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Top 7 Trends in Mobile Banking right now

> Blog > Top 7 Trends in Mobile Banking right now

Nowadays, mobile technologies have enabled convenient interactions and has become the dominant way that businesses engage with customers. In the BFSI domain, mobile banking usage around the world has continue to rise. A recent statista report states that over 23 million families in US will be using mobile banking by 2020 and over 2 billion people around the world, will be using it by the end of 2019.

Here are top 7 trends in mobile banking right now:

  1. Personalized management AI assistants: A recent Juniper research revealed that banks will save $7.3billion by 2023 using smartbots. Implementing AI assistants particularly on mobile banking platforms would result in significant cost savings. Also, several banking softwares now offer more personalized services like providing estimated monthly budget from previous expenses, providing smart advice on spending and other features that can provide value and increase your customer base. For instance, Erica virtual assistant has been helping Bank of America to acquire and retain customers on online and the mobile banking platforms.
  2. Voice enabled BankingVarious financial intuitions have integrated their mobile and online application with AI voice recognition and control assistants like Amazon Alexa and Apple Siri to provide customer support functions excluding fund transfer and bill payment features, like Westpac voice banking. Recently, Garanti Bank launched its Mobile Interactive Assistant interface – iGaranti that uses similar technologies like Siri and Alexa. Additionally, the MIA assistant software allows voice enabled fund transfer and bill payment as well as voice navigation features. In the near future, voice enabled mobile banking will become mainstream.
  3. Cardless ATMs: Financial institutions in the US have been deploying cardless ATMs that allow customers to complete transactions using their mobile banking apps via near-field communication between the phone and the ATMs. For instance, consumers use the banking software on their smart phones to find nearby ATMs, set the amount needed and see the associated fees, at the ATM, they quickly snap or tap, often by scanning a QR code, authenticate using optional biometrics on the device, and take the dispensed cash on the move. Bank of AmericaChase and Wells Fargo have implemented this feature and other financial institutions are planning to implement similar functionalities soon.
  4. Open Mobile Banking: Customers of nine big banks in the UK, can now access all their accounts from other banks, on one mobile banking platform, following the EU Payment services Directive (PSD2) enforced by the Competition and Markets Authority (CMA). Barclays bank, recently completed the implementation of open APIs on its core mobile banking. Several banks have fully met the requirements while others missed the deadline, like Bank of Ireland, Danske Bank, HSBC, Lloyds Banking Group and Santander. They have been working round the clock to meet the regulation requirements.. 
  5. Biometric Mobile Banking Authentication: Biometric options are currently being used for onboard new customers and for implementing mobile banking authentication security. Being able to initiate transactions on the move makes banking applications susceptible to cyber-attacks. Biometric authentication has been found to be secure and very convenient on smart phones. Banks like NatWest bank, Citi groupSohar and more have integrated the authentication system in their banking platforms and are reaping its benefits.
  6. Wearable enabled Banking: FIs like WestPac, Nordea Bank  Belgian Bank KBC, and others, have implemented wearable payments  as part of their mobile banking offerings and customers using wearable enabled payment devices in some part of the world are becoming significant; in USA – 47 percent, in UK – 45 percent, and 40 percent in Australia. A recent financial brand report stated that wearable payment transaction volume will reach $450billion by 2020. However, security remains a major concern and several banks are using tokenization security. Others have built-in “enable and disable” payment functionalities on their wearable mobile app.
  7. Mobile Banking integration with Social MediaSocial transnational banking is trending as more banks are integrating banking offerings with their social media platforms. Standard Chartered now enable customers in Botswana, Zambia and Zimbabwe to perform  social transnational banking such as money transfer to friends, view account balances and bills payments via  social media platforms. Other banks like ICIC, Garanti bank’s iGaranti, and Caixa bank, are allowing their customers to perform financial and non-financial transactions using twitter, facebook and other social media platforms with secure two factor authentication systems ( Like JETHRO’s JPrivacy).

In conclusion, the trends discussed in this issue are not in any other of priority and will continue to evolve. Ensuring your mobile banking platform has functionalities that delivers qualitative and responsive services as well as personalized management features are important considerations for earning customers loyalty. Banks without these propositions will be at a competitive disadvantage and JETHRO is here to assist.