Fintech Futures: How Apps Are Changing The Banking Industry

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In the last number of years, the way that we manage our finances has changed significantly. While in years gone by, a traditional brick and mortar bank branch was an integral part of the local community, this is simply not the case anymore. Conveniently accessing your financial data from an app on your device and carrying out daily transactions from any location, at any time, is quickly becoming the norm.

With an increasing number of digital banks entering the market, banking technology is changing at an incredibly fast pace. Almost 75% of smartphone users use an app to access their banking and more than 60% of mobile users prefer to use their mobile device to manage their finances rather than opting for a desktop. These figures highlight just how much of an impact that apps are having on how people are managing their finances and on the banking industry as a whole.

Let’s take a look at just a few ways that apps are changing the banking industry and what we can expect going forward.

Easier For Banks And Customers

Apps make every aspect of our lives easier from ordering food to booking a taxi and communicating with our loved ones. Banking apps allow customers convenient access to their banking information 24/7 365 days a year providing a quick, easy-to-use and incredibly convenient service. For banks, these systems make it easier to streamline banking processes, enabling financial institutions to operate more efficiently than ever before.

Improved User Experience

Having the ability to manage your finances, complete financial transactions, pay your bills and even apply for loans directly from your device makes for an effortless banking experience. The banking industry has utilised apps to provide a seamless user experience, offering customers a convenient way to view their accounts. Providing 24/7 customer support via email, online chat and social media allows banks to serve their customers in a way never before possible.

Direct Marketing Capabilities

Banking apps allow financial institutions to communicate their marketing material directly to the customer via the app. With this additional marketing stream, banks can inform customers about new products and offerings as soon as they become available. For the banking industry, this means more sales, increased brand awareness and improved credibility with both existing and potential customers.

International Capabilities

The world today is a smaller place than it ever has been before. As travel has become more affordable and people have more disposable income, people are travelling internationally more regularly. The business world has also become increasingly global with both large and small businesses selling their offerings to audiences all over the world via a range of online means. Banking apps allow those travelling internationally to stay in control of their finances, regardless of where in the world they are. The financial industry can benefit from this as they can increase customer retention, allowing customers to easily access their accounts when they are aboard, even for extended periods.

Apps Will Continue To Have A Major Impact In The Banking World

Banking apps have already had a huge impact on the banking industry and they will continue to play an important role moving forward. As technology continues to improve and security protocols are strengthened even further, digital banking and banking apps will play a crucial role for customers. The banking industry is already embracing this change, making a transition towards providing more online and in-app banking services to customers. This trend is expected to continue moving forward as customers become more familiar with completing in-app transactions and get used to the convenience and ease that mobile banking can provide via advanced banking apps.

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Samantha Acuna is a writer based in San Francisco, CA. Her work has been featured in The Huffington Post, Entrepreneur.com, and Yahoo Small Business.