How Mobile Apps are Responsible for Transforming Financial Services
The financial services industry has seen tremendous change in the last few years. For ages, accessing financial services was only possible by visiting a physical branch. Today, technological disruption has forced each business/domain to own a mobile application. The financial sector is also booming with technologies and is introducing new features to provide a comfortable banking experience to its customers.
Mobile and digital apps have made it easier for everyone to complete transactions without any hustle. A Google study found that 40% of customers would like to replace their existing bank rather than bearing a not-good-enough mobile experience.
The smartphone has become a fundamental part of our daily lives and it has permanently changed the way people used to do finances. Mobile banking apps have become an important channel for customers to access banking services. Digital payments via mobile have left behind cash and card transactions. Let’s understand it deeply.
Why do customers prefer mobile banking and finance apps?
Across the world, 2.5 billion users use online banking. The main reason why customers are switching to online banking is the convenience provided to perform daily banking activities. Unlike fixed banking hours, long waiting queues, etc., online banking applications provide 24/7 services and can be accessed from any corner of the world. Another benefit of using mobile banking applications is customers get so many options for personalization.
In a world, where UPI apps like GPay and banking applications are attracting everyone because of simplified solutions, banks have to embrace the mobile revolution. Also, the newer generations don’t find it attractive to visit banks for every single task. Banks that are not adopting the digital era are likely to lose the younger generations.
What are the advantages of mobile apps in banking?
1. Enhanced Security:
By ensuring the highest levels of security in the mobile app development process, banks can provide secured applications. Additional hardware security options can be the biggest advantage in providing security.
2. Better Customer Experience:
Mobile banking apps are always accessible to users. The more useful and productive application you will build, the more your users will get encouraged to use your services. With great usable components of an application, customers can access the banking services at any time and anywhere. ML-powered applications can offer unique and effective personalization. Top-rated mobile app development companies work with AI & ML to build better models of personalization.
3. Power of Analytics:
Mobile banking applications can help financial institutions in collecting raw data and data analytics would help in analyzing the data proficiently and will present some beneficial trends in customer behavior. If analyzed properly, banks can understand their customer’s habits and needs which can be further used in product development. Also, depending on the behavioral trends, banks can ask their mobile app development company to amplify the customer experience through frontend designs and backend specifications.
4. Better Communication:
Banks and customers need to communicate in order to establish better relationships. Mobile applications bridge the gap between banks and customers by sending push-up notifications. Push-up notifications attract customers’ attention as lengthy emails are no longer an interest to anyone. You need to make content relevant and small in quantity to catch customer attention. Banks and financial institutions can use data analytics to personalize communication.
5. Additional Revenue Streams:
Few studies mention that mobile banking apps can impact effectively customer engagement and return on investments in multiple unique ways. Customers that use banking applications are more interested in banks’ products. If mobile experience is encapsulated properly, users using financial applications tend to be more loyal than users who do not use such apps. Resulting the more loyal customers for your additional revenue schemes.
6. Reduced Operational Costs:
When a bank starts working with digital solutions, it reduces the overall operational cost. Digital activities allow banks to go paperless which saves time and resources to work on those physical activities. Also, transactions that take place on mobile apps are much cheaper than ATM transactions.
7. 24*7 Services:
One amazing benefit of mobile banking apps is the banking services being available 24*7 on mobile apps while it is not practical in physical branches. Customers can access major banking services at any time and at any place. With just a few taps on the mobile application, customers access the required services online.
How Financial or Banking Apps Helps in Growing Your Business:
Mobile apps or websites have always benefitted each business anyhow. The phrase ‘bankers hours’ has always annoyed customers as there are only fixed hours to visit the bank branch and accomplish tasks. Customers used to visit branches for every task, even for the smallest task like transferring some bucks to another account. Financial applications are bringing customers closer to the banks by providing services all time. The future is all technological and leaves no room for tasks that draw energy and time out of customers. People will rather switch businesses to find comfort. If you also have a business that requires financial or banking applications, do connect with ChawTech Solutions as we provide the most robust applications with a transparent mobile app development process.
Final Thoughts:
This is not the end of the changes in Fintech industry. There will be more and future is unpredictable. Digital financial services have taken place in each field like lending/loan, Insurance, Trading, personal banking and much more. Financing with technologies has the potential to change the way people used to do deal with financial activities. Many trending technologies like BigData, AI & ML, Blockchain, etc. provide energetic possibilities that every business can utilize. A powerful mobile app development company is all you need to utilize those technologies and build a full-fledged solution for your business.