Would you go for a bank that doesn’t have an app? It’s obvious that in the year 2020, it is almost mandatory for banks to have mobile apps for their users. Technology and banking go hand-in-hand in recent times, and the name for this is FinTech.
Why is mobile banking so popular? There are several reasons and all of them are in favor of the customers. The FinTech app development upgrades in 2020 have made the experience almost 100% digital. It’s like the entire bank is on your smartphone.
All the usual banking activities like making payments, transferring funds, contacting customer service, opening an account, etc. can be done over the phone now within minutes. The major reason for using phones for everyday banking activities is the ease of use and security.
Before we take a look at the latest mobile banking trends, here are a few statistics of how the FInTech innovations are doing for the banking industry and its customers.
Statistics on Mobile banking Trends:
Technology has become an integral part of the banking experience to the extent that the Millennial customers are ready to switch banks for digital mobile service. Because of the high competitiveness of the banking industry, almost every major bank has its own app and is introducing new technology into their system.
7 Best Mobile Banking Trends of 2020 (New Data Study)
Banks seek to gain an edge over their competitors in the mobile banking space by creating new and unique tech upgrades. So here are the best banking technology trends of 2020.
1. Voice Payment in Mobile Banking
The future of user comfort is voice-activated services. Alexa, Google Assistant, and Siri are going to be the biggest platform of internet access in the future. Voice-activated commands are making waves with global consumers.
We are in 2020, and about 33% of all browser searches are screenless. Your smartphone, computer, TV, even your smart refrigerator can take voice commands, then why not your bank? So, how does the voice command feature and translate into banking services? The voice command feature gives two main advantages, User Comfort and Security.
Several banks have already begun to introduce voice recognition features in their app as one of the methods for two-way authentication. Several individual banks have already gone one step further by allowing customers to conduct money transfers with a voice command.
2. Big Data is Making Progress
Data is the currency of the decade, and the entity most interested in currencies are banks. Big data is the entire infrastructure on which the future of banking trends and FinTech will be built. The more you know about your clients, the better you can serve them and save them and yourself from frauds.
As banks and financial institutions grow their revenue and expand services, there is always a chance they will run into some sort of security risk or fraud. The fraud problem is severe in these times. By the end of 2020, the expected fraud losses incurred on credit, debit, and prepaid cards are predicted to surpass $12 billion.
Big Data is an important technological advancement in FinTech when it comes to banks safeguarding their resources and protecting their customers’ identity. The use of big data engines helps them to improve their risk assessment process and provide streamlined customer experience while reducing the impact of frauds.
Thanks to big data, these banks can aggregate and study their thousands or even millions of customer data from a variety of sources like other financial statements, mobile banking history, and even social media.
Fraud detection makes one of the top priorities in the mobile banking arena, and Big Data is proving to be the best weapon in the arsenal.
3. ML & Smart Bots
Chatbots are one of the best mobile banking trends of 2020. It’s the perfect way to deliver a personalized user experience. Machine Learning is what powers smart bots to simulate near accurate human interaction. The ML-based chatbots deliver benefits at all levels.
Chatbots can also train the bank’s staff with various tasks like how to work with particular software, follow the security rules, or even Customer Relations Management (CRM).
With the Chatbots feature, the bank consumers get quick and consistent support, 24/7. The level of expertise that Machine Learning provides to the latest Chatbots is out of this world, from solving minor issues and instant response to inquiries, and even advice on personal finances.
Another genius way of using automated Chatbots service is to help banks manage their operations by measuring customer satisfaction. The system provides various tools to their customers to rate their conversation with a Chatbot to see how useful it is and where it can be improved.
From serving tech-savvy users to reducing operational costs and even replacing old school communications channels like phones and emails, there are several reasons to implement a Machine Learning based Chatbot.
It’s the year 2020 and chatbots are fueling 85% of all customer service communications in the banking industry. The present generation of Chatbots is good at answering FAQs, payment requests, and even tracking personal spending. But the beauty of Machine Learning is that it learns from itself and becomes better every day.
4. Cardless ATM Withdrawal
Do you like queuing at an ATM to withdraw money? No one does! To deal with our collective restlessness with ATMs, banks have introduced cardless ATM withdrawals. The appeal with this mobile banking technology trend is its speed, convenience, and security against cloned card fraud.
Money withdrawal without cards is not a new thing, but it has been a feature offered by several banks and financial institutes. But, this banking technology trend is just catching up this year. This Cardless ATM withdrawal feature conveniently makes banking simple and easy.
There are two ways that the cardless ATM cash withdrawal works:
(a) You use a peer-to-peer payment exchange platform like Apple Pay or Google Pay to withdraw money using Near-Field Communication (NFC)
(b) App-generated codes do the exact same thing as the NFC. The QR codes are provided in the banking app.
In both cases, no card is required. Besides user convenience and quickness, the cardless withdrawals can also help reduce cloned cards fraud. So, no need to worry about rigged ATM machines. All your assets are safe with encrypted cardless transactions.
5. Mobile Banking Apps
How can we make a list of the best mobile banking app trends and not add banking apps? There are several categories of banking apps that you can offer as a bank or financial institute. The classic approach is to provide a complete app with all the varying degrees of banking service from checking account details to money transfer and even opening FDs.
Another huge trend in the mobile banking apps vertical is launching spin-off apps. These are basically stand-alone banking apps that are small in size and offer only narrowly focused banking features for customers that only need and use a couple of banking features or want to try out new innovative services.
Paydown apps are the biggest hit in mobile banking trends this year. Some banking apps help people pay their loans by rounding up their every purchase to the nearest dollar and moving the change into paying the loan. We know it’s baby steps, but it makes a big impact in the long run.
6. Blockchain in Banking
Once we consider the specific features of Blockchain, it makes perfect sense that the banking industry will be taking the lead in the adoption of this technology. The banks and financial institutions are created to connect groups of people and boost trade and commerce between them.
Blockchain is the perfect tool to accomplish this task on a global scale while keeping it secure and transparent. By establishing a decentralized channel for payments with Blockchain, banking institutions can use this emerging technology to facilitate faster payments while simultaneously lowering the processing fees for them.
By introducing a new and advanced level of service with higher security and lower processing fee, banks can redefine mobile banking and challenge the new blood of financial institutions for a draw. 9 out of every 10 bank executives are exploring the use of blockchain to enhance the digital security of their bank.
As a decentralized platform, blockchain reduces several risks and enables data transparency and fraud reduction. Blockchain is the ideal candidate among all the other mobile banking trends to enhance the quality of banking operations.
Benefits of Blockchain in Banking:
- Faster Payments
- Efficient Settlement Systems
- Blockchain Accelerates Fundraising Process
- Digital Identity Verification
- Simplify Accounting & Auditing
- Peer-To-Peer (P2P) Transfers
7. Stricter Biometric Authentication
So, we’ve talked about all the amazing banking technology trends, and most of them have to do with mobile banking apps. But what if someone steals your mobile phone and with it, your banking app is already logged in?
The answer to this problem is integrating more sophisticated biometric technology into mobile devices. So, even if someone has your phone, they can’t access your banking app without your fingerprint, face scan, or voice verification.
One of the main challenges today is mobile banking security, and stricter biometric authentication processes, makes it effective. 62% of American banking and financial organizations already use biometrics. Biometric authentication may become a mandatory feature for all mobile banking apps by next year.
SEE ALSO: Starting A FinTech Company
Upgrade Your Bank With These Mobile Banking Trends
These are the top trends in mobile banking that will be all the rage in 2020. If you are looking for the best technological upgrades to intrigue your banking customers, then these seven banking trends need your attention.
But, to build the best digital side for your financial institute, you need to have an excellent web and app development company as your technology partner.