“Mobile devices, high-speed data communication, and online commerce are creating expectations that convenient, secure, real-time payment and banking capabilities should be available whenever and wherever they are needed”
———Jerome Powell, Chairman of the US Federal Reserve
We are fundamentally moving towards a completely cashless society. Soon, not only wallets, but also debit and credit cards will disappear. This is just one of the banking trends that will change our lives for years to come. Findings by Riksbank (2019) indicate that cash transactions percentage in many countries has already hit record low and Worldpay (2019) projects that by close of 2021, mobile wallets, credit & debit cards will surpass cash at all point of sales.
Digital transformation doesn’t happen overnight. This is a complex and time-consuming process that has a fundamental impact on every aspect of the organization. According to Banking and Capital Market Outlook report (Deloitte, 2019), over one-third of all banking institutions have already invested in technologies such as open APIs, big data engines, or chatbots, to accelerate digital adoption and modernize their offering.
Mobile wallets, on-demand banking apps, and the new trend of digital assistants are at the forefront of the mobile banking wave. And it’s the consumers who often act as the prime movers of innovation. They’re increasingly demanding and want self-service, personalization, and immediate assistance.
To keep up with these evolving customer preferences and stay competitive, banks and financial institutions have no other option but to tap into the latest mobile banking trends. There are innovative differentiating trends to consider in 2022 and beyond.
Trend #5: Voice Payments will be more prominent globally
Voice-activated controls are gaining traction with consumers around the world. Research shows that nearly a third of all browser searches will be screenless, by the end of 2021. Currently, smart refrigerators can receive voice commands to order groceries from stores, pay, and deliver them home.
How is this converted to banking? Consumers are so aware of the security issues that some banks have introduced voice recognition as one of the two-way authentication methods. Another use of voice technology at FinTech is to provide access to private banking via smart devices such as Alexa and Siri. Private banks are even more advanced, allowing customers to send money to trusted recipients, inquire about transactions, and report stolen cards all in their own name.
Trend #6: Customer Service will be boosted by Machine earning & Smart Bots
The ability to offer highly personalized real-time experiences is becoming one of the critical differentiators for financial providers. The pressure to deliver on that consumer expectation is high, as 61% of mobile banking customers say that they would switch banks if their bank offered a poor experience (Business Insider). Despite this claim, a staggering 94% of banks fail to deliver on the personalization promise (The Financial Brand). One of the ways to enhance user experience with banking and keep customers loyal is through the introduction of machine learning and chatbots.
The days of standing in line at a customer service counter to conduct your banking or get advice on making financial decisions are long gone. Today, fintech giants such as JP Morgan Chase, Bank of America, or Wells Fargo implement their smart bot solutions to improve services across various customer touch points.
These smart bots use machine learning, predictive analytics, and cognitive communication to help consumers conduct every piece of financial transactions, from making payments and saving money to paying down debt. It’s anticipated that a smart bot can make much better predictions and decisions than a bank clerk could, so look out for increased, deeper insights into consumer behaviour thanks to smart bots.
Trend #7: Paydown Apps will push up debt payoffs
Everyone knows that it is much easier to pay off a loan all at once than to pay it back. Today’s consumer society overspends, forcing us to buy more than we can. This problem is reflected in the statistics. The next mobile banking trend is giving consumers a quick and easy way to get their finances back on track.
A variety of mobile savings apps and repayment tools are available to help loan holders pay off their debts quickly. The Roundup app automatically converts your purchases to the nearest dollar and deposits the difference into your savings account or pays off your debt. Other debt relief solutions, such as Debt Payoff Assistant and Undebt. It provides users with better debt by providing in-depth expense analysis, tracking debt and interest, and recommending repayment strategies. according to their needs.
Conclusion
The banking industry is known for its resistance to change. Today’s banking systems rely heavily on manual processes and lengthy procedures, and traditional financial institutions are lagging in developing the substantial resources needed to deliver solutions. Digital for consumers. However, innovation is constantly evolving, as the mobile banking trends above show. Technology is evolving at an alarming rate, creating a wave of opportunities for financial institutions aspiring to adapt. To stay successful, modern banks need to balance physical branch offices with mobile banking services.
As consumers spend over 5 hours a day on smartphones, and the number of mobile devices is anticipated to reach 16.8 billion by 2023 (Statista), banks that will be the first to leverage the emerging mobile banking technology trends are bound to gain a competitive edge. SMS banking and a basic mobile banking app are not enough. Consumers seek a comprehensive, positive, end-to-end banking experience that is personalized and effortless. They won’t stay loyal if a bank doesn’t live up to their expectations and will vote with their thumbs tapping on smartphone screens.
References
https://www.brainyquote.com/quotes/jerome_powell_857783?src=t_banking
[Accessed 14th August 2021]
https://www.iflexion.com/blog/mobile-banking-trends [Accessed 14th August 2021]
https://thefinancialbrand.com/120076/most-people-make-deposits-via-mobile-apps-and-thats-not-stopping [Accessed 15th August 2021]
https://thefinancialbrand.com/119723/banking-and-payment-cx-jeopardized-by-surging-digital-fraud/ [Accessed 15th August 2021]
https://www.iflexion.com/services/enterprise-mobile-application-development
[Accessed 15th August 2021]
https://www.iflexion.com/blog/ewallet-apps [Accessed 15th August 2021]
The writer is a Development Communication Specialist, an SDG Mkt Building/SME Researcher and Finance/Investment & Banking Nomad.
He`s Senior Project Manager & Ag. Country Director with PIRON Global Development GmbH, Ghana (www.piron.global). Contact him via ([email protected])
