The banking industry is becoming more technology savvy with the progressive increase of smartphone users. More and more people are using banking apps these days. The reasons are quite obvious. Banking apps provide consumers with the convenience of using banking facilities without actually visiting banks. They ensure secure ease of access. Here are some advantages offered by the Banking Apps to the banking industry:
Reduced Expenses
Mobile transactions through Banking Apps increase overall efficiency by saving on operational costs. They help banks go paperless and save huge cost on printing and delivery. Mobile transactions are cheaper than ATM transactions and eliminate the need of hiring additional workers.
Increased Return on Investment (ROI)
Mobile banking through Banking Apps can significantly influence ROI through improved customer engagement. Statistics reveal a steady increase in the adoption of mobile banking over the past few years. It has been observed that mobile banking customers show better engagement to the financial institutions in comparison to branch-only customers. Mobile banking customers hold more products and use more banking services. Furthermore, mobile banking customers stay connected for longer with the financial institutions, thereby decreasing the attrition rate by almost 15% over the past years.
Another research suggests that instant access to financial information through Banking Apps can influence additional transactions. For this reason, mobile banking services generate better average revenue in comparison to non-mobile banking services.
Improved Customer Experience
Mobile banking solutions have significantly contributed to ensuring a positive customer experience which is paramount for successful banking services. Mobile banking apps ensure 24/7 availability. Hence, customers are not limited by fixed working hours or particular branch locations. Mobile banking apps provide round-the-clock services, thereby allowing the customers to access their accounts any time and from anywhere.
Mobile banking puts all banking services at the fingertips of their customers. An instant gratification makes customers more loyal to their banks. Furthermore, banking apps provide a personalized customer experience further increasing their credibility. Customers usually have complete control over their finances through banking apps. They can instantly transfer funds, check their deposits, monitor their balances, and get notifications.
Improved Security
Banking apps are further secured by additional hardware security making them highly reliable. Mobile banking apps use an added layer of security like biometric data and gesture patterns along with traditional two-factor authentication through passwords. Furthermore, financial institutions employ encryption to provide complete privacy of financial information, thereby ensuring worry-free mobile banking.
Use of Artificial Intelligence
Many mobile banking apps use Artificial Intelligence or AI to automate responses to generic customer queries. This further ensures speed, efficiency, and security. AI can be used to improve customer services through personalized notifications. Financial institutions can notify their customers about new services and send personalized offers according to their location, preferences, and buying history. AI services can help in detecting patterns or fraudulent behavior in real time. AI-powered mobile transactions ensure security at multiple layers.