Apart from creating chaos across the globe, the COVID-19 pandemic has brought some sticky memes that inevitably come to mind when speaking about digital transformation. If you happen to scroll down your LinkedIn feed once in a while, you might have spotted this one.
Jokes aside, but in the light of current events, what’s been a fancy tribute to the latest achievements in technology, has become a vital necessity. In other words, it would be difficult to underestimate the impact of the pandemic on the acceleration of digital transformation in many industries worldwide. In this article, we’re going to talk about the role of mobile technologies in the banking sphere.
People are getting more and more tech-savvy: mobile applications have already become a casual part of our lives. Banks are rushing to develop their mobile banking apps, and they have good reasons to do so. According to statistics, mobile banking is gradually becoming an integral factor when choosing a bank.
Besides, as the world is getting increasingly digital, banks are moving online. For instance, the countries in Northern Europe and the Baltic region have seen the biggest decline in the number of physical bank branches per 100.000 adults in recent years. The same picture is valid for the US and Australia but to a lesser degree.
Following the recent trends in providing quality service, modern businesses across the industries adhere to the principles of customer orientation. Banks that hope to benefit from customer acquisition and satisfaction should provide a bouquet of functions, offers, and improvements in their mobile applications - all in the name of comfort and ease of use. It won't be an exaggeration to say that this customer-centric approach has become one of the most powerful engines for creating an inviting portfolio for a bank. Marketing studies show that poor digital services result in bad reviews in greater measure than, say, a small area of a bank branch.
This way, the four cornerstones of a successful mobile banking application are:
- its ease of use
- 24/7 availability
- maximum automation
- a wide selection of offerings.
Besides, mobile banking is crucial for the dynamic scene that includes small businesses and entrepreneurs. Gradually responding to SMEs’ needs, mobile banking serves as the main channel of processing money operations for such businesses. Obviously, mobile banking is far bigger than just sending or receiving money. From term deposits to purchasing insurance plans, the technology offers a wide array of possibilities. Here at Akveo, as mobile banking advocates, we’d like to share seven tips we’ve accumulated while developing such apps.
1. It’s crucial to add the ability to order a certain service through a mobile application or, better yet, the possibility to become a bank customer. On the eve of the second wave of the virus spread, this feature draws a line between making ends meet and gaining new customers.
2. The use of cross-platform technology makes the application development process both cheaper and faster.
3. What about using libraries and other solutions? Ready-made solutions for face recognition, documents, feedback chat, user authorization, and libraries to encrypt the application are great helpers. This approach in development allows you to make innovative products and quickly create new features.
4. Reliable CI/CD process and test automation allow delivering new features in small increments and quickly. As product quality is a critical factor, it is important to introduce reliable and effective automation practices.
5. Conduct independent audits of performance and safety. In the domain of banking, downtime risks are very expensive and reputation losses may be huge. Since personal information is highly sensitive, safety should be a priority number one.
6. It’s advisable to offer clients pre-configured projects for their needs. Customers just love such kinds of products, and it’s a great way to increase customer loyalty to a brand.
7. Offer services of other companies and introduce mutually beneficial offers in addition to your own services (for example, purchase of licenses, insurance, vouchers for shops). This approach allows:
- creating unique offers
- attracting new customers through integrated services
- increasing both turnover and revenue.
To Sum Up
I won’t say that brick and mortar branches have become obsolete all of a sudden. The Federal Reserve's Survey of Consumer Finances claims that “older, wealthier, and self-employed consumers” still prefer local branches. The question lies in more opportunities that the digital presence provides.
Secondly, the pandemic has changed the way people approach services, including banking. For instance, 78% of Americans don’t feel at ease visiting their bank or grocery store. What’s more, 55% of respondents stated they would avoid physical visits while they could. Another 26% will stick purely to mobile banking. I guess it’s a clear indication that digital transformation is here to stay for good.
As most consumers are perfectly fine doing digital, banks should address such consumer demands and adapt to the reality of the digital age. Mobile banking is the perfect way to do so. The biggest concern is cybercrime, though. It’s not uncommon that malware including banking trojans is embedded in apps like games or online dating services. Once a user logs in into his banking app, the virus starts to harvest sensitive information such as logins and passwords. What’s more, the pandemic catalyzed even more criminal activity. According to the most recent research by Positive Technologies, in Q2, 2020, hackers used COVID-19-related baits in 16% of their attacks. These stats prove that banks should resort to stricter SSDL practices at all stages of the mobile banking application development lifecycle. However, that’s the topic for another article.
We hope that you’ll find this advice helpful. Is your organization interested in developing a digital banking application? Regardless of your mobile app specifics, we come up with top-notch development and consulting services including technical and business aspects. Check out our mobile development page and drop us a line.
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Akveo is an experienced team of full-stack software experts passionate about creating reliable software and ready to accept the next tech challenge. Our expertise lets us understand the essence of our clients' business needs to deliver the best solution possible. Plus, the use of our own products in development and design allows us to reduce development time and implement new solutions faster. Check what our customers say and contact us.