What are banking apps?
A banking app is a mobile application that can be downloaded from Google Play Store, Apple’s App Store, and Microsoft Store. It helps in accessing your bank accounts and completing monetary transactions from the palm of your hand. Depending upon the bank, you can access and carry out a wide variety of services with the help of your banking app.
Most banking apps allow you to view your account balance, transaction history. Certain banking apps even allow you to update your information (address, mobile number and email), change your branches, request check books, loans and many more.
Why do you need to develop banking apps?
Our day-to-day lives have made developing banking apps, a necessity. It offers many benefits to both the business and consumers.
In this fast-paced world, most people don’t have time to visit a bank, stand in a queue, talk to a cashier and initiate a transaction. People always have mobile phones with them. Therefore, having their bank’s application in their mobiles will greatly reduce the burden on the customers. No matter where you are, you can access your account without visiting your branch. This reliability and user-friendliness boost a positive customer experience.
Reduction in Cost
Mobile transactions are cheaper than transactions at banks or ATMs. They don’t charge extra costs to the customers. This greatly reduces the bank’s operating costs and the need for staff. This minimizes the cost on paper, bill delivery, utilities, supplies and more. The usage of mobile banking apps has reduced the cost to serve customers up to 50 – 70%. They also reduce any human errors that may occur.
Banking applications allow customers to access their bank accounts 24/7. This increases the quality of service and enhances customer loyalty. Implementation of push notifications can also allow customers to know about various service rates, credit cards, loans and more. Inbuilt chatbots and support increase customer engagement, thereby improving their experience. This leads to a higher retention rate of the customers.
Increase in Revenues
Creating a banking application provides the bank with an extra way of increasing their income. Many banks with mobile applications and mobile-only banks partner with cinemas, shops, restaurants, gas stations and retailers to offer discounts and cashback facilities using mutually beneficial partnerships. Automatic transactions, 24hrs service and additional services provided by the mobile applications will increase the customer’s activity which will help in collecting commissions and other extra charges. In-built chatbots can identify and direct customers’ patterns and aid them in completing a transaction. This analysis usually consists of utility payments, online purchases and loans that help the customer by offering propositions, which increases sales.
Related article: Increase Banking CSAT with Conversational AI Chatbots in 2023
Hyperautomation in Banking Apps:
With the advancement of technology, hyperautomation has emerged as a significant trend in banking apps. Hyperautomation refers to the use of advanced technologies such as artificial intelligence (AI), machine learning (ML), robotic process automation (RPA), and natural language processing (NLP) to automate and streamline processes across the banking industry.
By incorporating hyperautomation into banking apps, financial institutions can achieve greater operational efficiency, improved accuracy, and enhanced customer experience. Here are some key areas where hyperautomation can make a difference:
Streamlined Account Opening:
Hyperautomation can automate the account opening process by extracting data from customer-provided documents, performing background checks, and verifying identity. This reduces manual efforts, minimizes errors, and accelerates the onboarding process for customers.
Enhanced Fraud Detection:
Hyperautomation enables advanced analytics and real-time monitoring to detect fraudulent activities and suspicious transactions. By analyzing large volumes of data and identifying patterns, the banking app can proactively identify and prevent fraud, ensuring the security of customer accounts.
Personalized Customer Experiences:
Hyperautomation allows banking apps to leverage customer data and AI algorithms to offer personalized recommendations and tailored financial products. By understanding customer preferences and behavior, the app can provide relevant offers, investment suggestions, and customized notifications.
Automated Loan Processing:
Hyperautomation can automate the loan application and approval process, making it faster and more efficient. By integrating AI-powered chatbots, customers can receive instant assistance and guidance throughout the loan application journey, reducing manual intervention.
Smart Virtual Assistants:
Integrating virtual assistants powered by AI and NLP technologies can enable customers to interact with the banking app using natural language commands. Virtual assistants can answer queries, provide account information, and assist with transactions, enhancing the overall user experience.
By embracing hyperautomation, banking apps can transform traditional banking processes into seamless digital experiences. These advancements not only benefit customers by offering convenience and efficiency but also help financial institutions stay competitive in the evolving fintech landscape.
What are the Mobile Banking Trends in 2022?
As a result of the pandemic, using touchless transactions has become an unusual standard. From small roadside vendors to big corporations, everybody uses QR code technology. This can be only possible if the customer has a mobile banking app with them. Just by logging in to the mobile application and scanning them, and performing further steps, you can do touchless transactions. This method is fast and secure which reduces the chances of card skimming and stolen PINs.
Digital security is important for any mobile banking application. Implementing biometric technology has alleviated any stress that the customer may have when accessing mobile banking. Facial recognition, iris scans, fingerprint scans, and voice recognition are some of the features that biometric identification systems use. More than 56% of users trust biometric methods for banking applications.
Chatbots are AI-powered platforms that many banks have adapted. The need for personalized experience, data, and speed are the main reasons why banking institutions have started to use chatbots. Understanding the customers’ data and conversations with the help of chatbots provides a better customer experience. According to research, chatbots are expected to reduce business costs by up to $8 billion in 2022. It is estimated that up to 75 – 90% of banking queries will be handled by chatbots.
Related article: How to decide on the right chatbot for your banking institution
Hyperautomation in Banking Apps in 2022:
Hyperautomation plays a crucial role in shaping mobile banking trends in 2022. By leveraging advanced technologies such as AI, ML, and RPA, banks can achieve higher levels of automation, efficiency, and customer satisfaction. Here’s how hyperautomation is influencing mobile banking trends:
Intelligent Process Automation:
Hyperautomation enables banks to automate complex processes, such as loan origination, credit scoring, and compliance checks. By combining AI and RPA, banks can automate repetitive tasks, extract data from documents, and make informed decisions faster, leading to improved operational efficiency.
Data-driven Decision Making:
With hyperautomation, banking apps can leverage AI and ML algorithms to analyze vast amounts of customer data. By uncovering patterns, trends, and customer preferences, banks can make data-driven decisions to personalize offerings, detect potential risks, and enhance customer experiences.
Hyperautomation strengthens the security of mobile banking apps by employing biometric authentication, fraud detection algorithms, and real-time monitoring. Biometrics, such as fingerprint and facial recognition, provide an additional layer of security, reducing the risk of unauthorized access.
By integrating predictive analytics into banking apps, hyperautomation can help banks anticipate customer needs, predict market trends, and offer tailored financial products and services. This proactive approach enables banks to stay ahead in a competitive landscape and deliver personalized experiences.
Seamless Integration with Third-party Services:
Hyperautomation facilitates seamless integration of banking apps with third-party services, such as payment gateways, budgeting apps, and investment platforms. This integration allows customers to access a comprehensive suite of financial services within a single app, simplifying their financial management.
As mobile banking continues to evolve, hyperautomation will remain a driving force behind its transformation, enabling banks to deliver innovative solutions, improve operational efficiency, and provide superior customer experiences.
How to build a banking app?
Research and Build a Prototype
Before developing a mobile banking app, it is important to know the market trends and your competitors. Knowing what your users what and how to address them is crucial for developing a banking app. Once you identify what your users want, a prototype has to be created by implementing a structure, logic, design elements, content, and graphics. If any error occurs during the prototype phase, it can be rectified easily.
Any app that is developed should be enforced with security, and if it is a banking app then the security should be impregnable. This is done to protect your data and keep your money secure. Banking mobile applications use a few more layers of security. If your banking app doesn’t pass security rules, then it won’t even be published. Implementing two-factor authentication and an inactivity timer are some of the basic securities that the app developers at Autonom8 do to secure the app.
User Interface and Technology
When designing an app, it is important to choose the best tech stack that addresses all your needs. It could be a native or cross-platform tech stack. Native development needs knowledge of the platform’s framework and code. Usually, complex apps that require security and high productivity need native development. Cross-platform lets you have code shareability. It is a single codebase that lets you run on both platforms. Choosing an absolute tech stack will lower your costs, need for maintenance and also reduce the app development period. Since your customers vary from young adults to older people, the UI/UX design should be easily accessible and easy on the eyes. Your banking app can be customized as per your need at Autonom8. Our developers will heed your wishes and needs and create a useful and easy to use banking app that will address all your needs.
Coding and Integration
Your banking app can be executed with the help of an in-house developers team or you can hire a team of dedicated software developers who can take care of all the important aspects in developing a banking app. Once the app is developed, it has to be integrated with third-party apps like accounting software, expense trackers, document sign software and so on. These third-party apps will be beneficial to the users of the banking app.
Release and Maintenance
After developing your app, it has to be released in appropriate mediums. A dedicated team of software professionals can finetune your app and help you in publishing them in Microsoft Store, Google Play Store, and/or App Store. All three of these stores have different requirements that the banking apps should follow for submission and release. So, they have to be checked for adherence before publishing.
Feedback and Update
Pay attention to the reviews and feedback after publishing your banking app. Address and fix any bugs that may exist to ensure the best user experience. You can always ask influencers and area experts to try and test out your app. This will both improve and promote your app. Implementing articles, chatbot features and help columns will reduce the money spent on Support considerably.
The world of fintech is constantly evolving. Even though mobile banking will not entirely replace a traditional banking system, it provides the customers with a user-friendly and secure banking experience. Contact us today for more information on how we can build your banking mobile applications using AI technology.