It is obvious, without any fact checking, that the banking industry has seen massive changes from time to time. While every move or trend in the banking industry was aimed at creating more ease for people, especially when it comes to managing personal finances, a bigger role has been played by mobile native disruptors.
Over the years we have seen cards dominate our wallet, but as soon as the world decided to move on, our mobiles became the wallet itself and it looks like the future will remain the same. This was possible thanks to the desire that Gen Z and Millennial audiences had together to make banking at their fingertips. Their preferences have spawned innovative brands of mobile financial services that have been introduced with new compliance and regulatory policies. So, with this, a competitive industry has also emerged.
However, the changing face of the industry at this point has never been easier. At the same time, in different situations, the challenger and more established banks were struggling to keep up with the ever-increasing demands for personal finance services.
GlobalWebIndex has decided to conduct a detailed analysis of the increase in mobile banking trends and looking at the statistics provided, one can see the global potential of mobile banking and how it can also help businesses to identify the way forward for trends safer, faster and more innovative banking. .
Mobile banking can build customer loyalty
According to data collected through research, 44% of UK and US millennials plan to switch banks in the next 12 months. The reason for their decision is simple, as they accuse established banks or, say, large corporations, of always being too slow to respond to digital innovation.
This is giving way to smaller digital-only challenger banks and financial services to reach people’s mobile screens and cater to their mobile banking needs in an exclusive way. So, once a user gets used to the ease and time-saving of mobile banking, he enjoys transacting, paying bills, transferring money and monitoring financial affairs right on his screen.
Another statistic proving the importance of mobile in the age of internet banking showed that 73% of consumers in the fourth quarter of 2019 used the service in the last month and taking a deep dive into it, mobile has become the favorite consumer absolute with 59%, followed by laptop with 32% and tablet with 7%.
If the above data seems a bit too large, the Global Mobile Payments Market Report also stated that mobile banking services are expected to grow at an annual rate of 33% between 2019 and 2026, with a value reaching 457 billion. dollars at the end of the period.
Computers or “traditional” devices are comforting for older age groups. But as the majority of the online banking market belongs to the 25 to 34 age group, it leads to paying attention to the needs of the most important customers – the millennials to handle financial affairs in the near future.
And the largest cohort of the global online population has high expectations of the banking industry.
So what exactly does millennials expect from digital finance?
The graph above clearly illustrates that the trend of mobile banking is mainly driven by consumer behavior and the next wish of customers is for mobile banking to become part of their lifestyle.
Today, online bankers have access to a wide range of media and so it is time for them to try omnichannel strategies to deliver a seamless customer experience that should go beyond shopping.
To be specific, companies need to achieve a cohesive cross-channel experience that brings more value to people’s lives.
When people were asked what they expected from online banking in 2020, 43% of people said they would like more customer-centric services or products that would help them simplify their banking. life. 35% agreed that bespoke or personalized products will work.
As global banking services are expected to rely heavily on mobile for times to come, the requirement to meet customer expectations will continue to be high as smartphones continue to bring possibilities and convenience to all aspects of a person’s life.
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