It’s expected that by the end of this year, around two billion people will be using mobile banking.
New technologies have dramatically changed the world of finance in the past decade. Right from checking the bank balance on a cell phone to handling the finances of a company online, digitalization has changed the whole dimension of the banking industry.
When combined with the various online banking tools that are available, it has never been easier for consumers to pay bills, make purchases, and manage their money. Mobile banking has led the charge with about 22.39 million US households with mobile banking at a primary bank.
To highlight some of the exciting new technologies, we have shared several emerging trends in banking landscape to watch out for in 2020.
Latest Trends in Mobile Banking
Take a look at the mobile banking technology trends that must be followed to stay in the race in 2020:
1. Mobile App ATM Withdrawals
This is an exciting trend for people who hate rifling through their wallet and one of the crucial new trends in banking. In the next couple of years, many banks will be introducing near-field communications technologies to their ATMs and integrating apps like Apple Pay, Google Pay, and Samsung Pay.
Some banks will also be adding QR codes, which you can scan to log into your account instantly. These technologies will take the hassle out of using ATMs.
2. More Biometric Authentication
One of the main challenges that mobile banking faces is security. If your phone is stolen, what is stopping the thieves from accessing your bank accounts or making purchases with your money? The answer to this problem is integrating more sophisticated biometric technology into mobile devices.
In the coming years, we can expect to see the fingerprint scanner and facial recognition software being added to more mobile banking apps. Biometric identify checks will eventually replace passwords completely. Not only will biometric authentication add more security to mobile banking, but it will also make it more efficient and convenient.
3. Voice Banking
Most mobile phone users are now familiar with performing voice searches using Google and Bing. It’s a convenient way to search the internet while on the move. Voice commands are expected to make a move to banking in the next few years, which will make online banking more secure and serviceable for consumers.
Many banks have already added voice recognition as one of the methods for two-way authentication. It acts as an additional layer of biometric security for accessing bank accounts.
Some financial institutions also allow customers to make inquiries about transactions, transfer money, and report stolen cards using voice queries. As voice recognition technology improves, we expect to see voice banking enter the mainstream as well.
4. Machine Learning and Smart Bots to Improve Customer Service
One of the most exciting online banking trends is the delivery of personalized real-time customer service via “smart bots.” A smart bot is an artificial intelligence (AI) system that uses machine learning, predictive analytics, and cognitive-communication to emulate a real human being.
Smart bots will allow mobile users to obtain instant customer assistance via their device. The bot will be able to determine the support request quickly and instantaneously provide the user with the required assistance.
It is expected that smart bots will eventually be able to provide far better support than a real human being and help customers avoid wasting time.
5. Big Data Will Improve Fraud Detection
Financial institutions are increasingly using “big data” to analyze consumer and market trends. Big data refers to large data sets that are analyzed using computers to reveal patterns, trends, and relationships. It’s one feature that shouldn’t be missed in a banking app.
In the coming years, more financial institutions will be harnessing big data to identify security threats that might affect mobile and online banking. Several financial institutions have revealed plans to harness the vast amount of data gathered through the use of mobile devices to identify fraudulent activity. This will also help businesses identify risks within their organization and protect customers.
6. Easier Debt Management
Thanks to easy access to credit and online shopping, it’s become easier to incur consumer debt in the United States. Unfortunately, it can be tough to successfully pay back debt, particularly if it’s credit card debt. If you’re struggling to manage your debt, this next mobile trend in banking will provide some much-needed relief.
There have been several sophisticated mobile apps like Debt Tracker Pro and Debt Eliminator released in the past few years, which are designed to help consumers deal with debt. They provide useful spending breakdowns and can help you understand the best way to pay back your debts.
There are also apps which round-up the cost of your purchases and help you pay back at the end of the month (an effortless way to put aside some money for debt repayments).
So, we can expect these apps to become more powerful in the coming years.
Future of Mobile Banking
For many people, the concept of mobile banking might sound new, but with the introduction of smartphones, the adoption rate is on a roll. Also, with the launch of advanced communication infrastructure and 5G services, people are bound to embrace mobile banking technology more rapidly.
The other notable banking trends in line are wearables for retail banking and machine learnings. All these trends are aimed at enhancing the user experience and give added freedom to the users.
We hope you found these mobile banking trends useful. For more articles on managing your finances, please bookmark our website and follow us on social media.