How mobile banking features are impacting the way people transact
Updated: Dec 7, 2022
Mobile can be a core part of banking strategy. Individuals these days navigate their surroundings in fundamentally different ways due to these handy devices. An extension of this ‘second brain’ is the use of individualised mobile banking experiences for a variety of functions related to finance.
Mobile banking has emerged as the preferred method for consumers to make deposits, account transfers, and track what they earn and spend. This can be seen from the behaviour of the general public.
One hundred per cent of Malaysians who participated in a Palindrome Communications survey said they frequently use mobile banking. This demonstrates both Malaysia's strong internet connectivity penetration rate and the public's “stickiness” with mobile banking. It might also signal the end of more conventional banking practices.
With regard to accessibility, mobile banking can also help financial service providers reach vast unbanked populations. Consumers used to count on banks to retain their money, pay them interest, and even offer guidance and other in-person services. These days we have online banking, fintechs and even neobanks (although conventional banks and ATMs are still around and in use).
In terms of functionality/services, mobile banking can be used to transfer money, deposit checks, and check balances, providing complete remote control over a person’s financial situation at all times.
The super app era
Consider a core difference between Western business apps (which are product-centric) and apps in China that come with complete ecosystems.
Beyond China (in Southeast Asia), there are super apps which some started as a transportation or instant messaging apps). Conventional financial organisations might not be able to better understand their customers due to siloed data. Super apps, however, thrive on data and due to access to large amounts of data, can help with financial data management and analytics.
A super app can even contain its own in-app currency for users to buy items, make reservations and send gifts. Through open APIs and the sharing of data between software, further integration is possible and easier.
Super apps can also help keep information more secure by storing a user’s financial information in one ecosystem instead of it being scattered across an array of risky networks.
On the topic of security, financial apps can use a username and password for mobile app sign-ins and provide even more layers of security (such as multifactor authentication). There’s also biometric authentication that allows you to log in using a face or fingerprint scanner on your mobile device.
Notifications can also be used to alert you when your spending exceeds your account balance. Automated functions let you transfer money into savings on payday automatically and securely, and help you establish spending limits on your cards. With mobile banking apps, you can also get customer support with just a tap/swipe. There’s also the ability to get updates to your device/software remotely and electronically. Virtual updates can help ensure that your financial tools are constantly up to date.
QR codes in physical formats such as through stickers can be used on restaurant tables to fulfil several finance-related purposes (such as taking and processing payments). A lot of data can be encrypted and stored in QR codes and, in comparison to more conventional payment methods such as debit cards, security can be enhanced. With regard to security, one-time credit card numbers, which are frequently used in e-commerce and connected to a credit card account, could also be replaced with QR codes.
Integrations with digital wallets
The concept of a wallet has evolved and it is now more than just a place to hold money. Wallets are now usable for BNPL (buy now, pay later), cryptocurrency, and international payments. Digital wallets are becoming more connected to the overall financial ecosystem and empower loyalty, commerce, and more.
Some key digital wallet developments include:
- Open and semi-open payment networks
- Evolution from closed-loop payments
- Front-end engagement
They have become promising alternatives to conventional payment systems (which used cash, cards, and checks). These alternatives can offer more practicality, as well as security, for day-to-day use. Other notable developments include NFC payments, mobile web payments, and SMS or direct carrier billing.
Automated money saving
Autosaving apps can calculate how much you can afford to save, and then transfer funds from your bank account to a virtual savings account automatically. This can help you build savings easily.
Such apps could be helpful if you have trouble setting money aside or don't know where to begin. Some of these apps may "round up" your purchases to the closest amount and save the change for you, while others might determine how much you can afford to save each week and automatically transfer money into a separate savings (or investment) account. They can help maintain your commitment to your savings goals by putting your saving habit on autopilot. Things can still be in your control though without you having to think too much about it because you can determine how frequently you want automated transfers to take place from your checking account to your savings account.
Some other mobile app capabilities to help with your savings efforts include built-in calculators to determine how much your savings could increase if you raise your contributions, and analytics to help you gain a better understanding of how far along you are with your savings goals.
Avoid using cards and cash
If your card is missing, stolen, or misplaced, calling the card emergency number to report the loss of the card and getting a replacement card can be a hassle. However, with a mobile banking app, it can take just a few short taps/swipes to stop/block the card. Unblocking the card if you find it again can be just as easy. Preventing wastage from reissuing cards that have simply been misplaced is a big part of what makes the process via mobile superior. With mobile banking, you can also get 24/7, real-time payments and not have to memorise complicated bank account numbers.
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Article powered by: www.palindromecommunications.com
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