Every bank has a dedicated app for its customers. Imagine your bank doesn’t have an application for accessing basic banking facilities, it’s obvious you’ll freak out. No one wants to associate with such a bank. And there comes a requirement of Mobile Banking. It clearly implies the future of mobile banking and online banking is very bright.
The times have changed and it’s almost mandatory for banks to have their unique application. Many banks still make the mistake of not having an application and that results in customer dissatisfaction. Customers may switch banks for this sole reason. Mobile banking applications are developed using FinTech.
What is FinTech?
FinTech is a combination of financial and technology. This technology manages online transactions with utter precision. The best example is of course the buzzing trend: Cryptocurrency.
Initially, FinTech was used for back-end systems of established institutions ex: Trading firms
Want to dive deep into FinTech? Check out our blog with a detailed description of Fintech with all its aspects.
What is the future of banking?
The future of banking involves the use of various different emerging technologies and trends to offer robust features in the palm of the customers.
The best way to understand is the quick adaption to digital trends and offering stand-alone banking applications with unique features. This also allows banks to roll out quick new features for testing and providing them to the customer.
Statistics on Mobile banking Trends:
Latest Mobile Banking Trends
The only way to keep up with the competitors is to constantly upgrade and adapt to new features and technologies. Let’s get to some important mobile banking technologies to look out for in 2022.
1. Cardless ATM withdrawal feature
The apps provide an option for withdrawing cash without an ATM card. This is remarked as cardless ATM withdrawing.
You drop your card at a random place and someone steals it. Even if the individual knows your PIN he/she will have to go through multiple security layers to be close to accessing your ATM card.
The implementation of this feature has provided security against ATM frauds ex: cloned card fraud.
Two ways the Cardless ATM cash withdrawal works:
- Near field communication (NFC) for peer-to-peer payment exchange platform Ex: Google pay for withdrawing money.
- Apps generate instant code for using it with the PIN and some apps use cameras for verification.
There are always security options for unusual activities on the ATM card which you can check on and implement.
2. Voice payment mobile banking
We can see that most of the online searches are screenless. Nowadays smartphones, computers, TV, and even smart refrigerators take voice commands then how can the banks miss out on this opportunity to update?
The increasing demand for voice assistants and voice-based services has given banks a task in hand. Every bank is attempting to include this feature at different levels. Voice-activated commands are breaking into ever-growing corporate i.e. mobile banking and influencing the financial sector completely.
The voice command feature gives two significant benefits
- User comfort
- Security
Banks have started including the voice recognition feature for 2-way authentication. Few banks have even initiated money transfers through voice command.
3. Big Data
Data is the most valuable asset in the 21st century. Big data is such an asset, and when there are assets involved it’s safe to say banks are too.
The foundation to business success going into 2022 and the future will be Big Data. More data on clients means more efficiency in records, this prevents the lethargic process of managing data and prevents fraud on both sides.
Big data is the reason banks can study and analyze the financial statements, mobile banking history, and to some extent social media of their customers.
Customer identity protection is the main priority for banks. Big data engine steps in with the help to improve the risk assessment process and provide a top-quality customer experience.
4. Machine learning and Chatbots
Chatbots have replaced many manual activities such as customer support and troubleshooting. It is a personalized experience provided to the user.
Machine learning basically is the source of power. It’s due to machine learning that chatbots are able to simulate actual human interaction and handle customer queries for the bank.
The main benefit of these chatbots is that bank is able to provide 24×7 support. The algorithms are so strong that they can even train the support staff to follow the security or CRM customer relations manager.
The rating feature provided by chatbots helps the bank to get an approximate idea regarding the experience of a customer with the bank and its facilities. These ratings help the bank to improve its customer experience by changing policies or methods for transactions.
The Chatbots have machine learning algorithms so it is going to train themselves using neural networks based on the interactions and become better every day.
5. Blockchain
Let’s understand why banks have started using the technology for high-level complex transactions.
Blockchain facilitates the procedure of recording transactions and tracking assets in a network of businesses.
It can trace any possible entity of market value and asses it for trading purposes which lead to a reduction of risk and cutting costs for all the parties involved.
Blockchain is the perfect technology for the banking sector for keeping transactions secure and transparent. The processing charges are less without affecting the transaction speed, thanks to blockchain.
Blockchain being a decentralized platform minimizes several risks and allows data transparency and fraud reduction.
Advantages of blockchain
- No modification is allowed in the data sequence
- Fast transactions
- Digital identity verification
- Peer to peer transfer ( P2P)
List of Banks using blockchain technology:
JPMorgan, Citi, Wells Fargo, UsBancorp, PNC, and Signature Bank
List of Indian banks
Indian banks have formed a company to use letters of credit (LCs) through Blockchain technology. The company formed is IBBIC (Indian Banks Blockchain Infrastructure Co Pvt Ltd.
The company has an identical 6.6% stake share amongst the banks involved.
Banks involved are:
Private: RBL Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, South Indian Bank, Federal Bank, and IDFC First Bank
Public: Bank of Baroda, State Bank of India, Canara Bank, and Indian Bank
Foreign bank: Standard chartered
It is safe to acknowledge that blockchain technology stands out as the most influential mobile banking tech for quality enhancement.
6. Biometric authentication
In a worst-case scenario, your device gets lost with the mobile banking application logged in and can be misused by other individuals. It’s not just you, every other person across the planet has this concern in the back of his or her mind. This is where biometric authentication comes to your rescue.
The technology makes sure that nobody can access your phones. Sensitive information related to your banking activities cannot be accessed without your fingerprint, password, voice recognition, or facial recognition.
To address this issue and solidify the safety of the customers, the majority of banks are using biometrics as the primary feature for their applications. Moving forward it may become a mandatory feature for banks to include in their application.
Keep up with The Future of Banking!
The article covers major technologies to look out for in 2022. The scope of these technologies will provide intriguing upgrades to your banking customers.
So what are you waiting for? Kick the competition! Get your customers the taste of the latest technology through your mobile banking application.
Hire our top developers for your mobile banking application.
