Mobile Apps in Banking Sector: 5 Significant Benefits

Are you associated with banking or financial service-related industry? Then this article will show you how mobile apps are changing the landscape of the banking sector, why mobility has become a necessity in this industry.

Statista has shown in its report that by 2020, the number of smartphone users will grow beyond 3 billion. Now, with smartphones, the craze of using various apps is also increasing in an exponential way!

Well, the market research report has reflected the following facts.

• Since 2017, the total number of visits to different physical banks are down by almost 30%

• On the contrary, since 2016, the use of various mobile banking apps is up by almost 33%

Obviously, building a banking app offers several benefits for the app users including security, convenience, ease of access etc. Other than that, the banking industry can enjoy some great benefits of mobile banking! Let’s take a glimpse of these benefits below.

Lowers the bank’s overall expenses

• The bank can go paperless along with being environment-friendly

• Diminish the cost of printing and delivery

• No need to hire additional workers

• Mobile banking transactions are almost ten times cheaper than the ATM transactions

Thus, banks can enjoy reduced operational cost and increased efficiency.

Significant ROI (Return on Investment)

When the rate of mobile banking adoption increases, the attrition can be reduced up to 15% along with generating millions of additional revenue.

Various market research reports have shown the fact that for the mobile banking customers, the product holdings are much higher than the branch-only customers. Why? This is because the banking app users are more engaged with services provided by the banks.

Another significant reason for better ROI is that the mobile banking customers stay in touch for longer with the financial institutions.

According to the report made by ABA Banking Journal, immediate access to the financial information somehow can influence the additional banking transactions. This is the reason why mobile banking app users help banks to generate more average revenue. According to the report, banks generate almost 66% more revenue from these mobile banking app users.

Enhanced customer experience

Positive customer experiences are one of the most important things to any business and the banking industry is no exception to that. With mobile banking, you will be able to provide your customers with

• 24X7 availability

• Personalisation

• Instant addressing to the customer issues and needs

• Full control over customer finances

These actions ensure better customer experience, which will build strong customer relationship resulting in business growth and success.

Using AI (Artificial Intelligence)

Market research is showing that over 32% of various financial institutions are already using AI in their mobile apps. Let’s see how Artificial Intelligence can revolutionise the mobile baking industry!

• Chatbots can be used as human assistants

• Personalised customer service and notifications

• An easy and effective way to detect any fraudulent behaviour and patterns

• Various AI-based advising algorithms can be used to provide users with better financial planning

Advanced security

For the customers, security is one of the major concerns involved in the financial and banking industry. In terms of hardware security, mobile banking is more secure.

Today, to maximise the security, banks are using security solutions like biometric data (retina scan, fingerprint), gesture patterns along with the traditional security methods like passwords and the two-factor authentication.

More or less every financial institution today uses the encryption method in order to protect the financial privacy and information that guarantees hassle-free mobile banking. The security has reached this stage that even if the app users lose their phone, the banking data will remain safe.

Well, other than the aforementioned benefits, banks can utilise the benefits of

• Collecting customer analytics depending on which you can make your banking services better

• Retaining the app users with in-app and push notifications

So, ready to experience a transformation? A trusted app development firm and expert app developers can guide you better on it. Make an app that is available on all major platforms and reach your services to more customers ensuring business growth.

Johan Smith is a veteran iPad and iPhone app developer, who is presently associated with one of the leading app development firms in Australia. If you are looking for an expert mobile app developer in Sydney, get in touch with GetAProgrammer that houses a team of best Australian Android and iOS app developers.

Kimberley Black is an App Development expert and currently a senior tech consultant with GetAProgrammer.