The last few years have been disruptive for the banking industry as it has witnessed the mobility revolution. Mobile banking has become an imperative for the banks because innovation has emerged as the one and only way to elevate the customer experiences and establish supremacy in the competitive landscape. Mobile app functionality is undoubtedly enabling more flexibility and proactiveness for banks and enabling them to win over the customers. No doubt, most of the big runners have already invested in mobile app development and more will be following suit in the coming years. Let us try and understand the impact of this innovation on the industry and what can be expected in the future.
Mobile banking and User Adoption
Since the inception of mobile banking, the customers have embraced the concept at a gradual pace. This can be attributed to certain barriers to the user adoption that have been identified over the years.
- Security: Despite the growing interest in mobile banking functionality, security continues to be the greatest concern for app-using customers. A majority of them are wary of the safety of their personal information and financial transactions while banking on their smartphones.
- Lack of tech savviness: Apart from security, lack of tech savviness is another reason that users could be slow to embrace the concept. A large number of users may actually be confused and uneasy with the download and usage of banking apps as these require the users to go through a number of steps while registering and using them.
- Inability to match the mobility potential: Since technology is still evolving, several players are still struggling to actualize their mobility potential. As a result, they may not still be able to deliver customers experiences that are at par or better than the standard banking experiences.
Despite these challenges, mobile banking has grown at a consistent pace and is likely to witness the better performance in the coming years. Banks are going an extra mile to ensure that their mobile app development company has exhaustive security systems in place for the apps. The same goes for the features in apps because the ultimate motive is to render seamless and unmatched experiences that make customers more interested in mobile banking rather than the conventional, in-branch services. Because of these efforts, the growth of mobile banking has seen a more rapid trend in the last few years as consumer expectations have transitioned and their trust in digital experiences has become more defined.
Challenges for the Banking Industry
While the barriers to user adoption are one aspect of the picture, the challenges that mobile banking presents to the industry itself is the other crucial factor to be considered. Even though banks experience acute urgency for innovation, they still face some challenges that act as considerable impediments to the adoption of the mobile strategy:
- Bureaucracy: Established players in any industry, including banking, have bureaucracy woven in their organizational structures, which makes them less flexible towards embracing new technologies.
- Legacy systems: The existence of long-standing legacy systems pose another big challenge to the adoption and implementation of mobile technology as blending them together is probably a lot of work.
- Extended development cycles: Several banks are apprehensive about taking this opportunity because the app development cycles may stretch over indefinite time periods and become expensive too.
- Security perception: Another challenge relates to security perceptions because banks need to build and retain consumer trust all, particularly with new innovations like mobility.
These major challenges have been dissuading the banking players from picking mobility as a part of their arsenal. But this mindset is passe now as mobile app developers are coming up with lean development methodologies and better security features that make the investment worthy enough. Moreover, taking this route no longer remains a choice for them because their competitors are doing so and customers will not take a moment to switch if they find someone who delivers better services.
Getting started with a mobile banking strategy – Now is the time!
If you have not already taken up this strategy, you will probably be seeing a downfall in your customer base. The right time to join the bandwagon is now as every moment of delay will cause you loss of customers. Banks need to align their business goals and processes with the mobility strategy to achieve success and growth in the long run. The best approach would be to invest in customer-focused solutions, the mobile apps that have all the features to address the key pain points and fulfill the expectations of the users. This is perhaps the only way that you can retain your existing customers as well as acquire new ones. For instance, you can use user data and advanced analytics to deliver personalized user experiences.
Besides being customer-focused, agility is another magic word for banks looking to take the mobility route soon. Specifically speaking, there is a need to hire app developers who follow an agile work methodology to deliver high-tech apps within the shortest time spans. Agile, iterative processes will enable the banks to get their apps to go to the market fast and improve offerings to the customers as well. Another factor that can make a difference is related to user accessibility, irrespective of the device and platform they use. This is the reason that they should opt for iOS and Android app development to reach the maximum number of customers.
Mobility is gradually becoming a necessary innovation for the banking industry, irrespective of the fact that it presents numerous challenges for them. The best way to approach this challenge is finding the right application development partner that understands your challenges and is capable of addressing them with the right solution. Mobibiz is a company that has experience of creating full-featured mobile apps for a diverse clientage. Connect with us and share your requirements to get a mobile banking app that matches your needs.