Emerging Tech in Mobile Banking

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Customers’ expectations for mobile apps are changing rapidly across the board. And the banking industry just can’t keep up. The 2 billion people using mobile banking apps by 2020 will expect an immediate and seamless user experience.

It’s these changing expectations that have lead the industry to a tipping point. Newly-formed challenger banks are keen to take on the big players. They’re more flexible and use emerging tech to fill the holes major banking apps have left open. As a financial organisation, you’ll have to introduce game-changing features and emerging tech to your mobile offering. Or you run the risk of being left behind.

Today’s User & Bespoke Mobile Apps

Today’s user wants to be able to complete a task as quickly as possible. Even if this means never actually opening their mobile app. Users are already able to automate so many of their mobile apps’ functions. Soon, they’ll expect to do the same with their banking apps too.

Almost all of the major mobile banking apps now offer the essential features. But the user experience is still slow and unintuitive. Key problems users have with mobile banking apps include slow-to-update totals and lack of support for features like Apple or Android Pay.

Overall, the in-app user experience is critical. But some major mobile banking apps are still closer to re-skinned websites than applications. Bespoke, native apps perform faster, are more secure and can make full use of the devices’ data and functionality. This data gives you a much better understanding of how your customer is engaging with your service. If web apps are a 2D experience, bespoke mobile apps are 3D!

So how can new and emerging tech in mobile apps help banks meet customer expectations?

Today’s Technology

Many banks have used technology to improve their mobile offering and their customer experience. Using tech available today, new challenger bank apps can now compete with large, long-established banks. They attract customers with either a superior service or better deals. Challenger banks move quickly, offer innovative features and have no legacy infrastructure to work around.

Today’s challenger bank apps give your customer more transparency over their spending. Mobile apps can send your customers push notifications the second they spend money. Users’ mobile bank statements now include in- depth details like time, date and vendor in real-time. With the users’ geo- location, challenger bank apps can even show your customers exactly where their payments were made.

By making full use of the hardware in today’s smartphones, you can significantly build on your CX. Many mobile banking apps now use TouchID for logging in and authentication. Using Siri, Barclays customers can even send payments by voice.

These features boost the ease-of-use and convenience for your customers. Using technology available today, you can give your customers a better understanding of their spending. This improves the customer experience and encourages users to make the most out of your mobile app.

Emerging Tech & Future of Mobile Banking

New hardware and emerging tech in our smartphones completely changes how we interact with our mobile apps. Facial recognition technology is more and more common in new smartphones. Apple are so excited about it they want their new iPhone X’s FaceID to replace TouchID as the standard.

Your customers will soon expect to log in to their mobile banking apps and send payments just by glancing at their phone. Integrating the technology today will give you a foot up over your competition. It’ll increase the ease-of- use for your users and makes your customers’ tasks more convenient.

Mobile apps can integrate with location-based emerging tech. This gives your customers a unique experience. Bluetooth beacons will recognise when a customer walks into one of your branches. Your mobile app can then automatically send them a push notification, asking if they would like to request a meeting with someone. Using beacons, you can provide a more personalised and frictionless experience. Beacons can increase customer satisfaction and help boost retention. This unique customer experience is only possible through the convergence of the digital and real world. With mobile at the centre.

Artificial Intelligence (AI) and machine learning is becoming more and more integrated in everything we do. AI will soon be seamlessly integrated with mobile banking. By 2020, your customers will expect 85% of their communication with you to be through chatbots. Using algorithms, chatbots will be able to instantly answer customers’ requests, questions and concerns. AI will be able to track users’ bills, payments and savings automatically.

Emerging tech can give you a better understanding of your customers. The data chatbots collect will help you discover new potential products or services. Overall, this gives you a more personalised dialogue between you and your customers. This increases customer satisfaction while reducing customer service costs by 30%.

The way we interact with our phones and apps across the board is changing. Today’s apps are smart, slick and do stuff without us even having to ask. But mobile banking apps are already lagging behind. If banks don’t innovate with their mobile offering, this gap will only get bigger.

Looking forward, emerging tech will become more and more important to the customer journey. Banks that find innovative ways to use new technology will boost their market share and build a loyal customer base. Take a mobile-first approach to your CX. You’ll position your business as an industry-leader and innovator. Others will be left in the app store.

Sources: Juniper Research, Gartner, Chatbots Magazine