As more people use mobile devices to access their financial accounts, physical banks are seeing their share of customers migrate away from them. According to Jeff Crawford, a senior consultant at First Annapolis, 80 percent of the largest financial institutions are now offering mobile banking services through text messaging, mobile web, and native apps.
Mobile payments
As more people are banking digitally, the banking industry is experiencing rapid growth and change. As a result, consumer expectations are also changing. They expect convenient and secure mobile banking services with features that promote financial health. Traditional banks that fail to meet these expectations risk being left behind in the competition. This article explores the evolving role of mobile banking, consumer expectations, and the trends influencing the future of mobile banking.
Mobile banking can help financial institutions increase revenue and reduce attrition, primarily through increased customer engagement and cross-selling. Banks can also gain valuable insights into spending patterns, which can help them make better financial decisions. This helps financial institutions increase customer loyalty, as mobile banking users are more likely to stay with a financial institution longer.
Chatbots
As the banking industry continues to adopt more digital channels, chatbots are increasingly becoming a viable option. These new technology-powered assistants can handle complex tasks and interact with consumers on a more human level. Whether a customer is applying for a loan or making a payment, chatbots can help.
The technology is becoming increasingly important to the success of mobile banking. It allows banks to provide a highly personalized customer experience. More than 1/3 of customers expect their financial institutions to know their names and other important information. And if they don't receive a personalized experience, they're likely to cut ties with the company.
While many consumers are getting frustrated with having to fill out the same information repeatedly, chatbots can save them the hassle. They also don't compromise on security. Chatbots rely on conversational elements to provide authentication and authenticity. They can also repeat previous activities and transactions with a single command, saving the customer time and frustration. Plus, chatbots don't require users to download a banking platform. With such convenience, a chatbot can help serve customers even while they're updating their status on Facebook or Instagram.
Virtual assistants
Mobile banking is growing in popularity, and many banks are implementing virtual assistants to improve customer experience. These intelligent virtual assistants can help customers save time and become more involved in the banking process. They also enable banks to modernize their platforms and processes. Almost 76% of Americans currently use a mobile app to access their bank's services. In a recent study conducted by Forbes Advisor, the findings showed that financial institutions should embrace technology that makes customers feel valued and appreciated.
While implementing virtual assistants, institutions should consider the specific needs of their customers. Choosing the right virtual assistant is critical in achieving a high level of customer satisfaction. This new technology has the potential to deepen the customer experience and provide additional value to existing customers. Virtual assistants will help banks mine customer data and anticipate future scenarios. By doing this, they can provide personalized advice to specific customers.
Location-based services
Location-based services are software services that provide users with services based on their geographical location. These services are used for a variety of purposes, from mobile commerce to navigation software to social networking. They also offer consumers the ability to customize their experience based on their location. Other applications for location-based services include personalized weather services and location-based games.
As customers continue to move toward digital banking, location-based services can be a powerful way to reduce the number of physical banks. For example, mobile banking apps can offer additional services to customers based on their location, such as location-based authentication. Such services will help customers save time and money by eliminating the need to visit physical branches.
FinTechs
As consumers become increasingly reliant on mobile banking, traditional banks are undergoing a transformation to become more responsive and digital. The decline in profitability has led many to reduce branch numbers and layoff workers. One recent example is Banco Santander's decision to close 140 branches in the UK, Russia, France, and Belgium. In the US, more than two thousand bank employees have been displaced. This situation is a warning to traditional banks: they must adopt modern technology to survive.
Today's mobile banking services are increasingly attracting younger users. Millennials, the largest generation on the planet, are digital natives and gravitate toward mobile services. The Economist reported that 85% of U.S. millennials are now using mobile banking and the number is expected to rise among younger generations.