In the present fast-paced digital world, mobile banking app development has become vital for banks wishing to alter the landscape of the financial industry.
The integration of smartphones has increased the demand for convenience, security, and efficient financial services, mobile banking app development offers a huge range of advantages.
These innovative solutions not only cater to the rising needs of modern consumers but also provide a competitive edge in a competitive market.
In this article, we will explore 8 major mobile banking app development advantages that banks should consider as they embark on their journey to revolutionize the financial technology sector.
Empowering FinTech: Advantages of Mobile Application Development for Banking
1. Enhanced Customer Experience
Whenever you think of mobile banking app development, remember that your user experience must be your top priority.
It’s crucial to make a positive relationship with the customers as this is the best way to retain existing customers as well as attract new ones.
You can improve your customer experience in the following ways:
Round-the-clock Availability: With your mobile banking app, your customers can access their accounts 24/7 without any inconvenience.
They’re not limited to just accessing their accounts during working hours.
Instant Fulfillment of Customers’ Needs: People usually appreciate mobile banking is that it gives them all their desired services at their fingertips.
Personalization: As a fintech service provider you must know that personalization is very important to enhance customer experience also to build customer trust. You can collect data on customer behavior and preferences to create a unique user experience.
Control Over Customer Finances: Mobile banking empowers customers to effectively manage their finances by enabling them to monitor account balances, receive account alerts, perform instant money transfers, review deposits, and undertake a variety of other financial tasks.
2. Lowers Bank Expenses
Mobile banking app development can be beneficial for you in lowering your bank expenses and you can increase your overall bank experience in the following ways:
- It can help you go paperless and be more environment friendly
- You can save your money on printing and delivering
- You may not need to hire additional workers
- Transactions are ten times cheaper than ATM transactions
- You can save the operational costs of running bank branches
3. Significant Return On Investment
You will be glad to know that mobile banking app impacts customer engagement and return on investment in different ways.
Several studies claim that you can generate millions of additional revenue by adopting mobile banking app development and can decrease attrition by up to 15%.
Do you want to know how?
As compared to branch-only customers, mobile banking customers hold more products from financial institutions.
Furthermore, the attrition rate or chunk rate of mobile banking users is lower as compared to branch-only customers.
(Churn, or attrition, is the rate at which customers stop purchasing your products or services measured across a specific period).
Also, research from the ABA Banking Journal claims that immediate access to a customer’s financial information can impact additional transactions.
This is the reason that mobile banking app users generate more average revenue than users of non-mobile banking services.
Users of mobile banking services generate 66% higher revenue for banks as compared to branch-only customers.
4. Gathering Customer Analytics
With a mobile banking app, you can collect and analyze actionable metrics. It will make you measure and improve customer experience.
Metrics allow you to understand how customers interact with the app and why.
The metrics can be divided into three major groups consumer satisfaction and user engagement, acquisition, and performance.
Monitor user satisfaction and engagement to focus on the user experience. For instance: active users, retention rate, session intervals, abandonment rate, and churn rate show user engagement.
With acquisition metrics, you can track the number of downloads and where they are coming from. This can help your bank find out which marketing campaigns are successful.
So, measuring performance is extremely important as crashes or slow loading can frustrate the users and affect their experience.
5. Retaining Users with Push and In-App /Notifications
Push and in-app notifications have several benefits for you and your customers as well. It can help to notify users about relevant offers and discounts.
It can also help them inform about increased credit limits or interest rates.
Many banks have already implemented this having a competitive advantage over other banks.
6. Integration of AI
AI has machine learning, machine analytics, natural language processing, algorithms, and much more.
AI can have a significant impact on the mobile banking industry. Chatbots can now take the task of taking customers’ queries on a large scale.
Interestingly, 32% of financial institutions have already implemented AI
7. Improved Security
Know that the primary concern of the customers is their security so as you are dealing with their finances you must keep the data of your customers secure.
However, online and mobile banking have their risks, mobile banking is a more secure option than its counterparts.
This is because of additional security from extra hardware.
To improve the security of your app you can use fingerprints, retina scars, and gesture patterns on top of two-factor authentication and traditional passwords.
Many financial institutions also utilize encryption for privacy and information protection.
8. Time Optimization
Mobile banking can save a lot of time for not only users but for financial institutions too.
Users can quickly complete their transactions without waiting for long hours in queues. Also, you can process the transaction faster leading to a faster turnaround time.
So what are you waiting for? Hire the best banking app development company for hassle-free mobile banking app development.
Why Do Banks Invest in Mobile Banking Apps?
Banks invest in mobile banking apps because they provide a convenient and secure way for customers to access their accounts and perform transactions. Such apps allow customers to check their account balances, pay bills, transfer money, and deposit checks. Moreover, mobile banking apps help banks increase customer engagement and loyalty. It also reduces the costs that are related to physical branches and paper-based transactions. Overall, mobile banking apps are a great way of being competitive in the digital age.
What Makes a Good Mobile Banking App?
A good mobile banking app is characterized by several features such as it should have a user-friendly and intuitive interface that allows users to easily navigate through the app. Security is the key, it should have robust measures like biometric authentication and encryption to protect secure data.
What Programming Language is Used For Banking Apps?
What Database Do Banking Apps Use?
Banking apps typically use relational databases for their data storage needs due to their robustness and ACID compliance, which ensures data integrity and consistency. Common choices include Oracle, Microsoft SQL Server, and PostgreSQL for managing transactional data. NoSQL databases like MongoDB might be used for specific non-relational data requirements, such as customer profiles and analytics. The selection of the database system depends on factors like scalability, security, and the specific use cases of the banking application.
How To Choose a Team For Mobile Banking Application Development?
In addition to reviewing feedback and examining past projects, ensure that the developers possess specific expertise in cybersecurity, dashboard creation, and the design of user-friendly UI kits to guarantee a comprehensive skill set. We at Quanrio specialize in mobile banking app development. Contact us for further details.