Mobile Banking Trends 2021: Top Insights and Features to Keep in Mind

Have mobile banking trends changed that much in 2021? The on-demand economy has reshaped the ways people are doing business today. No need to worry about working hours or geo—modern online banking services offer flexible solutions for all customers. How should your business attract new clients and retain the existing customer base? That’s where digital banking trends come in handy.

It’s hard to imagine a successful mobile application without a simple yet stylish interface, fast navigation, responsive customer support, and thought-out features. Bank AmeriDeals took it into account when creating a tool that can leverage geo to pinpoint reward offers. Wells Fargo makes it possible to set appointments easily. Barclays added an integrated borrowing calculator within their mobile application. All of them know what their customers want.

This article by OpenGeeksLab shows the importance of the financial system going mobile. Keep reading to discover 11 takeaways that bear a critical message: adapt now or risk disruption tomorrow.

What Stimulates the Demand for Mobile Banking Solutions? Key Stats

What is the best way to understand some of the mobile banking trends for 2021? Let us show you some convincing stats from different reliable sources.

• More than 70% of customers from the four largest American banks apply mobile applications; every fifth citizen uses this software.
• Gen Zers and millennials are the two categories of users who pick multi banking applications most often. Almost 100% in each category apply such tools for various operations (for example, checking balances and credit scores on the go).
• Also, 62% of Generation Z is already using biometrics actively.
• Scandinavian countries were the initiators of mobile app development and usage for banks. Currently, more than 70% of Nordic populations possess a digital identity used for digital banking and cryptocurrencies.
• Business Insider reveals that 64% of users will check mobile features before deciding whether using this particular app makes sense.
• One-third of clients who use mobile banking tools share that this sort of experience makes them choose specific digital only banks.
• KakaoBank made it through by onboarding more than one million clients in five days after its launch thanks to streamlining Know Your Customer (KYC) and back-office operations supported by artificial intelligence (AI) and machine learning (ML). That is the story of the initial virtual bank in South Korea.
• As stated by CSI, digital onboarding is the second most vital tech tendency for digital banking systems. Mobile app development is in the first place.
• Bank of America has one of the best mobile banking apps with 29 million clients globally.
• Credible sources fairly admit that a new digital client costs 77 dollars vs. 138 dollars for non-digital users.

It is fair to admit that users value such things as simplicity of the interface, efficiency, overall design, entertainment, cost-saving, self-service, automation, mobile onboarding, and security when it comes to choosing mobile bank software. Based on the recent feedback, customers prefer apps like Chase, Chime, Citibank, Wells Fargo, Bank of America, USAA, Ally Bank, and Varo as they meet most requirements.

How Banks Can Benefit from Mobile App Development

Mobile banking solutions are useful not just for customers. They possess plenty of perks for financial organizations that wish to keep up with mobile banking trends 2021.

1. Higher Return on Investment (ROI)

A couple of ways to provide ROI are known in this field. Users are making transactions and getting more engaged.

Notably, Bank of Ann Arbor from Michigan returned funds they contributed to their new solutions based on mobile banking technology trends. The bank aims to be a dynamic, growing, and sustainable community organization, so it adapts to all the latest trends. In three months, this company noticed:

• 10% in goods per client
• 23% in ATM withdrawals
• 56% in income from transactions
• 90% increase in point-of-sale (POS)

Client dedication went up after they released their native app.

2. Reduced Expenses

Following mobile banking trends is the key to saving money. Financial systems benefit from using mobile software as it assists with cutting costs. It works this way:

• Covers greater geo, meaning your organization is not limited to working only in specific areas
• Handles high loads, meaning that automated solutions will take the loads off human shoulders
• Increased accuracy, meaning that because people are involved less, machines do their job preventing mistakes
• Minimized cost of customer service, meaning that you save more as you recruit fewer staff members

3. Enhanced Experience

Some digital-only banks would need desktop applications or chatbots instead of separate software development. Special online banking tools offer more perks, and that is why it makes sense to involve them. Such solutions are highly safe and comfortable. For instance, it isn’t possible to bring your personal computer in your pocket or small bag or use fingerprint login if you choose an option different from the mobile banking app. One-third of those who have such applications share that is one of the reasons for staying loyal to specific banks.

4. Improved Safety

This is one of the most vital mobile banking future trends. Both online and mobile banks have certain security threats. Extra hardware security prevents most of such issues. An example of a solution is a set of security solutions like biometric data. Gesture patterns are another way out. In combination with two-factor authentication, these steps guarantee better security for all parties.

Security is also provided by the fact that people do not have to leave their homes to visit physical entities. It matters during the COVID-19 pandemic.

5. Collecting Client Analytics

With actionable metrics properly collected and interpreted, one can detect issues and raise service quality by eliminating those obstacles. It is an effective way to detect how users feel about an application and what to improve. Three basic categories of metrics exist: acquisition, client satisfaction rate/engagement, and performance.

6. Extra Channel of Marketing

Each time you decide to come up with a new feature and present it to users, create and send corresponding notifications. They should be aware of what’s new. Many custom applications have a dashboard or develop and submit messages and various types of notifications. Customers should keep in touch with all of your novelties.

For example, BNP Paribas experienced a 60% increase in the App Store rating. That is because they included targeted push notifications.

11 Hottest Mobile Banking Trends for 2021 and Beyond

Now, it is time to analyze the last couple of years and forecast mobile banking trends that will boost in the upcoming few years. Here is what every decision-maker should pay attention to.

1. Mobile App ATM Connectivity/Cardless ATM

It is one of the major mobile banking trends for 2021. Cash withdrawals with no cards are convenient as many people lose their cards. It is only possible if your card or main account is not blocked. Earlier, cardless ATMs carried certain risks. Their developers keep on improving their security, and Bank of America is one of the entities to provide self-service machines. Except for such equipment, one can retrieve funds with the help of Apple/Google Pay. Also, it’s possible via QR codes.

Another option is applying near-field communication, known as NFC. Some big banks allow getting money without cards. Since 2020, the cardless approach keeps on growing in popularity.

2. The Rise of Biometric Authentication

Biometric login is a convenient way to authorize access to private info within a preferred software. It is not necessary to memorize an account username and passcode each time you launch a custom application. It is enough to apply biometric credentials to verify identity and access personal data with ease. On the whole, the process looks this way:

• A new user downloads your app. He/she opens an account.
• With the help of a questionnaire or poll, you quickly offer them a suitable financial good.
• The software asks users to take photos of their IDs and submit them.
• The tool detects the user’s face, taking a photo, and compares it with an attached ID.
• A special facial recognition tool matches the pictures and provides access shortly.

BMO and MasterCard have invented an original method. They added a “selfie pay” option, which allows authenticating a person for online shopping.

3. Focus on Cybersecurity

The primary mission of most online banking services is to guarantee cybersecurity to those clients who prefer working online. It involves:

• Touch ID (fingerprint login). Ability to identify a person by their fingerprints that a smartphone tool can scan.
• Facial recognition. Ability to identify a person by their face alone. HSBC uses this approach actively.
• Voice recognition. Ability to identify a person by their voice alone.
• TAN/PIN systems. Special authentication and authorization schemes used in e-business.
• Strong password. It should contain both uppercase and lowercase letters, numbers, figures, and be at least six-eight digits.
• Cellular network. Speedy voice/data communication network with enhanced multimedia and roaming capabilities for supporting cellular devices.

4. Voice Command and Voice Recognition

No need to touch the device any longer—smart bank systems will do that. Users only have to record their voice, and applications will react to their voice commands. It is way more convenient than typing in every query manually and surfing menus. Integration of voice recognition AI is our future. It stands for safer online operations.

PayPal is one example that allows making payments via conversations with Siri.

5. ML, AI, and RPA

Artificial intelligence and machine learning are the key success factors of digital progress and development. They play a great role in enhancing the client experience. The recent tendencies also involve robotic process automation (RPA) that allows for faster operations and automation of procedures. In 2020, for instance, it was trendy to create and add chatbots to mobile banking app development. ML and AI make it possible to process great amounts of real-time data and analyze behavioral patterns. This innovative technology may even decide on loan amounts, periods, and other terms.

For example, an artificial intelligence vendor Versive designed a cybersecurity solution known as VSE Versive Security Engine. They insist that it assists financial establishments with evaluating huge datasets of operations and security info using ML.

6. Automation and Personalization

Automating transactions makes payments fast and furious. Currently, automation is applied to bill payments, but soon it will even assist users with saving their funds. It will be possible to auto-manage the budget when setting up financial goals properly. Users only have to follow the plans proposed by smart machines. Capital One, in turn, benefits from geo-based data and analytics service Foursquare as it assists with delivering location-based proposals to clients at partner retailers.

7. Big Data Fraud Prevention

As the number of financial organizations goes up and their income skyrockets, online banking systems face higher risks of fraud. A new report for China Tech Threat defines that financial organizations have become the prime target of cyberattacks. Any bank should think about effective prevention measures to stop the spread of cybercrimes.

Big Data is the number one solution. Online banking services can generate huge quantities of client info from various sources. It involves everything from credit scores to profiles on social networks. Reviewing historical data is crucial. It helps every business to obtain a full picture of every user. They can interpret user behaviors and tendencies. Together, it all assists with risk management and improved safety. Except for embracing emerging technology, banks must enable the confluence of convenience so that their clients feel safe.

8. Digital-Only Banks and Blockchain

Banks with no network/brick-and-mortar branches are getting more and more popular. Virtual banks concentrate on the cloud-based infrastructure and perks provided by digital networks. These features make modern online banking systems a flawless environment for blockchain adoption. This tech allows untrusted parties to find a compromise on the state of a database with no middleman. Blockchain makes it possible to propose various financial services without banks involved.

Automating manual procedures like compliance and claims is possible via smart contracts. Those are blockchain-based, self-executing contracts. Finally, distributed ledger tech (DLT) assists financial organizations with providing better management and standards around data sharing/collaboration.

In particular, blockchain guarantees the following pros:

• Simpler prevention of fraudulent activities
• Swift payments
• Easy, quick P2P operations
• Digital identity verification

J.P. Morgan is known to create its own digital coin, the JPM coin, to expand global payments activity. To research blockchain, this bank has initiated the Blockchain Center of Excellence.

The global COVID-19 pandemic also plays a certain role in forming this trend.

9. Ecosystems and Marketplace

Software for bank payments can constitute a separate ecosystem. Marketplaces have shown up in mobile systems. Users have an opportunity to purchase cinema or gig tickets, pay for healthcare services, subscribe to entertainment platforms, and so on. It looks like banks will be integrating tools with social platforms and messengers to improve communication, data sharing, and operations.

10. Edutainment

Mobile banking industry trend that is relatively new—so-called edutainment. From now on, it is not enough to be a place for storing client’s money; banks should serve as financial counselors/support. It almost turned into some entertainment. That is how this term, edutainment, was born.

Mobile applications should educate users on various issues to make them financially literate. After all, not so many people graduate from financial colleges. PayPal is one of the perfect examples that offer skilled managers to assist every client with different problems. American Express has included a similar service in its system. Both have created smart bots in addition to hiring qualified support agents.

Chats powered by ML are excellent for enhanced customer experience. They mirror the human approach so that clients feel like talking to a real person. It makes them feel respected and special. Chatbots speed up the process of obtaining help. Such tools explain how to work with apps, interact with other users and bank representatives, stick to basic safety guidelines, and more. On top of that, bots are capable of evaluating customer satisfaction rates.

11. Open Banking Provides a Boost

Not so long ago, every bank had to disclose client info to third parties. Many customers disliked that fact and even stopped the trust financial system. Open API, however, improved the situation and process of safe database development.

Customers are more satisfied thanks to this approach. This way, API allows for quicker payouts and detailed reports on personal accounts. Barely any of us are using just one bank today.

It makes sense to be a client of several entities: while some specialize in offering loans with low interests, others impose low deposit and withdrawal fees (or no fees at all for certain transactions). Getting most of these perks requires signing up with several digital-only banks. It means that you’ll have a few accounts in different establishments. The solution is to select a provider that acts as a middleman for all systems that you use, and new technology will prevent you from having to sign in to each of your accounts every time.

Barclays represents a brilliant example. It is the first British bank to activate account aggregation inside the native mobile solution. Clients can easily view their profiles with other financial organizations.

Keep Abreast with Up-to-Date Trends to Take Off

Mobile devices will become the primary channel for the financial industry. While there are many advantages, certain pitfalls associated with a threat to security exist. It’s critical to take care of the safety measures at the development stage. C-level executors must bear in mind other features that customers expect to see in applications, such as smart chatbots, biometrics, open API, or cardless withdrawals. It is especially crucial for GenZers and millennials who use such software more than anyone else.

Apps for mobile banks assist users in various ways. Many of them completely change the image of a traditional bank. Society is going cashless, and the world’s bank systems should quickly adapt to avoid losing their customers. That is why online and mobile banking trends are of utmost importance in 2021. New features will be added. Since it may be quite challenging to catch up with all recent tendencies, you might need professional assistance.

If your company plans to build highly secure, cutting-edge mobile software, OpenGeeksLab is ready to lend a helping hand. Our qualified experts will provide you with better insights on the topic and share valuable recommendations on how to develop or improve your digital banking products. Contact us or schedule a free online consultation now!