Impact of Mobile Banking Application On Banking Sector

Mobile Banking apps are the latest inventions in the banking industry that bring ease of operation to the banking industry. Different private and government banks are introducing mobile banking apps for customers to track their deposit, withdraw history, and bank balance. According to a survey, more than 40% of the world adult population is using mobile apps for banking. The usage of mobile banking apps increases by 14% every year. Due to these statistics related to the use of mobile banking apps, the banking industry is currently evolving on optimizing or creating their mobile apps. It is meant for the ease of account holders to operate the banking services efficiently.

Mobile Banking Apps

 

In this article, you will find detailed information on the efficacy of the use of mobile banking apps.

What are the Features of Mobile Banking Apps?

There is a wide range of features of mobile banking apps that make life easier for consumers. The most important element of the mobile banking app is to create a close and strong relationship between the clients and the banking services. The easier the service is to operate, the better is client satisfaction. Using these apps, you get a window to perform several banking services right at your fingertips. Here are some of the features of mobile banking apps that set an example of convenient banking services:

  • Detailed Transaction Insight- The good quality of the mobile banking app not only shows the count of transactions but also tells you the details about it. It must display information about the receiver of the payment, the date and the time of the transaction, and whether the transaction is successful or not. A better application will also give you the phone number and the address of the payee.
  • Easy-to-use Interface- Mobile banking apps need to have easy to understand UIs for maximum clients and customers to operate it conveniently. The interface should have clear options stated without keeping it hidden behind the menu bars for the students as well as the elderly persons to operate at ease. 
  • Balance Information- With the use of online banking apps, you do not need to rush for ATMs to check your account balance. You are just a tap away to check your account balance with the least effort. All the apps are now putting their efforts to give adequate information about account balance. In some of the mobile apps, you do not even need to log in to the account to check the balance on your account. By keeping a regular track of your account savings, you will avoid spending unwanted money. 
  • Nearby ATM locator- In most of the online banking apps, there is a column that searches the nearby ATMs for you in case you are in need of hard cash. Not only that, but you can also locate the nearest branch of your bank for any of your banking needs. 
  • Better Account Security- Apart from your usual banking passwords and pins, you can also add mobile password locks, including fingerprint sensor lock, pattern lock, or gesture lock, to make the banking application more secure. 

Different Ways to Optimize Online Mobile Banking Apps

The banking industry is implementing various strategies to increase the efficiency of mobile banking applications. Many investors are also investing in banks to help them make their own apps. It will eventually help them implement the latest technologies to develop new apps or improve on the existing ones to make them the best. Here are the excellent and popular ways that are being implemented on mobile banking apps for better optimization.

1) Chatbots 

Mobile Chat Box

 

Most of the banking sector is implementing the use of chatbots to bring in an effective communication channel between the bank and the clients. Chatbots integrated with an online banking app makes it easy for banking institutions to communicate with thousands of customers without much hassle. It is embedded with AI technology to give better financial suggestions to the clients with the prediction analysis technology of chatbots. Moreover, chatbots integrated on to the mobile apps help the customers or clients to offset debts, minimize the expenditure, make payments, and check the account balance at ease. There are different versions of chatbots effectively useful for various banking institutions. Today, most of the banks are planning to implement chatbots in your mobile application to make it even more convenient.

With Chatbots implementation, the customers or clients also get 24/7 customer service at their fingertips. The users who seek fast answers for their problems or queries can seek help from their mobile banking apps, and their queries will be entertained with the help of chatbots in the banking apps. Not only the clients or customers, but the respective bank employees can also take advantage of the chatbot integration with mobile banking apps. It can help the bank employees by giving them technical consultancy or IT support with the use of AI chatbots. Having personal banking services throughout the day without time boundaries marks a positive impression for the mobile banking services.

2) Banking-as-a-Service

The BaaS technology implementation on the mobile banking apps extends the banking services for the clients beyond the working hours. It means that the customers and clients can use the banking services even after the working hours of the bank without any link failure or barriers. Most of the banking institutions are now implementing the latest technologies to optimize banking operations. With BaaS technology implemented on the mobile banking system, banking institutions can make way for more excellent services to give out their products. The artificial programming interface of the mobile banking apps along with BaaS technology makes it possible for the clients to make use of convenient banking operations. With BaaS technology, new features can also be added to the existing online mobile banking apps.

3) Open banking API- Economy

Most of the clients and customers are now looking for technological convenience to use banking services. Therefore, they expect their banks to give them control of their banking benefits over an online banking application. The era of simple mobile banking apps has passed, and they are now expecting better service requests and other features for ease of using banking operations. APIs or Accelerated Programming Interfaces can make this possible. Therefore APIs are currently being implemented in mobile banking apps to make the interface more efficient and secure for reliable use. With APIs, the data sharing between the systems is faster and more secure. Not only that, but you can improve customer engagement with mobile banking applications, which will help the new and existing customers to use the financial services of the respective banking institutions.

For all the bank development companies, it is now easy for them to create new features using API technology. All these new features collectively help in providing better value-added benefits and also offers flexibility to the clients and customers to increase their transaction count on mobile apps. Therefore most of the banking institutions are using API to provide digital payment mode using their mobile banking apps or third-party applications.

4) Blockchain 

blockchain technology for banking service

 

All the barriers that come up with the use of mobile banking apps while executing the services can be rectified by using blockchain technology. The Use of blockchain encourages banking institutions to implement cashless transaction features on their banking applications. Using this feature, there is less chance of any fraudulent activity using your mobile banking app. The use of blockchain makes the service more secure and reliable for cashless transactions and money transfers. It is one of the most efficient ways for embedding the mobile payment feature on to the online banking services.

The use of blockchain also improves various other activities on online banking applications such as third party payment, transferring funds, balance inquiry, and others. Blockchain is, therefore, widely accepted as an essential technology for efficient use of mobile banking services by the customers or clients.

Conclusion 

Now, you have detailed information on the efficacy of the use of mobile banking apps. The banking institutions of today are currently using several ideologies and methodologies to improve the current features of their existing mobile applications to deliver better financial services. Some of the banks are also in partnership with third-party apps for banking services such as receiving or transferring credit, bill payments, insurance premium payments, and a lot more. So, if you are still unaware of the benefits of using mobile banking apps, then contact your bank for the link of the bank mobile application and start using the online services to eradicate the need to go to the bank for every small inquiry.  

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