best strategy that they can adopt is to partner with experts in the mobile app development space to help transform organizational thinking and get products to market as internal operations transition.
A few key points to keep in mind are:
- Addressing customers’ financial needs rather than focusing on product profits and loss.
- Finding ways to solve the customer’s problems and eliminating them.
- Placing the customer in the centre of all the operations that need to be conducted
- Ensuring that the customer benefits as much as the bank by introducing mobile banking services
Ideally speaking, the bank’s business model should be based on principles of customer centricity, transparency, fairness and ease of use.
To create a mobile app or strategies for mobile banking, you can contact the App Scoop mobile app developers: https://app-scoop.com/contact-us.html
