11 Latest Mobile Banking Trends in 2023 and Beyond

Can you imagine if you have to pay for the rent or groceries and your bank doesn’t have an up-to-date application? Sounds like a nightmare, right? A worldwide pandemic has made us so hooked on cashless transfers that some feel nostalgia while holding a bill. The current trend in the financial services industry is the move to digital, specifically mobile banking. It’s considered self-evident that in 2023 banks need to have mobile apps if they want to stay relevant.

According to a 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.

Half through 2023, we have a tremendous opportunity to examine the latest trends in banking technology that have already taken over the application market or are only expected to evolve further.

The Present and Future of Mobile Banking Technology

It wouldn’t be wrong to say that mobile banking is one of the most used and needed apps on modern mobile devices. With the growth of digitalization, accessing your bank account to view your balance or transit money via a few clicks without going to AMT sounds like a sure thing. The popularity of mobile banking among the Millennials and Gen Zers isn’t a surprise at all, not to mention the representatives of older generations.

It’s totally expected that the target audience for an easy, accessible and quick experience of managing finances is not confined to a certain age group. But what is the general picture of the mobile banking industry? Let’s take a look at the field itself: its mood, tendencies and the approximate future of mobile banking technology.

Mobile Banking Competitive Edge Study conducted by Insider Intelligence shows that 89% of survey respondents use mobile banking. The pandemic’s influence on the usage of mobile banking apps is hard to overestimate. For example, the 26% increase in mobile banking and 46% in payment applications during 2020 compared to 2019 are speaking for themselves. Nevertheless, the discovered convenience and importance of using mobile banking applications made many users attached to it.

Statista claims that the total revenue in the mobile app market is forecasted to reach $420.70 billion by the end of 2022. It will also show an annual growth rate of 6.58%, which will climb to $542.80 billion by 2026. With this immense and rapidly growing situation within the mobile app market, the demand for conveniently developed apps for completing personal necessities is not even close to decreasing. For instance, in 2021 the number of digital banking users in the US reached 197 million and is expected to reach 217 million by 2025.

According to Google, 6 out of 10 smartphone users prefer using a finance app over a mobile site to manage their accounts. People are actually fond of mobile applications. It’s a convenient way to satisfy their nonessential needs without bothering the bank itself. For example, we can check the balance any time a day in an accessible app with handy features considering the device’s operating system, etc.

So far, we can conclude that the future of mobile banking technology is bright and thriving. Some would also assume that physical cards are at risk of becoming foreign to us in a couple of years, just like cash did. Indeed, with such potential, mobile banking applications have many chances to take place in the “Users favorites” category in the App Store and Google Play Market.

Yet, it’s vital to know your potential client’s needs, preferences and likings. So that they won’t run from you once they download the app. Keeping up with the latest mobile banking industry trends is a key to users’ enjoyable+robust experience and banks’ profit+success.

Discover more about big data analytics in finance!

Latest Trends in Mobile Banking You Need to Know

1. From mono-functional to super-app

One of the most based banking technology trends in 2022 is the extreme functionality of the application. Mobile banking shouldn’t be an additional alternative application with a minimum of functions that complements Internet banking. But rather a full-fledged channel of access to all banking products. These include banking operations, services with different roles to conduct all desired operational activities simply by using a smartphone or tablet, etc. As technology continues to develop, there’s no doubt that the utility of apps will also keep growing.

Essential features of the mobile banking app:

• 24/7 access to your personal account
• Money transfers
• Security
• Fraud alerts
• Customer support
• Cashback
• 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 tech-savvy consumers

Customers want to do more operations with their accounts without additional help from bank employers, including a service access process. Usually, we do not have plenty of time to think 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, and so forth. It’s easier and more effective to use existing markers of recognition than to invent your own.

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3. Mobile payment options

When the WHO recommended switching to non-cash payment methods to prevent the spread of the coronavirus, the behavior and habits of the fintech market users changed dramatically. The result was the significant growth in the popularity of various payment methods (contactless payments, e-wallets, online payments), financial literacy, and people’s awareness of all kinds of fintech products.

Cashless transactions have become almost obligatory in 2020, remaining one of the biggest mobile banking trends in 2022, and will evolve even more in the future. Nowadays, digital sales channels must include the maximum variety of payment methods, providing a smooth journey for their users. The latest digital banking tendencies can also simplify converting different currencies. They allow consumers to proceed with transactions across the globe even faster and easier.

Learn about the latest trends in money transfer app development!

4. Focus on cybersecurity

Security has always been a sensitive matter and an essential aspect of the banking industry. One of the main challenges today is mobile banking safety. Alas, cybercriminals used the pandemic situation to their advantage. This made app users vigilant about all their online banking operations. 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 and double charges. They notify their clients 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. Biometric authentication

Unfortunately, using a simple PIN is not a guarantee to secure a mobile banking experience. Here come biometric authentication methods. Those include fingerprint reading, eye scanning, and facial recognition. All of those enable access to the application or even completing transactions without a need to swipe the card or enter a password. The mobile banking technology trend is making the way of accessing bank accounts much quicker and more secure since it is harder to replicate or hack.

6. Voice payments

People are highly conscious of security concerns. For this reason, 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 payments in banking even faster than we think. For instance, Juniper forecasted that voice commerce would rise to $80 billion in 2023.

7. Smart bots

According to Business Insider, 64% of consumers will first check the innovations bank offers before signing contracts with them. The usage of chatbots is one of the proper ways of offering immediate answers and help to a customer. 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 security rules.

8. Personalization of banking for the customer based on data

It has been one of the online and mobile banking trends for a while and is not planning on going away anytime soon. Naturally, more people use mobile banking apps. Thus, financial institutions utilize Big Data to study and analyze thousands of their customers’ data from sources like mobile banking history, social media, and so forth.

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 in case 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.

Financial data analytics to learn about. Click here!

9. Ecosystems & Marketplace

To keep it up, financial institutions are turning their applications into ecosystems that meet all the users’ needs. Financial transactions and user tasks that were accumulated within the authorized area of the mobile bank begin the way to exit previous mobile applications. Today, marketplaces have already appeared in mobile banks. Seriously, here you can buy movie tickets, subscriptions to entertainment services, and pay for services such as a doctor’s appointment. We believe banks will actively integrate mobile solutions with messengers and social networks. Both of those in terms of communications (and increasingly – using AI), document exchange, and transactions.

10. Edutainment

Nowadays, mobile banking apps can be considered state-of-the-art if they successfully perform the role of a personal financial assistant that not only informs but also entertains. So let’s consider the name of the next mobile banking industry trend “edutainment”. Mobile banking today is about being a financial-edutainment personal assistant for its clients. American Express and PayPal have already taught their bots to provide financial services and educate their customers if necessary.

11. Gamification

Banking may seem like a real adult, serious, and even dull activity, so how can we make our mobile banking application fun? You’re right — by gamifying it! This kind of interactive addition to the app will surely make users’ banking experience more enjoyable. Plus, it increases their engagement with the app itself. Gamification can be connected to loyalty/reward programs, which is a great way of analyzing customers’ moods and behaviors. It can also be used as a tool for offering different propositions and other possible useful features.

And come on, who doesn’t like little games while waiting for transactions to load, achieving an award or a trophy for buying coffee five times a week? Seriously, take my money!

Final Thoughts

Mobile banking technologies have one of the biggest influences on the daily life of anyone who deals with money. To succeed in the industry and keep up with the soon-to-be cashless society, financial institutions have to adapt to the market’s latest trends and technologies. Especially mobile banking. These 11 trends will indeed not only remain leading in 2022, but also continue to expand even more.

Consider Inoxoft Your Trusted Partner

Whether you are looking for a fintech software development company or a banking software development company, Inoxoft will provide you with expertise in a team of professional people and help your businesses grow!

Having experience in delivering trading solutions for world-scale traders, Inoxoft specializes in custom financial software development. Our products completely automate traders’ work and facilitate trade across the globe. Hence, every fintech company can rely on us in designing, delivering, and architecture for building cutting-edge financial software.

We offer fintech development services for businesses to resolve their automation challenges, leverage trading success and digitize banking services. Inoxoft is a software development company with broad experience in mobile and web development and 80+ tailored solutions used by businesses across the globe. The banking industry can count on our expert team who will perform the discovery of clients’ business needs and requests, market and trends investigation. Plus, we have provided a reasonable choice of tech stack, timely risk prediction and management. If you are wondering how to develop a secure and cutting-edge banking app, don’t hesitate to contact us!