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Importance, Functions, Advantages, and Role of Mobile Apps in Banking

Wells Fargo mobile banking app lets users block debit cards from the app itself if it gets compromised

Role of mobile apps in banking

With the evolution of smartphones, mobile apps took over almost every sector of the market. Due to the convenience and freedom of managing finances, users are adapting mobile banking trends rapidly. Tasks such as transferring money to other accounts, bill payments, purchases, and much more are easier and faster now.

According to research shared by Statista for 2018, in the US, 90% of mobile banking app users viewed their account balance through the app. Moreover, 19% of users opened a new account from the mobile app itself.

Moving forward, we will discuss the importance of mobile banking apps from the perspective of users and developers. If you are planning to develop a financial app, you should keep reading further for some useful information.

A few top statistics for the finance mobile app industry

Now, to understand the real impact of mobile banking apps in the real world, let’s dive into quantitative information. You will also get a glimpse into the ideas you can pick to design an effective development strategy.

Role of mobile apps in banking

  1. Think with Google, 67% of users prefer financial apps that keep user details saved to make the process easier for the future;
  2. According to Statista, in 2018, in the US, 90% of users used mobile apps to view account balance;
  3. Minimum usage was done to reorder checkbooks by users from the US. The total percentage was 17% only;
  4. According to another statistics shared by Think with Google, 6 out of 10 users like to use mobile apps for financial activities instead of websites;
  5. In the US, currently, 57 million banking users are existing, as per the Statista survey.

An Insight into what is mobile banking?

Before we proceed further and discuss the features of mobile banking, let’s understand mobile banking in depth. Mobile banking refers to the process of enabling banking and financial services through smartphones. If we go into the history of mobile banking, earlier mobile banking service was dependent upon the SMS service. Later, in 1999, web mobile banking was launched by European banks. 

Features and functions of mobile banking

Best finance apps are used for multiple purposes such as cashless transactions, statement review, address updates, and much more. Such advantages of mobile banking are only possible due to technological developments. Therefore, with time, as smartphone technology and app trends are evolving, new features of mobile banking are coming into existence as well. For now, we are discussing a few already existing features in-depth for your reference.

1. Better security

Compared to ATMs and old-fashioned transactions, mobile apps for banking are much safer. These apps require user authentication for every single transaction. Therefore, the chances of compromised security get reduced. However, as it is an internet-based service, there are a few disadvantages. So, while developing mobile apps for banking, security protocols such as SSL and TLS are important. Banks are also applying fintech blockchain technology for an extra layer of security.

2. InstaAccount services

As the name suggests, InstaAccount feature of mobile apps for banking gives users the ability to open bank accounts instantly. Moreover, users get the freedom of submitting required documents online themselves to complete the verification process.

3. Investments and trading 

Financial mobile applications are not only limited to banking activities. Currently, users can invest their money from these stock trading apps themselves. Moreover, with options such as trading, the share market is accessible for the users through apps as well.

4. Bill payments

Role of mobile apps in banking

Almost all financial mobile applications are taking this function very seriously, as the commercial sector is adapting the culture of cashless payments rapidly. With the help of this feature, users can pay for electricity bills, phone recharges, and other services. Moreover, to make bill payments secured, banks also use high-security protocols while developing mobile apps for finance. With time, these mobile payment apps are expected to grow in numbers.

5. Account statements & history 

One of the major benefits of mobile banking is that you get access to account statements and history on the go. Users get to see details of every single transaction, along with the amount and the time of transactions. 

6. Customer assistance

Banks are using mobile app customer support techniques to make the process easier. By integrating the AI chatbots, banking apps are making the customer service experience convenient for users. AI chatbots provide mobile banking features and benefits such as fast responses, smart query solving, etc. Moreover, mobile apps are providing support in multiple languages to cover a large range of audience.

7. Fast alerts

Banking apps have helped users in getting real-time account-related alerts. In other words, users have the freedom to know about activities such as transactions, account updates, among others instantly.

Benefits and importance of mobile banking

To understand the role of mobile apps in finance requirements better, it is crucial to understand the role these apps are already serving. Moving forward, we are going to have a look at important needs for which users are using mobile banking apps.

1. The growing number of cashless transactions

One of the major achievements mobile banking apps have got is the growing number of cashless transactions. Users are free from the hassle of locating ATMs to withdraw money. With a simple scan, transactions are done. Moreover, finance mobile apps are secured as well, compared to ATM cards. Moreover, with the help of IoT in banking, apps are able to initiate cardless withdrawals as well. Mobile apps for finance are safer against unauthorized transactions as well, as they require user authorization from the app to complete transactions.

2. Convenient banking services

Banking apps have made banking services convenient for users. Now, users do not have to travel or look for the nearest branches to get work done. Apps with the help of the internet, are enough to do that. One of the crucial benefits of mobile banking apps is that it makes the processor faster as well.

3. Control over expenses

With transparent transactions, users are capable of keeping track of their money and managing them easily. With the updated details of credited and debited amounts, users can see where their majority of money is going. Moreover, smart banking apps can also help in observing their spending patterns.

Banks such as Wells Fargo or Bank of America, let you instantly block your debit and credit cards in case you lose them.

4. 24x7 Banking access

With banking apps, banking services are available on the go. No maintenance update or long queue can stop users from getting their instant withdrawals or passbook updates.

As they say, “Time is money!”. With the motto of that, banking apps are serving users to make the banking experience convenient and faster. The best benefit of banking apps was seen during the Covid. Users could have control and access over their money, even during a global pandemic. It helped them in avoiding many unfortunate incidents that could occur because of the lack of finances.

5. Instant money transfer

Money orders are history now. With peer-to-peer mobile payment apps, users can transfer money instantly even to people sitting abroad. Banks such as Wells Fargo allow users to use mobile banking apps for overseas or domestic transfers without any hassle. Moreover, for security, users have to go through the verification process to finish the transaction.

Conclusion

With technologies such as blockchain, banking and financial apps are getting secured with time. Features such as voice banking are making the experience convenient as well. Current banking apps are smart enough to assist users with almost every financial need, such as loans, share market, grocery payments, bill payments, and much more.

If you are planning to build a financial app as well, the competition is high. However, due to the increasing demand for these apps, you can still catch a large number of users by offering a few USPs.

Manish
Written By
Manish

With a mixture of literature, cinema, and photography, Manish is mostly traveling. When he is not, he is probably writing another tech news for you!

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