The Role of Mobile Apps in Banking and Financial Industries

Mobile Apps in Banking

The banking and the entire financial industry are transforming every other day, thanks to custom mobile app development for finance management. Since many people use smartphones and are updated with the latest technology, they no longer have to keep long queues in the banks and financial institutions waiting to make payments or related financial transfers. An individual can now deposit, withdraw, or make a payment from anywhere without having to go to the bank physically.

What are the latest trends in mobile banking applications?

According to the latest mobile banking trends, mobile bank app users can expect the following improvements in mobile financial apps.

Blockchain technology

Instead of physical bank branches, mobile banking can opt for cloud-based banking that can perform all the tasks effectively.

Chatbots

Chatbots are artificial intelligence-powered platforms used for conversational purposes. They are already applicable in different sectors and are also applicable in the financial and banking sectors. The chatbots are effective in mobile banking as they help in personalization, data provision, and the need for speed.

Note: Generally, chatbots help with quick communication, thus helping users get quick solutions to their queries.

The use of biometrics in mobile banking

Since mobile banking apps need the highest security possible, biometric technology is an effective way to ensure all security measures are in place. Many apps now allow the use of patterns, iris scans, fingerprint scans, and voice & facial recognition biometrics as some of the ways to reinforce security.

The use of big data

In financial transactions, fraudulent activities are always on the rise. However, financial institutions can now access customer-centric information from digital and traditional sources, then provide a customized banking solution. Besides, using big data enhances the use of AI algorithm that helps to prevent fraud activities. Also, financial institutions can monitor a user’s history and banking trends through big data technology to point out any suspicious activity.

Touchless ATM technology

The pandemic outbreak created room for touchless transactions, including the ATMs. Several businesses now allow a quick screen scanning of the QR code that is completely touchless. This technology is also effective as it reduces fraud activities such as card skimming, among other frauds.

What is the role of mobile banking Apps in the financial sector?

Now that we know the latest technology and how mobile banking apps enhance the user experience, why are these apps effective in the financial sector? Let us explain below.

Accessibility

When a user wants to access any financial services, they can at any time, as long as they have the banking apps. This makes it easy and convenient for the users, and they also have access and total control over their finances

Improving the security

Whenever doing any transaction via mobile financial apps, there must be user authentication in every single step, unlike in the case of olden days transactions. This means that financial mobile banking apps are highly secured. Besides, banks are now using fintech software solutions as a way of strengthening the security layers.

Money Optimization

Managing money, especially for business people, can be a hard task, especially when doing it manually. However, with mobile banking applications, users can track all their spending habits, monitor their account status, know when to save, and determine when the account is at risk. The banks send notifications and regular updates to the users with mobile banking apps for effectiveness.

Cutting operational costs

With mobile apps, banks will have reduced costs of operation. For instance, when all users have mobile banking apps, banks will no longer need papers and related resources, thus saving money and time. Again, the bank branches will require regular maintenance and daily operational costs. However, with mobile banking apps, such costs are cut off since the customers can access all the services from their smartphones.

Improving customer experience

Well-developed mobile banking applications have features that enhance the user’s experience while handling different transactions. The personalization feature helps individual customers achieve different services in the comfort of their location without interruptions.

Cashless Payment

Different researches have proven that digital payments are rising steadily, thanks to mobile banking apps. The fact that other non-banking applications offer several payment services, this move shows how significant mobile banking apps are in the financial sector. Besides, the idea of cashless payments has made it easier for a person to transfer money to another via the apps, and this can save someone when in need of urgent cash.

Offering customer support

Mobile banking applications have made it possible to attend to customers’ needs with the urgency it deserves. This is especially possible through the use of chatbot technology, whereby all the customer’s queries are attended to promptly.

Conclusion

The rising technology has made many sectors achieve more and make life easier for people. One significant sector that is growing rapidly as a result of improved technology is the finance sector. The rise and growth of mobile banking applications have made it easy for people to handle transactions adequately.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.