The potential of the mobile market is increasing rapidly. Smartphone sales have long exceeded PC sales. And today, smartphones are becoming more popular than computers. As a result, businesses increasingly rely on mobile technology, launching their own mobile applications. What are the advantages of mobile banking and what are the business tasks they are helping to solve?
Today, remote services of financial institutions are in a kind of symbiosis.
You can download your bank's application to your smartphone and make virtually any transactions with your accounts if you have access to the Internet.
In rare cases, when using the application, you will need to confirm your identity by the phone call. On the other hand, banking programs are simple, multifunctional and have operational feedback. Thus, there are many mobile banking advantages and disadvantages. Their main advantage is in saving client's time, so they do not need to stand up to transfer money from one account to another, pay bills or make other manipulations with their money.
Financial mobilization processes can't be stopped. Especially if we take into account that the degree of involvement of bank customers in these processes is very high and constantly growing.
There are many benefits of mobile banking system, as well as many other remote banking services technologies.
1. Cost reduction
One of the advantages of mobile banking services is that mobile banking is effective in reducing the cost of paper, delivery/printing services, and the salary of additional employees.
Despite the fact that the mobile application does not completely replace the work of the bank’s branches, its launch significantly affects the queue length, the volume of cash transactions, the cost of maintaining the premises, etc.
Thus, a mobile banking app will help to reduce operating costs and increase efficiency.
2. Return investment
Mobile applications can improve the quality of customer service. For example, mobile banking benefits today is not just a balance check or transfer of funds. With such apps, it is easy to buy a ticket for a train, bus, plane, call a taxi, and so on. By giving their customers the opportunity to book a table, order food or pay for order through the app, a business gets a powerful tool to increase user loyalty.
Thus, customers are maximally involved in using such an application. With the use of mobile banking, the company can receive large incomes and reduce costs by 15%. But how does the bank recoup the investment?
- Customers use more services in the mobile app than in the physical branch. Therefore, banks receive 66% more revenue from online users.
- Instant access to finance and fast user interaction contribute to the fact that transactions take place much more often.
3. Improving the quality of service
Instant 24/7 services and personalization help to increase the quality of banking services and increase the trust of users. Thus, one of the benefits of mobile banking apps is that the customers are not limited to working hours and availability of ATMs and branches. Clients use the mobile bank app for the reason that they can always control the movement of funds in their accounts, monitor their safety, and use information services at any time of the day or night.
With a mobile phone, it is much easier to perform banking transactions and keep track of personal finances.
Mobile banking security is an extremely important indicator for customers. Therefore, banks use additional hardware to ensure maximum protection. Among them there are fingerprint scanning, retina, two-factor authentication, and traditional passwords. Encryption is always used for privacy and personal information protection.
5. Solving marketing tasks and gathering analytics
Banks have an opportunity to get to know their customers better. Mobile applications open up broad marketing opportunities - from conducting surveys to identifying various “categories” of users and targeting offers.
In the conditions of tough competition, banks have to create for customers such an application and service that will allow them to improve the level of comfort management. This implies the analysis of large statistical data not only of all expenses but also of all the transactions. Mobile banking will soon not only be able to analyze current expenses and incomes but also offer an instant balance change for the better due to the replacement of certain assets and liabilities - a more profitable deposit, on-lending, insurance, etc. In addition, applications will be able to take into account partner discounts and promotions, manage payments, and more.
6. Chat Bots
Today, many services actively use bots in WhatsApp, Facebook, and other messengers. A bot is a specialized online robot that can communicate with customers and provide necessary information on request. Many banks already use bots because they can significantly reduce the burden on call-center operators and facilitate customer access to information.
We are accustomed to using mobile banking for payments, replenishment of deposits and loans, checking balances and searching for the nearest branches. However, banking applications for smartphones have already become something bigger. There are services, the existence of which several years ago seemed impossible.
Specially created mobile applications are becoming more popular than online banking. Today, using mobile banking, you can order a taxi, buy tickets for transport and concerts. Biometric authorization is introduced into the applications, discount cards are digitized, access for non-bank customers is created, and the possibility of direct communication with a financial institution representative is added.
In addition to the above-mentioned mobile banking advantages, one can highlight the main innovations of mobile banking in recent years. Namely:
Ordering services and products
Mobile banking becomes a kind of intermediaries between online stores and service provider services. You can buy products and services from different companies using a banking smartphone application.
Discount cards library
In order not to carry dozens of plastic cards in your wallet, you can add them to mobile banking by scanning a QR code or a barcode of a discount card using a smartphone camera. Paying at the checkout, it is enough to bring a mobile phone with an opened discount card in the application to a special device.
The fingerprint scanner function is available only for phones that have an appropriate scanner. It adds an even better level of security to the banking and eCommerce applications.
Better customer support
Instead of long waiting for a connection with the bank operator, you can start chatting right inside the application.
Many smartphones of the latest models support an integrated NFC module that allows you to pay at the checkout without using a plastic card. The virtual “twin” of the customer’s bank card is in your mobile device. And to pay for the goods, you just need to tap with the phone on a special payment terminal, after having logged in.
Insurance and more.
To choose and order any type of insurance through mobile banking app is already a reality. Integration with insurance companies is an up-to-date and effective method of expanding the range of financial services and building customer loyalty.
Check out awesome LyvFit application, that allows users to pay for fitness sessions, and trainers to earn money right from the app!
Professionals of the mova.io company are willing to provide full-cycle mobile app development. Our specialists will help to determine the best strategy of mobile bank development and consult you about all mobile banking features and benefits if needed. We share our experience and orientated on the result.