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7 Interesting Motives Justifying the Importance of Fintech Apps
- Emorphis Technologies
- Apr 3, 2020
- 7 min read
Today’s world is technology-driven which has changed the way of conducting business and the banking sector is no such exception. With the arrival of smartphones, the world has seen rapid changes as consumers can get access to anything by just a single touch of their fingertips.
Over the last few years, Fintech app development have become an essential service provider in the banking sectors. They are in continuous evolving mode and have compelled the banking institutions to change their functioning from desktop to smartphone’s screens. Just open the banking app, and all the banking services will be present at your disposal!
According to a survey by Statista, smartphone users are surging significantly and are projected to exceed beyond 3 billion by 2020. What’s more, the high availability of smartphones among people has led them to increase using of banking apps which is evident from the fact that the number of mobile banking users in the US at present stand at 57 million.
So, the given fact points towards the acceptance of the norm that smartphones have become an integral part of the life of the people and the time have arrived for banks and other FinTech institutions to invest heavily in improving and incorporating new services in their official banking apps.
Before going into further discussions, one question is needed to be answered- “What drives the need for mobile banking?” To answer it, it is first needed to understand the mindset of people and why they are shifting towards mobile banking. To explain it, go through following stats:
From the given figure, one thing can be illustrated that opting for mobile banking has enhanced financial awareness among the individual (62%). The situation is such that every banking institution is competing in this fierce market with the sole aim to attract customers to their fold. To make it happen, they are enhancing their mobile banking app with new features with each passage of time.
Now coming back to the question, the banking sector has become more dependent on Fintech apps as they offer some distinct advantages which will boost their reputations among the tech-savvy people.
Let’s look at some interesting facts on why investing in Fintech application development will be fruitful for financial enterprises.
Why Mobile Apps are Essential for Banks?
In this ever-expanding world, the banking sector has to be future-ready and migrating to mobile apps is the answer to the creation of a perfect channel to sell their products and services most appropriately.
Here there is a demonstration of some of the benefits which will make banking institutions make mobile apps an integral part of their business.
I. A Great Saving Option to Lower Bank’s Expenditures
The business world is going digitally and so the banking sector. To remain successful, a bank must incorporate new and advanced technologies to encash its benefits which is possible through mobile banking apps. Do you know why?
It is because opting for a mobile transaction will enhance the overall efficiency of a banking institutions. Moreover, it will help them to save money on printing and delivery by going paperless. It will also eliminate the need to hire extra workers to operate banking services which thus saves a large number of operational costs.
Similarly, mobile transactions are ten times cheaper than ATM transactions which are beneficial not only for the customers but also for the bank as they are offering services to the customers at a lower cost.
Besides, it helps the banks to lower the operational costs of running bank branches and convince them to make all their financial services available online and interact with their customers via digital platform with great ease. A wonderful saving option for FinTech institutes!
II. Be Visible to Customers All the Time
A recent survey has found that an average person spends about 2 hours a day on their smartphone. Although only a few applications make the bulk of the total usage, still one needs to unlock, scan and scroll their device for the apps which are important to them. For an individual, getting access to financial information about their bank account is needed all the time which they cannot ignore.
On the other hand, it creates an opportunity for the banking institutes to provide them a platform where they could get all the necessary information about bank services and the mobile app is an ideal stage to showcase their services with high visibility.
As there is a scientific fact: “Our brain records every text and image subconsciously as we go through.” And having your banking app in the way of scrolling will not only present all the financial services in-front of the customers, but it will also provide them an opportunity to display new services that might help customers to manage their bank account well. Besides, adding promotional offers will help your customers to remain engaged with you via an app.
III. Satisfy Customers’ Expectations through Better Customer Service
For any business, customer service plays a vital role in enhancing high growth and good revenue. Gone are the days when resolving customer issues was in the sole hand of a salesman. In the present time, mobile apps have been the game-changer in providing innovative customer service at the next level. Wondering why?
Then think about 24/7 availability of mobile apps which is not the case of bank branches or ATM where operations are limited to specific working hours. With the provision of round-the-clock services, it is easy for the customers to access their accounts as per their requirements.
Another reason banks should develop mobile app is that it brings all the banking services within the periphery of the customers which makes them satisfied and make them remain loyal to that banking institution forever. What’s more a bank wants?
IV. With Mobile Apps, Customers are Assured with Better Security
A mobile app is completely secure to operate as compared to their online counterpart because they come with several security layers and firewalls which are capable in defending user’s password and PIN to make the procedure of accessing their account relatively safe.
To enhance security further, banks utilize security solutions such as biometric data and gesture patterns (like fingerprint and retina scan) in addition to two-factor authentication and traditional passwords to protect financial information and privacy of the customers well.
Furthermore, the proliferation of platforms makes the mobile app less vulnerable to malware attacks. What’s more, even if the smartphone of the customer is lost, there is no dent in the privacy of banking data. Thus, a good way to ensure the safety of the customers’ data by banks made possible through the mobile app.
V. Personalization is the Need of Hour Possible through Mobile Apps
In contrast to the website, the mobile app offers greater personalization which is a crucial part to build trust among the customers. Many banking institutions are reinventing themselves to intertwine financial experiences into the day-to-day life of users. But why banks must take this feature in a serious manner?
It is because it will help the bank management to collect relevant data about the behaviour and preferences of the customers which will help them to create some unique banking services to enrich their experience and leave a better note in their mind.
Have you ever wondered why personalization is important for banks? It is because a bank can achieve tremendous revenue growth by personalizing its customer interactions and can enable a deeper and beneficial financial relationship with its customers and to make it happen; mobile apps have arrived as a trend-setter to boost their growth tremendously.
VI. Push Notification is Future Mode of Communication of Banks with Customers
Push notifications are alerts that pop up on mobile devices and with time, they have become quite ubiquitous. Is leveraging push notifications by banks is essential for effective communication with the customers? Do they always provide a perfect solution to solve the communication issue between customers?
To solve these questions, one thing should be noted that they are the main tool to enhance customer expectation when mobile banking come to the fore. They offer multiple benefits by making customers aware of numerous discounts and offers which comes with a particular account privilege. Furthermore, they help in letting them know about their increase interest rate and credit limits so that they can take immediate action to curb it.
So, push notifications are like a kind of self-service which allow customers to have access to all the necessary information about their bank account just at their fingertip. And it is possible by allowing banks to develop user-friendly mobile apps and stay connected with their customers forever.
VII. Cultivating Customer Loyalty through Mobile Apps
To persuade customers in remaining loyal to their services, FinTech organizations must offer some form of reward system to their potential customers which is made possible via mobile apps. A recent survey has revealed that banking customers with high usage of smartphones (or other mobile devices) are 40% less likely to switch to other banks.
This data signifies the importance of mobile banking option which act as a vital component in shaping a customer’s decision to stay intact with a single bank or switch to another. Want to turn your satisfied customers into true “raving fans”? It will take your institution lots of patience and efforts to enhance customer loyalty and is possible by turning towards most tech-savvy tools- a mobile banking app.
Thinking about customers, loyalty among them will be skyrocketed which is possible through various ways. First is keeping up an ongoing conversation with customers which implies that besides providing financial information, these apps have taken it to next level by establishing a constructive dialogue by sending alerts and notifications and offering online customer support.
Secondly, the app assists customers by monitoring their financial goals and accomplish them successfully. It will help them to become niche service providers and get a competitive edge against their competitors. Likewise, it also facilitates the customers to sign-up with new products right from their smartphone to find an effective solution to their financial and product recommendations.
Closing Note
In the world of FinTech app development, a win-win situation is created for both financial institutions and customers with significant advancement in banking via apps. Not only complex financial procedures are simplified, but there is also further enhancement of customers’ response and hence their engagement all thanks to the mobile apps.
Henceforth, mobile apps hold the key to running successful banking services in the future. Noteworthy, your business is future-ready to cater to the needs of techie customers in the best possible way. Thus, the inclusion of mobile apps will be a great boon for the FinTech sector for years to come.
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