Why Mobile Apps Will Play a Crucial Role in Banking And Financial Industries in 2023?
The use of smartphones has laid emphasis on organizations to release their mobile apps. And, there is no denying the fact that mobile apps make people’s lives easier. In light of this, banking and financial industries have launched their respective mobile apps to give their users, the simplicity and the freedom to manage their bank accounts.
According to Statista, almost 90% of people use mobile banking apps to check their account balance, transaction history, pay bills, and money transfers. In earlier years, people used online banking but since mobile apps are easier and user-friendly, people prefer using mobile apps instead of online banking.
Developing high-quality in-app user experiences encourage customers to engage in more and more finances. The technological shift in the banking and finance sector makes mobile apps crucial in 2023 and beyond.
Why Are Mobile Apps Necessary for Banking and Financial Industries?
Mobile apps have transformed the banking and financial sectors. People no longer need to go to bank branches and stand in long queues to deposit or withdraw money. There are numerous benefits of a mobile app and they are as follows:
- Improved security
- Online Trading and Investment Options
- Notifications and Alerts
- Integrated Bill Payments
- Account History and Statements
- InstaAccount Services
- Customer Live Support
Role of Mobile Apps in Banking and Financial Industries in 2023 and Beyond
Banking and finance mobile apps provide their users with a lot of functions and features which they can access while they are on the go. Quicker notifications, improved security, integrated bill payments, account history, and instant bank statements – have helped people make better financial decisions and improved their overall financial health.
Not only this, AI-enabled chatbots, cashless transactions, biometric security, voice payments, machine learning apps, blockchain technology, and more such advancements have taken the banking and financial industries by storm.
Let us learn more about these trends in mobile banking apps in detail:
Based on predetermined circumstances and FAQs, AI-enabled Chatbots cater to the needs of a customer looking for simple answers. This conversational technology has helped the industry cut down response times from hours to seconds.
The AI chatbot has helped the industry process several incoming requests at once, offer desirable outcomes and information to their users, and re-route complex problems to specialists or to the concerned department.
According to Juniper, these chatbots decrease the operational costs of finance and banking sectors by $7.3 billion by 2023.
Cardless ATM Transactions
As per the founder of SimpleMoneyLyfe, ‘Our Mobile Phones Have Become Our Wallets’. It stands true since Cardless ATM withdrawals are one of the essential mobile banking industry technological advancements.
NFC and QR code scanning technology have helped users to connect with the bank’s ATM conveniently for fast withdrawals and transfers. Besides this, it gives access to all your accounts which is convenient for people handling multiple accounts. Eliminating cloned card fraud and improving the customer experience, cardless transactions have become a new secured way that has worked in the favor of banking and the financing industry.
With the advent of newer technologies, it is essential that the industry amps up its security to ensure smoother transactions without the fear of fraud and theft.
Biometric authentication increases the security of sensitive data while making it easier for people to have safe and secure transactions. According to a report, global biometrics is expected to reach $8.9 Billion by 2026, growing at a CAGR of 12.8%.
Biometric solutions restrict illegal access to bank accounts and mobile devices by recognizing the face, voice, fingerprints, and more. In addition, financial institutions and banks can protect themselves from identity theft, credit card theft, skimming, and phishing.
Have you heard about making peer-to-peer transactions with the help of Siri and Alexa? The widespread use of such digital assistants has led banking and financial industries to make use of the technology and enable payment through voice.
According to Straits Research, the global market for voice-based payments is expected to reach $13.62 billion by 2030, growing at a CAGR of 10.98%.
The feature of voice payments in your respective mobile banking apps helps easy transactions without any hassles. With the help of digital assistants, you can pay your bills, recharge your phones, pay for hotels and flights, and much more.
Financial transactions without intermediaries – this is what Blockchain Technology brings for us. In finance and banking, the development of mobile apps using blockchain has helped create streamlined applications that enable buyers and businesses to trade online without any intermediate intervention.
The system is built on cryptography techniques, hence, it makes the transactions more secure and is great for autonomous transactions as well as data integrity. The technology offers numerous hidden benefits like improved efficiency, productivity, performance, and even uplifting the user experience.
So, the entire requirement of a gatekeeper in the loan and credit industry has been removed with the help of blockchain technology. Besides this, it is easier to borrow money at lower interest rates. Through advanced mobile applications built on blockchain technology, banks clear and settle financial trades faster and more securely.
Furthermore, the technology helps reduce the costs of operations and brings more real-time transactions between financial institutions.
Importance of Using Mobile Apps in Banking and Financial Industries
Mobile banking apps have made people’s life easier. It saves them from hustling and looking for nearby branches for a mere transaction, credit card bill payment, or bank account statements. Furthermore, the speeding up of processes has greatly revolutionized the entire industry. Along with this, there are some more benefits of using mobile banking apps, have a look at it:
The trouble of finding ATMs to withdraw money was real and mobile banking apps have helped people transfer money through quick scans. These apps are secure and they have user authorization processes that remove the possibility of any illegal transactions. In the near future, using IoT in the apps, cardless transactions will be smoother and more secure.
Waiting in the banks in long queues to get a passbook update or an inquiry about a recent transaction was too much to ask for. Banking apps help customers to have a speedy and convenient experience.
Keep a Track of Expenses
With a mobile app, you can check your expenses and manage them from anywhere. Moreover, smart banking apps help people reduce their spending habits.
The app makes you see your account statement in just a few clicks. And, help you report the misplacement/theft/loss of your debit or credit cards easily.
Instant Fund Transfer
Peer-to-peer money transactions are quite a thing now! Through a mobile app, one can transfer a large amount of money through RTGS, IMPS, or NEFT in a matter of seconds. All these apps are password protected and one needs to go through the user authorization gateway to access their banking apps on their mobile phones.
Robust mobile apps have reinforced the banking and financial industries and they have been progressing at a faster rate.
If you have a mobile app development project in mind, Visiontech can surely help you develop a scalable mobile application within the stipulated time.