- 1. From mono-functional to super-app
- Essential features of the mobile banking app
- 2. Platform for a Tech-Savvy Consumers
- 3. Mobile Payment Options
- 4. Focus On Cybersecurity
- Mobile Banking Security Features
- 5. Voice Payments
- 6. Smart Bots
- 7. Personalization of banking for the customer based on data
- 8. Ecosystems & Marketplace
- 9. Edutainment
- Final Thoughts
Can you imagine if you have to pay for your rent or share the bill and your bank still doesn’t have an updated application? Can’t believe it’s even possible? We neither! It’s obvious that in the year 2021 banks need to have mobile apps for their users. The сurrent trend in the financial services industry is the move to digital, specifically mobile banking. Our society becomes completely cashless what is evident after a year of a worldwide pandemic. According to a recent survey conducted by the American Bankers Association, 39% of bank clients managed their personal accounts through mobile banking apps — making it the most convenient approach to interact with financial organizations.
Looking ahead to 2021, here are key areas in which mobile banking trends are expected to evolve further:
1. From mono-functional to super-app
Mobile banking will increasingly become not an additional, alternative application with a minimum of functions that complements Internet banking. But a full-fledged channel of access to all banking products, operations, and services with different roles that are necessary to conduct all operational activities without being tied to an office, using a smartphone or tablet. As technology continues to develop, the utility of apps will no doubt also keep growing.
Essential features of the mobile banking app
- 24/7 access to your personal account
- Money transfers
- Fraud alerts
- Customer support
- Loan payments
- Bill payment alerts
- Full range of services that are of interest to clients (pay for public transport, order a tax shop, etc.)
2. Platform for a Tech-Savvy Consumers
Business Insider analysis shows 97% of millennials use mobile banking on a daily basis. Customers expect to do more with their accounts without additional help from bank employers. A service access process will be important as well. The user does not have time to think about where this or that service is located – everything should be as obvious as possible straight from the main screen. This should be achieved, first of all, through the minimization of interfaces, a color palette for different sections of the application, etc. It is easier and more effective to use existing markers of recognition than to invent your own.
3. Mobile Payment Options
Due to the pandemic, when even the WHO recommended switching to non-cash payment methods to avoid the spread of the coronavirus, the behavior and habits of users of the fintech market have changed dramatically. The level of popularity of various payment methods (contactless payments, e-wallets, online payments), financial literacy, and people’s awareness of all kinds of fintech products have significantly increased.
Cashless transactions have become almost obligatory in 2020 and this trend will evolve even more in 2021. Digital sales channels today must include the maximum variety of payment methods and a smooth journey for their users. The latest digital banking tendencies can also simplify converting different currencies. This allows consumers to proceed with transactions across the globe even more quickly and easier.
4. Focus On Cybersecurity
Security has always been a sensitive matter and an essential aspect of the bank industry. One of the main challenges today is mobile banking safeness. Cybercriminals also use the pandemic situation to their advantage. Therefore, in order not to fall victim to targeted attacks, both businesses and users have to follow the basic rules of cyber hygiene. Thanks to Big Data and predictive modeling of fraud, banks, and financial organizations can improve consumers’ data security significantly.
Several banks, for example, Capital One and Bank of America with the help of AI provide users with warnings of fraud alerts double charges and notifies of any additional charges if the subscription rate increases.
Mobile Banking Security Features
- Touch ID (fingerprint login)
- Facial recognition
- Voice recognition
- TAN/PIN systems
- Strong password
- Cellular network
5. Voice Payments
As people are highly conscious of security concerns, several banks have already purchased voice recognition as one of the methods for two-way authentication. Another technology trend in fintech is an application providing access to private banking through devices such as Alexa or Siri.
Alexa already pays off credit card bills, Siri allows consumers to transfer money to other accounts, and with Google Assistant you can shop simply with your voice from nearby stores. Business Insider predicts that a voice payments method will expand over the next years. Combined with machine learning, voice technology will make the future of mobile banking more responsive and user-friendly. Some experts expect the growth of voice payment services even faster than we think. Juniper forecast that voice commerce would rise to $80 billion in 2023.
6. Smart Bots
According to Business Insider, 64% of consumers will firstly check the innovations bank offers before signing contracts with them. Using chatbots is one of the proper ways to offer immediate answers and help to a customer and the most important personalized user experience. The advantage of this service is that it can also instruct the bank’s employers on how to communicate with clients, work with software and follow the security rules.
7. Personalization of banking for the customer based on data
It has been a trend in online banking for some time, but it’s not going away anytime soon. It is not enough anymore to simply understand who your clients are and what they need. Since more people use mobile banking apps, financial institutions use big data to study thousands of their customers’ data from sources like mobile banking history, social media, etc.
Personal consulting based on expenses, credit history or set goals will definitely increase customer loyalty. For example, the application will be able to send notifications that, taking into account expenses and income, the balance on the customer’s current account may not cover the expected activity (shopping, restaurants, taxi) for the next 7 days. Even more necessary tool in today’s world – future subscription notifications that tell customers when they’re being charged for say Netflix or when their free trial is over. Other warnings notify customers when their money may have been mistakenly written off twice by the seller or restaurant. By integrating these technologies into existing platforms, companies improve all their processes and systems.
8. Ecosystems & Marketplace
To keep it up financial institutions are turning their applications into ecosystems that meet all user needs. Financial transactions and user tasks that were accumulated within the authorized area of the mobile bank now begin the way to exit to previous mobile applications. Today, marketplaces have already appeared in mobile banks. Here you can take, buy movie tickets, subscriptions to entertainment services as well as pay for services – such as a doctor’s consultation. We believe banks will actively integrate mobile solutions with messengers and social networks both in terms of communications (and increasingly – using AI), document exchange, and transactions.
Today banking can be considered modern only if it successfully performs the role of a personal financial assistant, but the one that not only informs but also entertains. Let’s consider the term “edutainment”. Mobile banking today is about being a financial-edutainment personal assistant for its client. American Express and PayPal have already taught their bots to provide financial service and educate their customers if necessary.
Mobile banking technologies have one of the biggest influence on the daily life of anyone who deals with money. Today, in order to succeed in industry and keep up with soon-to-be cashless society, financial institutions have to adapt to the market’s latest trends and technologies, especially mobile banking. It is certain that these 9 trends not only will remain leading in 2021 but continue to expand even more.
If you are wondering how to develop a secure and cutting-edge banking app, contact us.