With mobile banking app development, banks are redefining convenience, security, and the way we handle money. The financial world isn’t just evolving; it’s going fully digital.
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 because 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 and 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- Lowering 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 a 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 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 development, 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.
Measuring performance is equally important, as crashes or slow loading times can frustrate users and impact their trust in banking app development services.
5- Retaining Users with Push and In-App /Notifications
The benefits of mobile banking 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 inform them 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, with its machine learning, analytics, natural language processing, and advanced algorithms, is revolutionizing mobile banking app development.
Its impact on the mobile banking industry is undeniable. Chatbots powered by AI can now handle customer queries at scale, improving efficiency and response times.
Interestingly, 32% of financial institutions have already implemented AI, showcasing its growing role in banking app development services.
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, but mobile banking apps are a more secure option than their counterpart. 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, making mobile banking app development services essential for secure financial transactions.
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 one of the best Banking App Development Companies for hassle-free mobile banking app development.
FAQs
Q. 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.
Q. What makes a good mobile banking app?
A good mobile banking app is characterized by several features. as it should have a user-friendly and intuitive interface allowing 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.
Q. What programming language is used for banking apps?
Banking apps can be developed using a variety of programming languages, depending on the specific requirements and the technology stack chosen by the bank or development team. Commonly used languages for banking apps include Java, Swift (for iOS), and Kotlin (for Android). Additionally, web-based banking apps may use HTML, CSS, and JavaScript for front-end development, while the backend can be built using languages like Python, Ruby, or Node.js. The choice of language often depends on factors such as platform compatibility, security, and the development team’s expertise.
Q. 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.
Q. 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.
