Being an intriguing trend, mobile banking promises to deliver more in the upcoming years, exceeding customer expectations and providing more comprehensive financial services. This is the reason why the world has experienced a massive boom in mobile banking application development. As many companies are looking to partner with fintech institutions to provide their customers with easier and more convenient payment solutions, mobile banking will continue to develop and expand. But to reach the desired outcome, it is vital to track and understand current tendencies on the market and customer demands.
Mobile Banking Trends
There are quite a number of studies referring to mobile banking that help to create a bigger picture of the development process and the road ahead:
- Last year (2019) more than 1.75 billion people conducted various banking operations with the help of their mobile devices.
- According to Statista, the value of different mobile payment transactions will reach $189.98 billion across the USA.
- A number of leading and trusted global banks invested approximately $80 million in their mobile applications and launched 606 of them.
- The main reason why people (45%, according to Statista) choose mobile banking is its speed and convenience.
- While there is a 61% decline in financial service providers’ competition within the last 30 years, the number of deposits in banks has increased by almost 300%.
Besides the above, there is also an increase in the usage of mobile banking software in the markets that are emerging as they are now offered with suitable and relevant solutions.
Mobile Banking Target Audience
Countries like Bangladesh and India have started to invest in the development of mobile banking as a lot of people have gained access to smartphones and banking services. On another hand, African and Asian markets have shown 50% growth in banking apps utilization while according to the McKinsey report, people from the Philippines show interest in mobile banking with over 60% of those who earn $4 day wanting to use mobile money for savings.
The below markets show the greatest potential in the acceptance of mobile banking and are expected to adopt even more services in mobile banking in the nearest future:
- Eastern Europe is one of the most adoptive markets when it comes to mobile banking.
- Latin America’s market has not exploited mobile banking to its fullest but banks have already begun to digitize their services. The number of banking app users is expected to reach 50% of the total population.
- Southeast Asia has gained double the number of mobile banking users in the last 3 years with Singapore, Malaysia, Laos, and the Philippines looking to expand the number of mobile banking services.
Some make an assumption that banking apps are only for tech-savvy millennials. However, more than 45% of people between 50 and 60 years use banking apps on a regular basis. The younger generation, however, still comprises the majority of active users and is known for being overly demanding. More than 60% of young users stated that they will change the mobile banking application if the offered services are inefficient.
User Expectation towards Mobile Banking
Depending on the targeted market, be it an emerging or highly developed one, users have their own expectations towards a mobile banking application. According to the report, below are the most commonly used mobile banking operations:
- More than 95% of users check their account balance and transactions.
- More than 60% transfer money from one account to another.
- 57% of users use online apps to check alerts from the banks.
- Almost 50% of people deposit checks and pay their bills in a mobile app rather than in a bank branch.
However, according to the McKinsey report, people from underbanked countries have their own expectations towards mobile banking. They want to save, borrow, and store money with the help of mobile banking applications but there are still too many issues stopping them from doing so.
People from unbanked countries are stopped by a number of factors like:
- High minimum balance;
- Lack of awareness on the existing services;
- Lack of ATMs around the country;
- A small number of banks located too far away;
- Unresponsive bank personnel.
The above mentioned include the main reasons for emerging neo banks that are now hitting the market. They strategically target underbanked people offering cost-effective solutions like money tracking, checking balances in real-time, and planning the budget. There are no fees for using neo banks or for withdrawing funds, and people don’t need to keep a high minimum balance. In the US there are already more than 25% of those who actively use neo banks with 60% of people believing that they are more convenient and efficient than brick-and-mortar.
While there are places where mobile banking has already consolidated its position, there is still a lot of those that are not yet acquainted with the benefits it has to offer. But one fact remains the same for all: mobile banking has gained potential and keeps changing the financial industry.
In order to get distinctive results when it comes to mobile banking, companies need to gather enough insights into the targeted market, consumers’ demands, and understand what problems the application will help them solve. On another note, unbanked markets require a unique approach and deeper research as their needs and demands drastically differ from the well-developed countries.