The Rise Of Mobile Banking & Trends To Keep An Eye On
Most of us are already using our smartphones to transfer money instead of physically paying cash at every shop. It is obviously more convenient as transactions can take place at the tap of the fingers. You do not need to look for change anymore. Internet banking with easy accessibility to banking services like account opening, checking transaction history. Financial products like credit cards and insurance have taken banking to the next level.
What is Mobile Banking?
Accessing financial services like money transfer, bill payments, recharge on mobile devices through an online banking app or other financial institutions.
What factors caused its popularity?
Mobile banking has witnessed immense popularity in recent years. Some significant factors have contributed to the high growth momentum of digital banking.
- Easy internet accessibility- Internet is now available at all at very affordable rates. It makes the connectivity between banks and customers stronger.
- Smartphones- Today, you can see smartphones in the hands of every individual. It would have been difficult to access the bank services on mobile devices if the screen was small with keywords that were difficult to use. There are cheap internet, upgraded smartphones, and fast data connectivity that have played a vital role. To connect the banks and the people together.
- Pandemic- Everything has shut down all of a sudden due to the pandemic. The banks, ATMs, even grocery stores seemed out of reach. This led people to look for a digital alternative for banking services. Many people had downloaded digital payment apps for the first time during the pandemic phase. Now, it has become the ‘new normal’ for people to use their phones for tasks like recharge, bill payments, applying for loans, etc.
- Demand for rapid service- Millennials don’t have the time and patience to waste half their standing in the long lines of the banks just for tasks like cash deposit, money transfer, and balance inquiry. So, they are the first to adopt the change in the banking system. Many banks are total digital without any physical branch. Surprisingly, they have received very positive responses from people across the globe.
What are the trends to look out for?
Some of the massive trends that need your attention are as follows:
- Cardless ATM- With the QR cord available on smartphones, it will be possible to scan the code close to ATMs to withdraw money. It will make the entire process totally contactless.
- Biometrics- With the use of biometrics, apps can become more secure.
- Voice Command and recognition- People will be able to access the service just by giving voice commands.
- AI and Chatbots- Customer servicing on the online banking apps will improve with the help of machine learning and automated chatbots.
- Fraud Prevention- Extensive data analysis can detect fraudulent activities and freeze them instantly.
Mobile Banking will continue to become popular with advancements in technology and a rise in demand for easy and quick banking.