In the past few years, digital and mobile banking has revolutionized the way consumers deal with their savings and bank accounts. Aware of the current revolution, more and more banks are leaving behind the old, traditional banking systems in favor of more interconnected financial solutions for their clients.
However, the fintech industry has been evolving at a breakneck pace, leaving most banks struggling to keep up. An enormous number of innovative solutions and technologies have made their way through the fintech industry and have been proven to be highly preferred by consumers than the traditional, sometimes outdated, banking system.
This is especially true when we take into consideration the increasing number of users – 22 million last year – who manage their current account on their phone. This number is predicted to grow to 35 million people by 2023; at that point, customers will typically visit a bank’s branch not more than twice a year.
Real-Time International Payments Directly to Users’ Phone Numbers
Last year, we saw increased adoption of mobile banking and payments. The next frontier in 2019 will be the availability of apps that allow card-to-card money transfers. These apps are set to reduce payment complexity once and for all by enabling near real-time transfers.
This innovative payment method differs from existing instant money transfer apps for two main reasons. Firstly, users don’t need to top up their bank account or to create a payment account and can receive money instantly, directly to their phone number.
Secondly, this means that no extra fees are charged whenever a user sends or receives money. The benefits of its adoption are limitless, and this payment method is definitely set to revolutionize real-time international payment and to eliminate the complexity of money transfer apps we’ve been used to so far.
AI for Customer Service
From video games to Google apps, there has been enormous development in the use of AI for voice commands. This happens to be particularly helpful when applied to banking as the use of artificial digital assistants such as bots and voice assistants is set to eliminate the lack of customers support, typical of the traditional banking systems.
Voice assistants are also being developed to handle banking functions, as the technology allows customers to converse about many different bank services.
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Chatbots, too, allow customers to ask questions in real time conveniently and to receive accurate answers.
With the rise of digital banking have come increased threats posed by cyber attacks, and security is a top priority for a sector like the financial one.
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That’s why in mobile banking, biometric technology has been adopted mostly to prevent fraud, but also to allow customers for a faster authentication which poses an end to the obsolete passwords method.
Biometrics-based authentication uses a smartphone camera to scan the iris and the phone’s inbuilt fingerprint scanners for authentication.
Mobile Banking for Small Businesses
Small businesses will need to keep up with users’ ability and demand to quickly pay with mobile, even in-store. Mobile banking can turn out not only to be cherished by users who expect to pay with their smartphone in physical shops but also to be a cost-effective way for small businesses to manage their daily transactions and to monitor their budget more intelligently.
Marketing Insights and Data
The vast amount of data available lets forward-thinking banks and financial institutions use data-driven metrics to respond to customers’ needs in new ways. It is now possible to leverage customer data and make predictions that will allow banks to present these customers with personalized offers and recommendations.
This year’s datas and next year’s predictions show that there are plenty of reasons why businesses can’t ignore mobile banking. The switch to mobile banking is already happening, and the sector is only expected to grow in 2019, when it will transform the way people manage their money, once and for all.
Zhana Dar is the Founder and CEO of Fin.do, a mobile app for the instant card to card money transfers.