Over the last decade, mobile banking apps have surged in popularity, with banks and financial institutions eager to place a mobile banking app with compelling mobile banking features right in their customers’ pockets. This strategy has largely succeeded, as many users now incorporate these apps into their daily financial routines
According to Statista, the number of digital banking users in the U.S. is projected to reach around 217 million by 2025. However, as these apps become more mainstream, merely having one isn’t enough for financial institutions. Customers increasingly expect a smooth and seamless banking experience. Those institutions that can deliver this will gain a competitive edge.
In this blog post, we’ll explore the must-have mobile banking features that enhance customer experience and boost retention. Let’s dive in!
Mobile Banking Market: Overview
The mobile banking market is growing rapidly, with projections from Statista suggesting that nearly a billion people will be using online banking worldwide by 2024. This steady rise in users is largely due to the convenience and accessibility that mobile banking offers. For instance, a report from Worldmetric.org found that 53% of users feel that mobile banking helps them stay more aware of their financial situation. Additionally, over 70% of customers appreciate features like remote deposit capture, which allows them to deposit checks through an app.
Research and Markets also highlights that 79% of banking app users want to see their recent transactions, while 90% want quick access to their account balance. These statistics show that mobile banking is not just popular; it’s becoming the preferred way for many to manage their finances. As users become more satisfied and reliant on these services, it’s clear that mobile banking is more than just a trend—it’s here to stay.
For banks looking to thrive in this competitive landscape, focusing on customer experience is key. A report from Citi notes that 80% of users with high-performing apps are more likely to stick with their service providers. This means that banks that fail to enhance their mobile app features risk falling behind those that prioritize user-friendly innovations. In today’s market, creating an effective mobile banking app is essential for engaging customers, promoting financial inclusion, and unlocking new global opportunities.
Importance of Improving Customer Experience in Mobile Banking
Customer experience is at the core of every successful mobile banking app. Users are looking for apps that offer seamless navigation, intuitive interfaces, and personalized interactions with their banks. Financial institutions that focus on these mobile banking features can significantly boost customer retention and loyalty.
To achieve this, it’s crucial to understand the needs, preferences, and behaviors of both new and existing customers when developing digital solutions. By leveraging advanced technologies, banks can create tailored services that enhance user engagement. Personalization not only drives profitability but also helps financial brands stay competitive, making it vital to utilize data analytics for insights that inform customized offerings.
For example, features like personalized financial advice, targeted product recommendations, and customized alerts can be integrated into apps to meet ongoing customer needs and support decision-making. Moreover, a well-designed app should allow users to access information and complete transactions effortlessly, all in just a few simple steps. Continuous usability testing and incorporating customer feedback will further refine the app’s design and functionality, ensuring it remains user-friendly and effective over time.
Key Considerations of Mobile Banking Features
- Instant Payments
Instant payments have become the norm worldwide, and banking customers expect more than the traditional methods like writing a check or visiting a branch. They want their banking apps to facilitate payments instantly with just a few taps.
There’s been a noticeable increase in peer-to-peer transactions, with a 2022 study revealing that 45% of respondents used such services to send money to friends and acquaintances. Instant payments allow users to avoid carrying cash, enabling them to make transactions even when vendors don’t accept cards. This feature significantly enhances convenience and improves the overall customer experience.
While various peer-to-peer payment services exist, customers tend to trust solutions offered by their banks more. In case of any disputes, they can communicate directly with their bank, rather than dealing with a third party, which adds an extra layer of security and peace of mind.
- AI-powered Chatbots
Customer service is a key factor in fostering loyalty, no matter the industry. To make banking apps more personalized and improve service availability, banks and financial institutions should consider offering 24/7 support. By integrating conversational technologies like chatbots, they can handle multiple incoming requests simultaneously, reducing response times from an hour to just seconds.
AI-powered chatbots can mimic human interactions by responding to customer inquiries in real time, tracking recurring issues, and providing a tailored experience. This feature not only enhances customer satisfaction but also accommodates users across different languages at any time. For more complex cases, banks can analyze customer data and apply algorithms to better understand and address individual needs. This approach is crucial for digital transformation, enabling banks to compete more effectively against challenger institutions.
- Financial Planning Tools
Banking apps collect a wealth of data about customers’ financial habits, including where they shop and what they spend their money on. Financial institutions can leverage this information to provide valuable guidance on financial planning.
These apps can offer personalized insights into monthly savings and suggest areas where users can cut back on expenses. For those with mortgages or loans, the apps can provide strategies for paying them off more efficiently.
Additionally, banking apps can include educational tools to help users understand various banking products and solutions, empowering them to make informed decisions.
By incorporating these financial planning tools, banks can encourage customers to engage more with the app and build a stronger relationship with the brand. This ultimately leads to higher adoption rates and improved customer retention.
- Clear In-App Notifications
Clear In-App Notifications is one of the most vital mobile banking features. Clear in-app notifications are essential for any banking app, serving as a fundamental aspect of user experience rather than just an added feature. Given the diverse user base, banking apps can sometimes feel confusing or overwhelming. In addition to chatbots, effective sound design and straightforward UX copy can greatly enhance the overall customer experience.
It’s crucial for banking apps to prioritize the notifications they send and the language they use. Vague or unclear messages can cause anxiety since they relate directly to users’ financial well-being. Each notification should be tested with users before being launched to ensure clarity and effectiveness.
These notifications also play a vital role in keeping customers safe. The app should alert users to any suspected fraudulent transactions and, in high-risk situations, prompt them to verify transactions.
Key notifications should include:
- Transaction alerts
- Upcoming bill payments
- Risk of overdraft
- ATM withdrawals or large purchases
By implementing clear in-app notifications, banks can enhance the customer experience while also creating opportunities to cross-sell products through tailored messaging.
- QR Code Payments
QR codes are becoming increasingly popular across various industries, including banking and retail, because they enable fast, contactless payments. With this mobile banking feature, customers can make purchases without needing a bank card—just scan the QR code and confirm the payment, all while keeping their data securely encrypted.
Recent surveys conducted in China show that about a third of citizens are using QR codes for their everyday purchases, and the number of QR code transactions is expected to grow by 16.4% from 2020 to 2024. This trend is also spreading in the Asia Pacific region, particularly in Singapore, where retailers and restaurants include QR codes on receipts and bills, allowing travelers to easily scan and pay in their local currency.
- Investment Management
As more people look for ways to earn passive income alongside their salaries, investing has become an attractive option. Recognizing this growing demand, mobile banking apps can offer investment management services as a valuable addition. With access to assets like stocks, exchange-traded funds (ETFs), real estate, and cryptocurrencies, many service providers are now enabling users to easily acquire and manage their investments.
The investment management feature can be designed to help customers oversee their portfolios and gain real-time insights. This way, users can effortlessly invest in their preferred securities with just a few taps on their phones.
- Cardless ATM Withdrawal Services
Commonwealth Bank offers a convenient cardless ATM withdrawal service that allows customers to submit the transaction amount and confirm it online. Once confirmed, they receive a transaction code to enter at the ATM for cash withdrawal.
Similarly, Wells Fargo has introduced a card-free access feature in its app, utilizing NFC technology to read card information through a symbol in the mobile app. However, users must first transfer the amount they wish to withdraw from their bank account into their digital wallet before accessing the funds.
Customer-Centric Approach to Banking Apps
While it’s tempting for financial institutions to focus solely on boosting an app’s profitability, adopting a customer-centric approach is essential for retaining users and continuously enhancing their experience. By prioritizing customer satisfaction, banks can foster loyalty, which in turn drives sustainable growth. A strong focus on customer experience is a proven strategy for improving the bottom line—an objective for every organization.
With nearly two decades of experience, AGEST specializes in understanding customer needs and elevating their experiences. Contact us today to learn how we can help kickstart your project!
