While 2020 was marked with uncertainties for all the industries, 2021 was geared towards businesses adjusting their strategies for a once-in-a-lifetime pandemic. Digitisation of user experience, for instance, was at the heart of the pandemic-era innovation.
The pandemic-led lockdowns urged people to adopt digital ways of performing routine transactions. As a result, “95% of transactions moved out of branches post-covid” – as stated by the Chief Digital Officer of Kotak Mahindra Bank in a panel discussion conducted during September 2020. This fact alone speaks volumes about how financial institutions should be investing in building technological capabilities that meet future demand.
The global Mobile banking industry is expected to reach $1,824.7 million by 2026, and financial institutions are taking cues to adopt more sophisticated technologies such as big data, blockchain, machine learning etc., as a part of their end-product to retain customers.
Here is a list of 5 major mobile banking trends to look out for in 2022 that can be seen as part of the product offering of most financial institutions.
Five Mobile Banking Trends to Look Out for in 2022!
An apt explanation of how digital has become a trivial part of each sector can be summed up in the words of Microsoft CEO Satya Nadella, who said: “we’ve seen two years’ worth of digital transformation in two months.”
It is a no-brainer that brands had to intensify their digital initiatives if they wanted to stay on the radar of their current customers and attract new ones.
In line with these developments, the budding mobile banking trends will dominate the financial sector in 2022 and beyond.
1. Transacting on an ATM using touchless tech
Touchless transactions have become the new normal everywhere since the looming fear of pandemic caught everyone off-guard during its onset.
Many businesses already offer a screen-based QR code technology that can be utilised to complete touchless transactions. Its subsequent natural adoption is seen in the banking industry via touchless ATM transactions.
This is achieved via the bank’s mobile application, which requires a customer login, scanning the QR code that appears on the ATM screen and performing all further steps such as entering PIN, withdrawal amount etc., through the mobile app itself.
This method makes withdrawals faster and secure and considerably reduces the chances of card skimming and other fraudulent activities.
2. Adoption of big data to prevent frauds
Big Data has contributed tremendously towards allowing banks and other financial institutions to collate customer-centric data from traditional and digital sources and provide a personalised banking experience.
Other than this, a very important use case of big data is preventing fraudulent activities using AI-based algorithms. Furthermore, by recognising their customers’ transaction patterns and banking history, big data assists banks in pointing out deviations and detecting suspicious activities.
For example, a customer’s credit card will be immediately frozen should the same be used for transactions in entirely separate parts of one country at similar times.
However, with big data, a card provider can predict general trends by analysing their customers’ information and pinpointing fraudulent behaviour even before the card or account is compromised.
3. Using biometrics in mobile banking
A robust mobile banking infrastructure rides on the wave of the highest forms of digital security, and using biometric technology has only quickened the pace of the same.
Adopting vital points of biometric identification systems such as facial recognition, voice recognition, fingerprint scans, iris scans, and even vein pattern authentication are becoming the go-to security standards globally.
Biometrics is touted to replace PINs completely and render them obsolete in the near future. With 56% of consumers trusting biometric methods to authenticate transactions moving forward and the anticipated market size to reach $24.59 billion by 2023, it would not be wrong to say that biometric technology would be the next big thing to be adopted across all verticals of the financial landscape.
Chatbots are conversational AI-powered platforms that have already become the norm in the banking arena. The need for adopting chatbots is realised by three significant requirements, i.e. with –
- the need for speed.
- the need for data.
- the need for personalisation.
By delving into personalised consumer data and conversations that help solve their pain points, the financial industry uses chatbots to boost operational efficiencies and deliver a holistic customer experience. To prove the point, here are some vital statistics to know about chatbot trends:
- Chatbots are expected to cut business costs by $8 billion by 2022.
- 75-90% of healthcare and banking queries are expected to be handled by chatbots.
Sectors that manage vast volumes of human interaction, such as banking, are set to deploy chatbots into their products, taking away dependency on physical customer service teams immensely and forward queries to chat agents.
The adoption of blockchain has enabled this by diverting the focus on digital-only banking because blockchain simply works.
Even though blockchain has been around for some banks to store important data, the financial sector is keen on adopting the same for improving their speed, efficiency, accuracy, and security.
The Road Ahead
The increasing popularity of creating a mobile banking experience for customers is no longer a possibility for the financial industry it is a priority that can no longer stay on the backburner.
A competitive mobile banking landscape is already shaping up, which is set to bloom into a full-fledged industry rife with intuitive mobile apps built using cutting-edge technology.
Finezza offers cutting-edge lending lifecycle management and credit evaluation services to banks and NBFCs. Contact us today for more information on how Finezza can transform lending for you using agile technology and AI.