Customers have switched from traditional banking to mobile banking apps as they are easy-to-use for everyday basic banking activities. According to Statista, 90% of users in the US use mobile banking apps to check their balances, view recent transactions, pay bills, and make transfers. Instead of using online banking services more and more users are switching to mobile apps.
As more people prefer mobile banking there is a change in consumers expectations. Consumers expect convenience, security, and added features that help improve their financial health. Financial institutions that do not meet these expectations risk losing customers.
Many financial firms offer compelling mobile banking experiences. Developing high-quality in-app user experience means banks can get customers more engaged with their finances.
Mobile App Role in Banking and Financial Industries
Here’s why you need to hire mobile app developers as mobile apps are playing a crucial role in fintech and banking -
1. Better Security
A financial app is a part of a larger ecosystem that includes banks and other fintech platforms. Sensitive data is constantly flowing to and from these systems. Hackers can readily intercept that traffic without strong infrastructure protection.
Hacking attacks demonstrate that simple security measures are insufficient to assure a secure user experience. You should consider improving the overall security of your app infrastructure.
Example - Bank of America for customer satisfaction stands out in security. They verify enrollment with a code and also provide transaction alerts for new payees, password changes and other potentially suspicious activities. If the bank detects suspicious activity, they will contact customers to verify transaction activity. Customers are not held liable for fraudulent mobile banking transactions.
Security is a big issue in financial technology, and blockchain could be the trick to make fintech software impenetrable. Blockchain-based systems can deter targeted attacks or lessen the effects of a compromise due to their distributed nature and transparency.
2. Bill Payments
As fintech companies invest a lot of money to entice users to use their UPI apps, data from their platforms could assist banks and other lenders improve their consumer lending operations. Fintech collaborations enable banks to extend loans to previously unexplored client categories by strengthening underwriting processes with transaction data supplied by payment applications.
Below is a fintech case study of how our developers helped a client deliver a platform that processes auto loans depending on various criteria change.
3. Cashless Transactions
E-wallets have become much more popular as a means of reducing transaction times. To make transactions more frictionless, e-commerce enterprises and all online marketplaces have linked mobile wallets. Since the advent of UPI, it has become much easier because the transfer is made straight from the bank account instead of a wallet.
4. 24x7 Banking Access
Advantage of using mobile apps in banking and finance is that they are available 24/7 and can be used from anywhere. Working hours and the locations of branches and ATMs are no longer constraints. You can instantly meet all of your banking requirements. The mobile app banking revolution is being fueled by new competitors.
5. Better Customer Experience
Global fintech organizations have finally accepted the importance of improving customer experience as one of their top business priorities. Fintech innovation is a hot topic in 2021, as those that fail to make progress in customer experience are caught off guard. Fintech firms should understand how customers use mobile apps, which marketing campaigns work best for them, how to maintain their loyalty and contentment.
In the financial services industry, providing outstanding customer service is critical. People are leaving their banks and credit unions for a variety of reasons, including poor service and financial advice. In the long run, addressing bad customer service could be far more beneficial. To improve the banking and financial services experience, banks should adopt new trends and techniques.
6. Omnichannel Experience
Omnichannel is about a reliable and continuous engagement between buyer persona and their financial organizations with numerous channels. Finance sectors can use omnichannel to not only meet customer's explicit needs but also anticipate their needs and preferences. According to a study by Google, before finishing a transaction customer typically shift between three to four screens. An omnichannel strategy enables you to use all available marketing channels to achieve an integrated and seamless customer experience. The customer, can change from app to website to social media, experiencing consistent branding and messaging throughout in a synchronized way.
Example - Singapore’s DBS bank has removed eleven processes online to reduce the need for manual intervention. They trained their staff on how to use digital tools.
In the financial services industry, providing outstanding customer service is critical. People are leaving their banks and credit unions for a variety of reasons due to poor service and financial advice. In the long run, addressing bad customer service could be far more beneficial. To improve the banking and financial services experience, banks should adopt new trends and techniques by hiring experienced fintech developers.
8. Mobile Wallet
People are using digital wallets to control every part of their lives. A growing number of companies are vying to be the go-to app for all things finance, combining a diverse range of payments, banking, credit, investment, and insurance products into a single platform, while others allow users to store important documents and access cards on their smartphones for everyday use.
The digital wallet category, with its extensive reach and everyday touchpoints, is having a significant impact on people's daily lives — but only if new solutions can deliver on reliability, scale, and ease.
Users can now access a considerably greater choice of financial resources and tools thanks to digital super wallets. They can still make payments, and they can also assist with investments, loan applications, account tracking, and more. Wallets will play a larger part in our financial decisions over time, becoming credible advisors and trusted sources of information for all thing’s money, thanks to powerful AI-driven analytics and personalized user experiences.
9. Virtual Cards
A prepaid virtual card is a digital card that you deposit money onto and use for online purchases in about the same way a physical card would. You can create a prepaid virtual card with its own expiration date and unique card number using our banking app.
Aside from not having to worry about your personal information being stolen or your card being lost, a prepaid virtual card can be issued instantaneously, is handy and quick, and can be used to make local or worldwide online purchases.
10. Trading and Investment
Traditional brokerage firms, investment firms, and fintech consulting organizations have all gone online as a result of apps that let people invest money. By launching the investment platform app firms want to pioneer in free trading. Many stock trading companies have seen an increase in demand. They're competing for a larger market share by gaining profit from existing savings.
Financial apps developed are offering more security and features such as voice banking, making the user experience convenient. Current banking apps are smart enough to assist users with almost every financial need, such as share market, loans, bill payments, grocery payments, and much more.
If you are planning to build a financial app, the competition is high. However, with increasing popularity of these apps, you can attract new customers by offering a few USPs. For building innovative app contact our developers.