The tentacles of disruption have extended to practically every industry, revolutionizing even traditional institutions, such as banks. Take mobile banking, for example, which we all know and love!
Let’s face it – mobile banking is one of the most delightful things ever. We eventually came to terms with the fact that one could process almost any banking transaction from the comfort of their home. Then this realization dawned – why not more? As a result, a myriad of new features and functions are being developed and deployed by banks worldwide, with some mobile banking trends gaining more traction than others.
So let’s explore some mobile banking trends in 2023 and beyond.
Recent Trends in Mobile Banking
Looking back, the year 2020 was a defining moment for the future of many spheres of everyday life. The banking sector was no exception, with all its financial solutions. The effects of COVID-19 and the resultant grounding of physical interactions led to a more decisive shift towards remote financial services, the chief of which is mobile banking. Banks had to scale their services to remain accessible to their customers. In fact, they made a number of digital and mobile features the cornerstones of their service offerings.
Three years down the line, mobile banking trends have become more apparent. Some digital services and practices have become widely normative across the banking sector. So here are some mobile banking trends to get familiar with.
- Biometric Banking: Mobile banking comes with its own risks. Password compromise, mobile hacks, and security bypasses are just some of the risks. Thus, the need to improve the security systems that come with mobile banking platforms has become evident. One of the most convenient solutions in the industry is biometric authentication. This not only establishes an incredibly secure banking interface but also results in less hassle for users. After all, instant face recognition or fingerprint scanning would likely be more convenient than having to input multiple passwords.
- Contactless Purchases: Contactless purchases are some of the most popular trends in recent times. This involves the use of specially designed payment mediums or ATM withdrawals, without any direct contact with the payment terminal. Contactless purchases were needed to reduce the contamination risks the coronavirus pandemic came with, and continued to evolve thanks to their convenience. According to a study by Light It Global, 20% of mobile banking users admitted to using contactless purchases more often post-COVID.
- Voice Recognition: With the development of AI-empowered mobiles, voice recognition transitioned from a distant dream to a renowned reality. Mobile assistants like Siri and Alexa can help you conduct a Google search, make a call, or even play music. This trend has made its way into the mobile banking sector, with voice recognition providing a convenient and savvy way to operate mobile banking apps. Use cases range from security authentication to interface navigation and transaction performance. This is an especially popular development among visually impaired users. No wonder this mobile banking future trend will gain even more acceptance with the passage of time.
- Chatbot Services: In spite of the acceptance of mainstream mobile banking, one of its significant shortcomings is the lingering risk of a glitch or lag in operation. Operational difficulties and errors, such as failed transactions, could be a pain for users. Thus, effective assistance is a must for any banking institution. A 21st-century solution is a chatbot service that provides 24/7 assistance. Chatbots are a growing trend across sectors, so it is no surprise that mobile banking is beginning to leverage its potential.
- Artificial Intelligence and Machine Learning: Is there any mainstream technological service that does not deploy AI and ML? Well, that might be harder to find than a needle in a haystack. Because these developments are integral to many features that make mobile banking possible. They provide a platform to facilitate the functionality of many features, such as chatbots and biometric authentication. Besides, they are crucial to the optimization of customer experience and banking services.
- Reward-Based Banking: Mobile banking channels are a substantial investment and would give many returns to banks moving forward. However, this is dependent on how well users adopt their banking services. One of the recent trends in boosting customer engagement and retention is by operating a reward-based system. Rewards and milestones incentivize customers to use mobile banking services more often – a trend that will keep growing.
Mobile Banking Trends | Conclusion
The truth is that banking has been revolutionized to the point of no return. Banks have transcended from being tagged traditional institutions to becoming one of the most technologically-driven services in the world.
Mobile banking is the crux of this new generation of services in the banking industry. As such, it becomes imperative to keep an eye on mobile banking and its trends. The recent trends in mobile banking can give us some insights into the future of financial services in an increasingly technological world, shaping up to be a story in which we will all take part.
You can also join this new world with a fintech provider like Tarya Fintech now!