The banking sector has experienced a drastic shift due to the evolution of mobile technology. A survey by Statista represented there is a drastic increase in the number of smartphone users; a number of users are expected to reach around 3 billion by 2020. Even numerous people all over the world are using a banking app to accomplish various transaction processes. Therefore investing in developing banking apps can prove to be beneficial for any of the businesses.
According to a report, the app industry poses the capacity to grow by $100 billion by 2020. It has made it essential for business owners to embrace technology so they can engage their ideal customers and get solid insight into the market. Users want to leverage technology; hence business owners can use the technology to offer excellent service to customers.
Mobile apps have undoubtedly become a necessity for businesses, be it an established or unestablished business. As a business owner, you can not afford to ignore the benefits of mobile apps. Users use different types of apps, like a video streaming app, food ordering & delivery, grocery ordering, and many more.
Building Banking App: Explore What Benefits Can Be Gained from It
The banking app is very beneficial for customers who don’t have time to go to the bank again and again. They can just perform any of a number of transactions easily through the advance application. The mobile app provides numerous benefits to the customers; they get easy to access rights, convenience, and much more when any of the apps developed for a specific purpose.
A banking app is a free tool that provides more convenience to the users to make the transaction from anywhere and anytime. Besides this, investing in a banking app can offer various advantages to banking institutes from which some of them are listed below; explore it to know what are the benefits of developing a banking app.
Return on Investment (ROI)
According to a study, mobile banking greatly impacts customer engagement; it offers great returns on investment in several ways. Mobile banking adoption rates can be increased to a great extent; the average institution can help to generate millions in additional revenue and decrease attrition by up to 15% or more.
Customers can Complete Transactions
Research shows that if customers have immediate access to financial information, then it influences them to make additional transactions. It is the main reason why users who are making use of mobile banking services can generate average revenue than nonmobile banking service users. Banks can successfully generate more than 66% of revenue from customers who make use of mobile banking for various purposes.
24×7 Availability
Any of the users who are suing the banking apps can easily perform all their banking transactions from anywhere and anywhere. Compared to that, when it comes to traditional banks, they have to depend on it’s time and place for making any of the transactions.
Variety of Operation
The banking app allows users to perform various operations and transactions. They can perform various tasks like mobile check balance, their deposit amount, track loan, and much more through the app. Apart from that, if they want to make an online transaction, then they can also do the same through the app.
Increase Security
Most of the banks value their reputation; hence they ensure that their IT infrastructure is safe and secure for the use of the users. They take the support of the MongoDB development company to secure the data of the customers. They will also make sure that the information which has been shared is in encrypted form or not.
Security is one of the critical concepts for mobile banking users. Mobile and online banking have their own risk, but adding hardware security can help you to make online and mobile banking much more secure for customers than its counterpart. Banks can use security solutions like gesture patterns, biometric data such as fingerprint, retina scan, and much more as two-step authentication.
Almost all banking sectors these days are making use of encrypted data to simply protect the financial information and data from all breaches. Taking security measures into consideration ensures hassle-free mobile banking. Due to the proliferation of the platform, malware is less likely to affect the system. Even if any of the mobile banking users lose their data, their information is safe and secure from all threats.
Gathering Customer Analytics
Advanced mobility solutions have made it easier for businesses to analyze and collect actionable metrics. It allows the banking sector to measure and enhance their service resulting in amazing customer experience. Efficiently collected metrics can help businesses to understand their users; it can help them to know why their users interact with the app and why they prefer online banking over the traditional one. The collected metrics can efficiently divide into 3 major groups:
1. Consumer satisfaction & user engagement,
2. Acquisition,
3. Performance.
By collecting users’ information and monitoring their engagement and satisfaction level can prove to be beneficial for banks. It helps them to focus on the user experience. For instance, banks can collect numerous information about the session intervals, active users, abandonment rate, retention rate, churn rate, and much more, which simply indicates user engagement.
Acquisition metrics help banks to track the number of downloads and also help them to know where the traffic is actually coming from. It can help banks to identify where their marketing campaigns have success and where they need to put more effort. Undoubtedly measuring performance is very important as slow loading and crashes can have a great impact on users’ experience. At the same time, performance metrics can help you identify why mobile banking apps might have high abandonment and churn rates.
Decrease Customer Service Cost
According to McKinsey’s research, mobile banking reduces around 60-70% of the cost of customer services. According to a Deloitte study, the cost of mobile transactions is 50 times lesser than branch transactions, while ten times lesser than the ATM transactions. Hence it can simply result in a reduction in operating costs and also increase inefficiency.
Lowers a Bank’s Expenses
An advanced mobility solution enhances the overall bank’s efficiency. It helps the bank by:
Helping banks perform all take paperless enduring to support environmentally friendly ways;
Saving money on delivery and printing;
Eliminating the need to hire workers;
Offering cheaper transactions;
Saves on operational costs of running bank branches.
User Retention
In-app support and push notifications enable banks to inform their customers about increased credit limits. They can get all the relevant offers and much more, which few tabs on their smartphones. Banks that offer such advantages can leverage the benefits of competitive edges. They can also focus on targeted notifications helping them enrich customer experience as well as a result of improved client retention. This can also help you to improve your mobile ratings to a great extent.
Productivity and Efficiency
Artificial intelligence, otherwise, machine intelligence can help perform all the actions efficiently that also without human intervention. Some of the famous examples of AI include chatbots, algorithms, natural language processing (NLP), and machine analytics helping banks automate most of their work, ensuring error-free operations.
With the help of AI-powered tools and applications, it becomes relatively more straightforward for you to send personalized notifications to customers based on their location, purchase history, and preference. Moreover, chatbots can help in sending customized offers and recommendations, allowing them to save on costs. Modern technology helps perform all the tasks systematically without the involvement of colossal staff for the same, which will definitely result in boosting your employee’s efficiency and productivity to a great extent.
Summing It Up
There is no doubt that the banking firms are adopting digital change; they are adopting the latest technology to provide advanced experience to the customers all the time. Developing an advanced banking app, the banking industry can leverage various benefits like enhanced customer experience, increasing efficiency, better operations, reducing bureaucracy, promoting banking services, and much more.
