Desperately looking for an ATM of your bank in the dead of night to enquire your account balance or to view recent transactions is quickly going out of fashion. The research shows that 94% of mobile users now prefer doing these operations through the dedicated apps. What other banking and finance software topics are hot in 2015?
What You Will Learn
Mobile banking has come to stay
Mobile banking is increasingly becoming a staple in the service portfolio of the US banks. As of June 2015, clients of 50% of these financial institutions in the country can enjoy making payments from the comfort of their smartphones and other mobile devices. While 25% of the remaining banks are meticulously working to catch up on this service in the forthcoming years.
Although balance enquiries and mobile shopping are booming, currently only 22% of clients use their mobile devices to deposit checks. However, this figure is expected to grow proportionally to the increase in the number of mobile banking users.
Design is the king
Another curious finding reveals that 46% of consumers are now more likely to use mobile banking thanks to the larger devices. So, in a way of speaking, the gadget producers have unconsciously brought about a banking revolution by betting on tablets and phablets.
The reason behind this trend might be usability issues (like small fonts, button overload, dropdown menus, etc.) that might be encountered on small screens. It means that banks had better stay on the safe side and invest in the native (iOS, Android, WP and so on) apps with rich UI rather than looking for shortcuts and opting for cross-platform or browser versions of their Internet banking solutions.
Well-designed mobile banking apps help win more smartphone users (in addition to larger device users) and provide better customer experience. For example, a bank can significantly boost the UX by reducing the number of clicks that they have to make to complete the desired operation or to find some information in the app.
Also mobile banking habits might be a good age indicator: 60% of 20-somethings have switched from swiping their cards to sliding their finger across the screen with no more than 13% of those over 60 joining their league. The remaining 87% of the Third Age banking clients stay true to the traditional payment methods. And they might as well have good reasons for doing so.
Mobile security and human factor
Unsurprisingly, 50% of people who stay clear of mobile banking (across all age groups) are reluctant to use it due to the security concerns. And indeed, as perpetrators and con artists become more tech savvy, they look for loopholes in the mobile banking to plan their attacks at users.
However, there is nothing new under the sun. Previously banks had to innovate in order to secure their steel vaults and strongboxes. Now they have to partner with IT security experts on a regular basis to secure their invisible infrastructure perimeter and do away with software and hardware vulnerabilities. The same applies to mobile banking: it takes more than your regular development and testing to roll out a reliable banking app, and the project scope must also cover security issues.
Still we cannot close our eyes at the facts: out of the 5 ways millennials are in danger of bank fraud four can be directly or indirectly applicable to mobile banking. On the other hand, if we look deeper into these scenarios (mobile shopping, inconsiderate sharing sensitive information online and with other people, using public Wi-Fi), they all have the human factor at their core. So it is not mobile banking per se to blame for scams but rather the way we use it and our awareness (or lack of thereof) of the common risks.
So the bottom line for 2015 is: explore the emerging banking tech with an open mind, enjoy the perks of being mobile and connected, and keep your passwords safe at all times.
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