With over 57 million mobile banking users in the United States, the mobile banking trend is steadily rising. Today’s technology offers advantages for smartphone users, including real-time access, smart tools, finance management, and much more, leading customers to adopt mobile banking and even choose banks for their mobile banking solutions.
Today’s banking is rapidly moving away from the physical branch and onto smartphones, where customers have 24/7 access to their accounts, easy access to new services and products, and an instant overview of funds, spending, and possible fraud. As customers prioritize these services more and more, so should bank marketers. Here are 3 mobile banking trends to drive new customers, increase customer satisfaction, and decrease churn.
3 Mobile Banking Trends to Leverage:
1. Chatbots and Voice-Assistance
While simple access to online banking gives consumers plenty of benefits, chatbots and voice-assistance take it a step further. This mobile banking trend is one that applies to digital banking as a whole but is especially useful when leveraged as a mobile bank marketing strategy. For example, the Wells Fargo chatbot combines seamlessly with Facebook Messenger.
Customers can simply talk to their bank chatbot through a familiar interface they likely already have on their phone, saving time and the need to go to a dedicated app. The Wells Fargo chatbot can then handle basic requests, pay bills, inform customers of their account status, and even inform customers of where their money was spent without them ever having to leave Messenger.
Capital One’s Eno functions in a similar way, letting customers use conversational questions and commands to access account details, pay bills, and manage transactions. Eno also integrates with voice assistants like Alexa, allowing customers to simply ask Alexa for their bank details, to send payments to pre-approved accounts, and to check balance or where money was spent.
Both of these apps also offer alerts and updates when accounts are used, share transaction notices, offer tips to improve spending habits and help users with basic transactions and savings. This type of conversational assistance is only getting more popular, especially as chatbot technology improves, and pulling inspiration from trends like this will help you to develop new bank marketing ideas. For example, Eno works with conversational chat, recognizing casual conversation, emojis as confirmation, and much more.
Casual chat and voice commands make banking that much more accessible, creating an easy and convenient way for anyone to check their bank information, initiate bill pay, or even handle budgeting without having to take several complicated steps.
2. External APIs
External APIs are an increasingly popular mobile banking trend, which is, in part, driven by the EU’s GDPR regulation. An external API means that other applications can integrate yours, allowing applications ranging from tax and accountancy to other banks to access your app data.
While it is important to keep banking data secure, offering this type of access means that customers can save a great deal of time when importing or exporting transactions, when managing their taxes, or when handling basic bookkeeping. In some cases, allowing external API access also means customers can utilize your digital banking app with voice assistants such as Siri or Google Assistant, making their experience that much simpler.
Here, security is a key factor. Many banks focus on creating highly secure APIs, allowing third-party applications a bare-minimum of access. Others work to approve third-party applications before allowing API access, to ensure continued security. However, as digital banking becomes more and more common, open APIs will as well.
Non-traditional banks like MoneyLion already enable full open API, integrating all customer data into one app. They can then use this data to predict when customers need transactions, to auto-approve micro-loans, to offer payday loans several days in advance, and connect customers more easily, even across different banking applications. While you will spend more on risk management and will have to ensure security protocols are in place to protect customers with open API, most mobile banking users can benefit from them.
3. Big Data and Automation
Mobile banking and bank apps give banks access to more data than ever before. A customer logging in to check their finances, using a digital wallet to pay for goods, or logging in from different locations will share more easily collected data than any number of credit-card users and branch visitors. Apps enable you to track customers based on individual users, track their spending, and make predictions accordingly.
Using automation to benefit from big data is a step that requires investment, but it is one that will improve your customer’s banking experience.
For example, AI can predict when customers need loans or mortgages and pre-approve them, before the customer begins to shop at other banks. Like with MoneyLion, automation can also predict when customers will be paid, if they can pay back microloans, and immediately issue those loans without a formal application process. In smaller and more traditional applications, big data allows you to predict future spending, create recommendations and savings tips for the individual, recommend different products and services, and create user-specific offers. All of this will help you to create a more personalized experience for the customer, tailoring broad services to their specific needs.
There are large opportunities for risk management and fraud prevention because AI can recognize user spending habits. When customers step outside of that, it can easily notify the individual to request verification, right through their phone or digital platform. AI also responds well to creating personalized rewards such as reduced interest rates for long-term customers or for customers who consistently follow money-saving advice, all of which is relatively easy to implement into mobile banking applications.
Mobile banking is likely the future of banking. Today, more people have smartphones than not, and as mobile banking technology becomes easier, more reliable, and more accessible, it will soar in popularity. It’s widely accepted that physical banks are giving way to digital apps and websites, but this shift is driven by increased convenience, improved personalization, and more features. As a bank marketing specialist, implementing those features into your mobile banking strategy will be crucial to driving adoption, consumer satisfaction, and value from your app. From there, you can leverage mobile banking trends to drive new sales and consumers as well as part of marketing to existing consumers, because those features will deliver direct value to customers.