History vs Present
Dating back to the early days of the stock market, investors would trade stocks with other investors in coffee shops. Many of these low to medium-net worth investors would purchase stocks on margin, which allowed them to borrow money from their shareholders and put down as little as ten percent of the share’s value. These investments were conducted with paper slips and were solely in-person interactions.
Over the last century, new advancements in technology have swept through the banking landscape, leading to the first online banking service created by Stanford Credit Union in 1994 with the development of the Wireless Application Protocol. In 2011, the Royal Bank of Scotland offered the first mobile banking platform to their customers that allowed users to access and manage their accounts straight from their electronic devices.
Fast forward 12 years, a new study suggests that nearly two-thirds of the US population (65.3%) now uses digital banking services, which is a staggering increase in such a short time span. Additionally, a 2020 Insider Intelligence survey of banking executives found that 66% of participants believe new technologies like blockchain, artificial intelligence (AI), and the Internet of Things (IoT) will have the greatest impact on banking by 2025 (1). The convenience of mobile banking and its technology has grown exponentially in recent years, drawing much more customer focus and appreciation. With the ever-changing and evolving landscape of technology within mobile banking, it is critical that banks stay in tune with the technology preferences of both customers and investors and properly manage these expectations. There are three key factors that banks must take into consideration to keep user engagement high, which include: (2)
Easy Navigation
A creative and visually appealing design will lead to an enjoyable interaction for each user within the mobile banking app in question. The personalized options each user can customize for their mobile layout arrangement will present clear and concise information that displays details in an understandable format, leading to increased engagement. The UI will prominently present the most important information, such as balances or transaction summaries, to allow easy accessibility. This streamlined process aims to simplify the banking process and minimize the number of steps needed to access users’ financial information.
Risk
Each mobile banking device presents a critical risk for online security breaches or data theft. The confidential personal and financial information stored on each device can be hacked in the case of network/device vulnerabilities, phishing attacks, hacking attempts, malware and much more. The method in which banks and developers combat these threats is through biometric and secure authorization to reduce the potential for these cyber-attacks.
New Feature Development
While adjusting to user preferences, these banking apps are creating a more user-centric experience, personalizing the banking experience based on user preferences, tailoring specific recommendations based on history and/or prior behavior, and through targeted and relevant notifications that bring the user forward on the platform.
New Innovative Features
The following mobile banking features intricately contribute to the transformative evolution of what we recognize as modern mobile banking today. (3)
Easy Navigation
Risk
New Feature Development
What’s Next?
AI will continue to play a larger role, providing personalized financial insights and creating more seamless customer interactions. Open banking initiatives will gain traction, allowing third-party apps to access financial data securely, leading to much more tailored services. Additionally, integration and advancements in cryptocurrencies and blockchain technology could also provide new ways to manage and invest money. As mobile devices become even more integrated with other lifestyle activities, such as shopping or travel, mobile banking will make transactions smoother and more convenient than ever before.
About Bip.Monticello
Bip.Monticello, a member of the BIP Group, is a management consulting firm supporting the financial services industry through its deep knowledge and expertise in digital transformation, change management, and financial services advisory. In partnership with Bip.xTech, we collaborate with our clients to infuse the spirit of data-driven organizations and build digital solutions, helping them make their operations more efficient and achieve a competitive advantage in the marketspace.