Exploring the Future of Mobile Banking and Emerging Trends
Introduction
Gone are the days, when our grandparents used to rush to the banks to perform their banking tasks. The 21st century has witnessed people performing transactions from the comfort of their homes outside of banking hours. Yes, mobile banking has truly revolutionized today’s banking scenario. Now be it any task, from loan application to fund transfer, everything can be performed efficiently using a smartphone with internet access. The way modernization is happening in the tech world, the upcoming years will see even more fascinating advancements that will altogether transform banking procedures.
In today’s blog, we are going to dive deeper into understanding mobile banking, further discuss current trending features, and visualize certain features that might be of great help in the near future.
Evolution of Mobile Banking
Mobile Banking has revolutionized since its inception and its advancement and versatility can be well traced by tracking its journey over the years. Here’s a general outlook on its evolution:
Early Days (1990s-2000s):
Mobile Banking started with basic features like balance enquiry, and transaction alerts. People were not accepting of new technological advancements due to privacy concerns.
Introduction of Mobile Apps (Late 2000s):
The initiation of smartphones led to the development of mobile banking apps. Banks started offering standardized facilities such as account balance checks, fund transfers, and bill payments through dedicated mobile apps. Multi-factor authentication method was introduced as a security concern measure.
Expansion of Features (2010s):
Started offering more modernized features such as mobile check deposits, cardless ATM withdrawals, and person-to-person (P2P) payments. Investment management and loan applications through smartphones came into existence.
Focus on User Experience (2010s-Present):
Mobile banking has undergone a huge transformation in this decade. The applications started focusing more on the design of the application that ensured smooth navigation, user-friendly interface, visually appealing design, personalized features, etc.
Emergence of Mobile-Only Banks (2010s-Present):
The emergence of the trend of neo-banking started in this decade. These digital banks performed only through digital applications without relying upon physical branches. They are highly entertained by tech-savvy customers who seek convenience and enhanced digital capabilities.
Integration with Emerging Technologies (Present-Future):
The banking facilities are now integrated with Artificial Intelligence, Blockchain technology, Predictive Analytics, etc. All these advancements are a part of the present-future scenario that will transform the entire mobile banking process. Examples of mobile banking include Gpay, Apple Pay, Paytm, etc.
26 Trending Features of Mobile Banking
Biometric Authentication
The importance of privacy and security is gaining momentum in recent years. So mobile banks had to take special measures to improve the security of the payment and transaction procedures. Biometric Authentication uses fingerprint, iris imaging, facial recognition, and voice recognition mechanisms to improve the security of the entire transaction process.
Personal Financial Management (PFM) Tools
Humans are heavily dependent upon the applications to track and monitor everything be it their health, wealth, or feelings. So to improve the lives of humans, mobile banking installed unique features within their applications wherein the users can track and monitor everything related to their spending and purchase habits. They can set a goal, prepare budgeting, and also identify reasons for overspending. This would enable them to identify the possible shortcomings and accordingly take measures of cost-cutting or healthy spending. These tools are designed to meet specific customer needs and offer personalized offerings to the customers.
Personal Financial Management (PFM) | Technisys Digital Banking Solutions
Cardless ATM Withdrawals
Users can now automatically pay without using physical cards. The application of the QR code created a seamless payment mechanism where the person can automatically transfer funds to the receiver. It has also enhanced safety wherein the customers don’t have to carry physical cash to markets, thus avoiding robbery and theft activities.
Contactless Payments
Contactless payments allow users to pay by simply tapping their smartphones or smart watches through a contact-enabled payment terminal. This methodology offers a faster and more efficient measure of transferring funds. Some examples include Apple Pay, Samsung Pay, etc.
Why Tap-to-Pay Is Safer Than a Credit Card Swipe | WSJ Tech Behind
Instant Balance
This feature allows users to check their balance instantly without logging into their bank accounts. This is suitable for customers who are in a rush and want to have a check on their finances. While there are a lot of security concerns related to the same, they can be tackled by a conscious attitude and a strong mobile password.
Chatbots/Virtual Assistants
Chatbots and Virtual assistants offer suggestions and assistance to the users regarding various activities within the app. They are efficient, available instantly, and make communication with the customer more efficient and to the point. It is also economical for the company’s part as they don’t have to hire external people for customer service. The virtual assistants are going to improve further which will revolutionize the entire mobile banking facilities.
Peer-to-Peer (P2P) Payments
Enables users to transfer money directly to their friends, family, and acquaintances through mobile banking apps. This feature eases the payment option which automatically calculates the individual share of each participant. Splitting bills allows users to divide expenses evenly among multiple participants, making it easier to manage shared expenses for activities like dining out, group trips, or household expenses. Mobile banking applications offer features for splitting the bill.
How Peer-to-Peer Payments Work
Mobile Check Deposits
It enables users to directly deposit checks in the bank by capturing an image of the respective check and uploading it through the mobile banking application. It is a very convenient method as users don’t have to physically travel to a bank to deposit a check.
This eliminates the need to visit a physical bank branch or ATM to deposit checks.
Customizable Alerts
Customizable alerts enable users to set up notifications upon specific occurrences for events such as low balance, pending bill payments, huge transactions, day-to-day spending limit, or any other suspicious activity. Users can customize according to their needs and preferences to stay informed about their finances in real time.
Card Controls
The users can monitor the activities of their debit/credit cards through the mobile banking app. They can change passwords, set up purchase limits, and block or unblock them instantly through their phone. This feature offers freedom and control to the user as they can conveniently perform all these activities in a fraction of the time.
AI-Powered Customer Service
Artificial Intelligence has entered the banking sector as well. AI-enabled chatbots and virtual assistants are present to cater to the queries and doubts of the users and eventually connect to online customer support in cases of serious queries.
Open Banking APIs
Open banking initiatives allow third-party developers to design new products and services which are an amalgamation of tech and finance by accessing bank data using Application Programming Interfaces (API).
Blockchain Technology
Banks are making the best use of Blockchain technology which is allowing a lot of benefits, which include reduced costs and faster problem-solving.
How does a blockchain work - Simply Explained
Digital Identity Verification
Digital identity verification solutions are being implemented to streamline account opening processes and comply with Know Your Customer (KYC) regulations, reducing paperwork and enhancing security.
Instant Payments
Real-time payments using software applications have enabled users to make payments instantly between accounts, even across different banks, enhancing the speed and convenience of transactions.
Robo-Advisors
Robo-advisors are automated investment platforms that use algorithms to provide portfolio management and investment advice tailored to individual preferences and risk profiles, making investing more accessible and affordable.
Cybersecurity Enhancements
Banks are making consistent efforts to improve the cybersecurity of their user base. This includes a series of algorithmic checks before making a big investment or installation of multiple security layers throughout the financial process.
Sustainability Initiatives
Many banks have taken a global initiative and are focusing more on sustainable projects. This includes investing in renewable energy products, supporting environment-friendly businesses, and offering green financial products to save the ecosystem.
Voice Banking
Voice Banking enables users to perform their banking activities using voice commands. This is particularly beneficial for the physically challenged and visually impaired as they will not have to be dependent upon anyone else to perform these activities. Through this feature users can check account balances, transfer money, pay bills, and perform other transactions hands-free, using natural language commands.
Loan Applications
Mobile Banking has revolutionized the entire loan application process into a seamless integration that used to be considered a cumbersome process in the earlier days. Through this lenders can apply for the loans directly from the comforts of the home. Similarly, banking officials will get notified about the same and they can perform the basic screening process to confirm whether the user is eligible for the proposed loan
Investment Management
Through this feature, users can track their investment portfolios, stock prices, and financial market insights directly using this application. The users can track their funds, buy or sell shares, perform trends, and stay updated about all the happenings of the financial market using one single app.
What is Investment Management?
Expense Categorization
Expense Categorization features automatically categorize all the spending activities under different domains such as grocery, medicine, education, investments, rent, transportation, entertainment, etc. This helps users to track their monthly budget and design their budget accordingly if they are trying to save.
Travel Notifications
Travel Notifications alert the users if their card is used for malicious purposes in international borders or unfamiliar locations. Users receive real-time notifications about any illegal transaction and give sufficient time to the users to take necessary measures to protect their accounts while traveling.
Digital Identity Verification
Digital identity verification facilitates users to submit their documents online for verification purposes. This is highly efficient as users can directly get their documents verified without physically carrying all these documents. It’s also highly beneficial for the bank as all documents are safely stored and can be accessed as and when required.
Digital Identity Verification with Klippa DocHorizon
Subscription Management
Nowadays most of the streaming platforms such as Netflix, Amazon Prime, and HBO are offering subscriptions using an auto-debit feature where after the billing period is over, it automatically deducts the specific amount to continue enjoying those specific platforms. Hence the users don’t have to track and monitor these payments and can continue enjoying these applications. Streaming platforms partnering with mobile banking have revolutionized entertainment as well. Users can also cancel their subscriptions using the mobile banking apps. This is also applicable to various other subscriptions such as music platforms, photoshop, gaming, e-books, etc.
Subscription Management Demo | Sales Cloud | Salesforce
Financial Goal Tracking
The users can track their financial goals in case they want to save for a vacation, purchase a new car or home, wedding, pay off debt, etc. Users can set specific goals, track progress over time, and receive personalized recommendations and insights to help them stay on track toward achieving their financial objectives.
Financial Goal Setting - How to plan your journey | Ankur Warikoo
Conclusion
Thus we can conclude that mobile banking has revolutionized the entire banking mechanism of the 21st century. From paying electricity bills to sending loan applications, everything can be performed using mobile applications. The rise of modern technological advancements such as artificial intelligence, blockchain technology, robo-advisors, virtual chat-bots, etc. on integration with banking mechanisms has developed a seamless transaction for its users.
Hence the future of mobile banking holds immense promise engineered by emerging trends and inventions. The emergence of mobile banking has also improved the functionality of the banks and their employees as it maintains a strong database of employee records which can be accordingly used to create measures and policies in favor of the customer base. While there are a lot of benefits of the same, digital dependency also leads to cyber theft which is a big concern of today. Hence Banks and customers, both have to stay vigilant and judiciously use these applications. Special measures must be taken to improve the overall security and privacy of the transactions and related activities.
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