Banking software development has transformed the entire industry making it more advanced and technology-savvy. This has happened largely due to the introduction of mobile technology. Every year, the number of smartphone users is growing, which translates into a significant increase in the need for mobile banking. In this article, we will consider what mobile banking is and the key advantages it offers.
What is mobile banking?
Mobile banking is a service that a bank offers in order to provide customers with the opportunity to make financial transactions using a smartphone or a tablet. Using mobile banking, customers can pay bills, transfer money, receive information about new services 24/7 from everywhere. In order to provide this service, banks turn to software development companies to develop a mobile application that will meet all the business requirements for security and functionality.
Top 5 benefits of mobile banking software development
The advantages of mobile banking for clients are obvious (easy access, convenience, high speed of receiving services and information), banks themselves can reap the benefits from it. Below see the top 5 reasons why implement mobile banking.
#1 More clients
Mobile banking allows making a great contribution to the development of the bank’s brand which means attracting more customers. Statistics say that a mobile banking app is also one of the main reasons why customers choose one or another financial institution for future cooperation.
#2 Faster services
With mobile banking, not customers go to you, but you go to them. Using all the advantages of technological progress and modern smartphones, you can generate more services (for example, photo card recognition) thereby increasing customers’ loyalty.
#3 Lower expenses
With mobile banking software, banks can substantially reduce the expenses on:
paper printing and delivery;
extra workers, and more.
The cost of mobile transactions is much lower than those via ATMs. So, with mobile apps banks can reduce expenses and at the same time increase efficiency.
#4 Increased ROI and customer engagement
Mobile banking aids financial institutions in influencing customer engagement and ROI. On average, a mobile app helps banks reduce the expenses by up to 15% while increasing profits from selling various services tenfold. First, mobile banking clients use more services and therefore spend more money. Secondly, a good mobile banking app allows you to retain the existing customers longer. Also, through the application, people are more willing to spend money and they make transactions through your bank. Your bank receives more income precisely from the users of the mobile banking services which, of course, must be taken into account.
#5 More attention to security
Last but not the least benefit is security. With a mobile app, banks become more concerned about security issues and therefore put more emphasis on it. Multi-factor authentification, encryption techniques, safe data storage generate confidence among your clients.
Above is just a short overview of the most significant advantages of mobile banking. Stiff competition, innovative technologies, and business models make big banks release the power of mobiles. If your bank lacks such an app then we advise turning to a banking software development company. But never forget to put the security of your clients’ money above all.