Mobile Applications

How Mobile Applications Improve Our Modern Banking Experience

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We are witnessing a fintech revolution that is taking over the world of finances as we know it. Mobile banking has evolved so much since 2014 that many users have never stepped into a brick-and-mortar financial institution, despite using their services. Applications such as Google Play allow users to manage their transactions without talking with a bank clerk. With the release of Apple Pay, more and more customers are shifting to mobile transactions. The trend continued with Samsung Pay, which follows the same basic principles. Credit unions and payday lending businesses regularly release their own applications to digitize data and enhance customer experience.

Eliminating long lines. Mobile banking allows you to do everything you usually would in a regular bank visit but on your phone instead. The process includes making transfers between accounts, paying bills online, checking balances, and, more generally speaking, creating an electronic version of your paper checkbook. That is why around 75% of Americans aged between 25 and 50 prefer using mobile lending to talking with a bank clerk.

Saving time. Mobile banking also helps reduce wait times at banks by allowing transactions during non-banking hours. According to research, 72% of Americans felt that they would theoretically save time by doing their routine tasks online, including mobile bill pay services.

Smaller footprint. Mobile payments also help the planet by reducing the amount of paper used in credit cards and other financial transactions. According to McKinnon, "By 2020, about 80% of all global consumer retail transactions will be cashless." McKinnon also mentions that one of the challenges that need to be solved is whether consumers will adopt mobile banking without losing control over their personal information.

Saving money. Maintenance expenses for brick-and-mortar financial institutions are decreasing substantially due to the use of mobile applications. The marginal cost reduction will positively reflect on consumers as banks compete to provide better service.

Cash becomes less convenient once merchants start using card readers that require customers to swipe or insert their cards into machines instead of handing them over for signature slips or notations. Eye scan authentication is already being tested to increase account security levels and facilitate lending. Does that mean the end of human services for borrowers? The answer is no. Operations are faster and can be conducted from a personal computer, tablet, or smartphone. In terms of advice, though, technology cannot replace people, nor is that a goal. Some clients prefer having a more tangible experience. Moreover, financial advice requires creative thinking and empathy, which adds value to the human aspect of the job. Check our newsletter for more info on how technology impacts banking. SBS keeps you safe and informed.