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Six Ways Mobile Applications are Improving the Financial Industry

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Mobile Applications Help Financial Services

With the evolution of smartphones, mobile apps have taken over almost every sector of the financial market. This surge is driven by the convenience of mobile apps, allowing users to manage their finances seamlessly. Tasks such as transferring money, paying bills, and making purchases have never been easier.

According to 2018 research shared by Statista, in the US, 90% of mobile banking app users check their account balances through the app, and 19% of users open an account directly from the mobile app. Mobile banking applications are quickly becoming an essential channel for banking customers to access financial services.

CACI predicted that by 2021, mobile banking would become the largest channel in terms of UK-based users, with applications overtaking physical bank branches worldwide.

In the US, mobile banking applications are used by 30% of customers according to the Omnichannel and Branch Banking: The Current U.S. Consumer Banking Environment survey. In China, the penetration rate of personal mobile banking stood at 57% in 2018.

Mobile banking applications are popular largely due to increased usage by younger adults. Business Insider Intelligence’s Mobile Banking Competitive Edge study showed that 89% of survey respondents regularly use mobile banking, a figure that rises to 97% among millennials.

Finance and Mobile Applications Stats
  • Google reports that 67% of users prefer financial apps that save user details to simplify future processes.
  • In 2018, 90% of US users used mobile apps to view account balances, according to Statista.
  • 17% use their mobile app to conduct admin activities on their accounts.
  • Think with Google statistics reveal that 6 out of 10 users prefer mobile apps for financial activities instead of websites.
  • There are 57 million banking users in the US today.
6 Ways Mobile Apps Can Help Financial Industry
  1. Better Security – Mobile apps require user authentication for every transaction, enhancing security.
  2. Investments and Trading – Financial mobile applications are not limited to banking activities. Users can also invest their money in these stock trading apps.
  3. Fast Alerts – Mobile banking apps provide users with real-time account alerts, allowing them to stay informed about activities such as transactions and account updates instantly.
  4. Cashless Transactions – Users can avoid ATM hassles. With a simple scan, transactions are completed.
  5. Banking Services are Convenient – Banking apps have made services more accessible for users. Now, users do not have to travel or look for the nearest branch to bank.
  6. Reduction in Operational Costs – When a bank invests in bespoke mobile banking applications as their leading channel for financial activities, they can significantly reduce operational costs. Mobile apps allow banks to go paperless, saving money, time, and natural resources. They also enable banks to reduce branch operations and maintenance expenses. Additionally, mobile app transactions are over 90% cheaper
More Benefits

Additional Revenue Streams

Fiserv’s 2016 study found that mobile banking applications can impact return on investment and customer engagement in several ways. Banks can generate additional revenue by integrating value-added services into their applications, such as loan offerings and insurance suggestions, which can be automated via push notifications. Customers who use mobile apps are more engaged with banking activities and utilize more products than branch-only customers. Additionally, if their experience is excellent, their loyalty to their financial institution increases.

Improved Customer Experience

With a well-designed, functional mobile app, banks can mssively improve customer experience. Banking apps are available 24/7 and easily accessible at all times. Customers can fulfill their banking needs wherever and whenever they choose. Also, personalized options on products or services can be customized to individual customer requirements.

Mobile Analytics are Powerful

We’ve reached a time where data is more valuable than oil. Using mobile applications, banks can collect and analyze a myriad of data from customer feedback. This data can be used to develop updated products and improve services based on customer habits and needs. This knowledge is incredibly powerful for service-oriented institutions; after all, the customer is king.

Notifications via Push and In-App

Mobile apps are incredibly effective for communication between banks and customers. In-app and push notifications can improve customer relationships and be used efficiently. They can also be used to disseminate critical information from the bank to the customer. Additionally, there is a much higher chance that a customer will notice and read a notification than a letter or email.

Financial customers desire a personalized, dedicated, well-designed, useful application from their bank. Today’s customers, who are attached to their smartphones, expect their financial institutions to be available on these devices. Combining high-security standards with rich and useful features helps banks retain customers and acquire new business

Contact Us for Custom App Development

If you are in the financial service industry and need to improve your existing app or create a new app for your business, Cenango is here to support you. Please contact us or book a session with our experts to get started on enhancing your digital tools.

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