App-based banking is one of the fastest growing channels in the financial services sector, which is unsurprising when taking into consideration that applications are the top area of investment in mobility for organisations globally.
Banking will go beyond online and mobile banking.
Online banking, followed by mobile banking, was the first waves of digital disruption, as customers realised the availability of more convenient ways of managing their finances than the traditional branches. The capabilities have developed over time from being fairly basic to highly intuitive and un-restricted by location. We have now even seen the first bank, based in Indonesia, which allows users to transfer funds via Facebook as long as they are connected as ‘friends’.
Leveraging the analytical proficiencies of the cloud will also propel the services banks can offer to their customers into a predictive, responsive and real-time mobile experience.
Digital revolution happening in banking:
- Wearing Your Bank on Your Wrist.Similarly to the trends that are affecting the wider mobility space, financial enterprises are beginning to offer wearable devices to their users to augment their processes even further.
Barclays, for example, have developed a smart wristband that can be used by customers to pay for everyday items in a quick, efficient fashion, without the need for cash or cards. This wearable revolution that many experts forecast could soon be a common method of managing finances and navigating daily life across the globe.
- P2P Technology.The revolution will surpass even the trouble of taking out cash through ATMs. One would even skip writing physical checks as P2P technology gains momentum. Well, P2P technology enables an accountholder to transfer money within seconds to another account holder either online or through his mobile device. Large banks like JP Morgan Chase, Wells Fargo and Bank of America are already using this technology. This technology is slowly gaining popularity as more and more customers are finding mobile payments simpler and quicker.
Barclays Pingit App uses such technology. Pingit, which was launched in 2012, currently allows you to send and receive payments using mobile phone numbers, without needing to exchange bank account details. The app is open to people who don’t bank with Barclays, as well as it customers. Once the app is on their smartphone they can send money to anyone over 18 with a UK mobile number and a UK bank account who has registered online to receive payments.
- Card Freeze – Today there is the possibility for a cardholder to log in via a mobile app or website and put a freeze on transactions. Thus, within a few clicks and no phone call, the card is put on ice. If it surfaces in the next day or three, log back in and reactivate it.
An example of such service is offered is by First Bank in Mississippi which allows cardholder to lock their card temporarily until you find it. Your card will automatically unlock after 15 days (unless you unlock it earlier) with the service available on personal credit and MasterCard debit cards.
- Mobile-Banking-Smartphone-Cameras– smartphone camera is the perfect conduit for mobile banking innovation as accountholders embrace the idea of conducting financial business via pictures.
National banks have begun offering mobile remote check deposit, which allows customers to deposit checks using their smartphone cameras. Wells Fargo, for instance, has extended its mobile remote deposit app in the entire US.