Effective digital transformation is changing the face of different industries across the world. The banking & finance industry is also witnessing a massive transformation with mobile financial services technology.
This has transformed the banking services, operations, and overall customer experience. In this blog, we are going to discuss why banks are investing in mobile financial services technology by consulting a mobile app development company.
Before we discuss the reasons, we should learn about the use of mobile technologies in Banking;
What is Mobile Financial Services Technology?
When we talk about Mobile Financial Services Technology, we are basically talking about FinTech technology. This concept basically combines finance with technology. Hence, businesses taking advantage of modern technologies to improve their processes and services are known as FinTech businesses.
FinTech as a subject has been there since the inception of ATM technology. However, Mobile Financial Services Technology only grew with the rise of smartphones and better internet connectivity around the world. Moreover, today’s FinTech apps depend on world-class technologies like Blockchain, artificial intelligence, machine learning, data science, etc.
Reasons Why Banks are Investing in Mobile Financial Services Technology
These are some of the prominent reasons why banks prefer mobile FinTech solutions to simplify their operations and services;
1. Maintenance Costs are Going Down
Banks and finance companies are able to keep the maintenance cost down by relying on mobile FinTech app solutions. A lot of processes can be automated with the help of FinTech applications. Thus, banks and financial institutions can eliminate the need for intermediaries and unnecessary workforce. FinTech apps are more streamlined by removing the need for overhead maintenance costs.
2. Improvement in Customer Experience
Customers these days expect a mobile experience for every operation that they do on the internet. Thus, investment in mobile technology brings your financial services to the convenience of users’ fingertips.
The customer experience can be drastically improved when you provide critical services like instant payments, checking account balances, and instant investment for mobile devices. Therefore, users don’t have to leave their mobile devices to access important financial services.
3. Improvement in Security Protocols
Security is a major concern in the banking and finance industry. In fact, cybercriminals often have their prying eyes on user data. Traditional web technologies for financial services are more susceptible to hacks and cyber attacks.
Modern FinTech applications use military-grade encryption technologies and cybersecurity tools. Thus, banks and other financial institutions have better assurance of cyber security from their FinTech applications running on mobile platforms. Ultimately, the end users of FinTech apps are able to enjoy better protection from cybercriminals.
4. Better Financial Inclusion
Every bank and financial institution has the goal of adding more people to the banking ecosystem. However, this might not be possible with traditional and complex finance solutions. Not everyone is prepared to handle tons of paperwork and formalities to access banking and financial services.
A mobile FinTech application makes financial inclusion faster and more effective. People are able to easily connect with banking services to invest or save their money. Many banks are already reaching the best FinTech app development company.
5. Competitive Advantage
Not every bank or financial institute has developed a mobile FinTech solution. Thus, you can attract their customers who are anticipating digital mobile solutions for financial services. Developing a robust mobile solution for financial services will help you gain a competitive edge over your competitors in the market.
6. Lightning Fast Transactions
Speed is everything in this digital age, and users love speed in their financial transactions. Thus, developing a mobile FinTech application lets us take advantage of the latest technologies that ensure speed and performance. Common financial services like fund transfers, loan management, and investments become much faster with mobile technologies.
Traditional banking infrastructure might not provide the same speed with the flow of transactions. In fact, some of the financial services might take days to process due to tons of paperwork.
7. Higher Efficiency
Investing in mobile FinTech applications can improve, streamline, and automate your financial services. Online services make less dependency on lengthy paperwork. Plus, the reduction of dependency on humans makes the processes less susceptible to errors and mistakes. Banks and financial institutions can update the information in real-time through their mobile app to make processes more streamlined.
Much can be done by financial institutions in a very short period of time when they rely on FinTech apps. The robust architecture of modern FinTech applications simplifies a lot of complex processes in the banking and finance industry. Ultimately, businesses improve their overall efficiency and also reduce the cost of their operations.
8. Improvement in Customer Engagement & Sales Opportunities
The whole world is moving towards a mobile experience. Thus, developing a FinTech mobile app can increase your possibility of engaging customers and boost sales opportunities. By engaging your customers in your mobile app with various services, you can ensure better revenue opportunities.
This can be done by including gamification features, reward points, attractive deals and offers through your mobile FinTech application. In this way, financial institutions not only retain their existing customers but also create new possibilities of sales opportunities.
9. Gain Complete Customer Insights
Data is the new oil! Every successful business is leveraging the power of customer insights to effectively optimize its processes and strategies. The competition is getting stiffer in the banking and finance industry. Developing a FinTech app with modern technologies will give you access to critical customer insights. The constant flow of reliable and real-time analytics helps in making well-informed decisions. Thus, financial institutions are able to make instant decisions to optimize their processes and strategies.
10. Innovative Technologies
FinTech mobile apps are known for implementing some of the most innovative technologies. Future-ready technologies like Blockchain, Artificial Intelligence, Machine Learning, and Data Science are truly changing financial institutions.
Moreover, implementing a FinTech application helps to become a future-ready business that gracefully embraces change and innovation. For this reason, the investors also take interest in businesses that work with modern technologies instead of age-old legacy infrastructure. Technologies like Blockchain can transform the entire banking industry into a decentralized industry with transparency and security.
11. User-Friendly Applications
Traditional banking apps are often heavy and clunky. They might have a lot of features and technologies but user-friendliness is often overlooked. For this reason, banks and financial institutes are investing in FinTech applications to let their users enjoy user-friendly and intuitive experiences.
Moreover, these applications provide users with smoother interfaces, simplistic menus, color combinations, and dashboards. Above all, you just need to understand the customer’s needs and preferences while building a FinTech application.
Developing FinTech App with a Mobile App Development Company
Developing your own FinTech app is not an easy task. You have to work with a lot of platforms, architectures, security protocols, APPs, and more. Thus, you should hire FinTech app developers from a mobile app development company like MobileCoderz.
They have an extensive portfolio of FinTech clients and an expert team of developers, designers, QA professionals, and project managers. Above all, they create robust, high-performance, secure, and reliable FinTech apps. Ultimately, you can get the assurance of a world-class banking infrastructure that optimizes your financial services for a perfect mobile experience.