The mobile-first approach has surrounded the corporate world. Every industry sector wants to leverage the benefits of mobility and the banking sector is no exception. Mobile banking has significantly reduced the percentage of consumers who visit brick-and-mortar branches for various transactions. A survey has revealed that as many as 70% of US-based customers access banking services through a mobile app.
It is fair to mention that mobile banking apps have enhanced comfort and increased convenience for the customer. However, we are yet to get all the banking and finance-related services in a single app. The mobile app development company focuses on emerging technologies like Big Data, AI (Artificial Intelligence), Blockchain, and IoT (Internet of Things) to come up with robust and comprehensive mobile banking solutions.
A few of these futuristic concepts are in experimental phases, whereas some technologies have already found a place in the mobile app development process. We can certainly expect that all these emerging concepts will be mainstreamed in the coming years. Let’s go through the role IoT, Big Data, Blockchain, and AI are going to play in taking mobile banking to the next level.
Let’s start with Big Data.
Big Role of Big Data in transforming mobile banking
When it comes to data storage, analysis, and sharing, big data comes into the picture. This concept enables users to collect, analyze, and share more data for making informed decisions. It is based on cloud computing technology that offers a huge storage capacity and higher processing power. Big data analytics can extract and analyze the relevant data from the huge data lakes remain in the cloud, and based on this analysis, the banking and finance firms can improve customer services.
With the help of big data-related features, the banking app can store and process the data related to user behavior. This specific data is utilized to determine the customer’s expectations and requirements. For example, based on the user’s activity on the mobile screen, the banking company can judge the preferred communication method of the users. On that basis, they can either call the customers or respond to them through ‘Live Chat’ functionality.
Mobile banking app can collect a variety of data of banking customers and big data can enable the banks or financial institutions to make the most of it to meet the customer’s needs in the best possible way. As a result, BFSI companies can get a higher conversion rate.
How IoT transforms mobile banking
IoT (Internet of Things) is a major technology concept that gains ground swiftly across the corporate sector. As per the Statista survey, the total number of connected devices worldwide has exceeded 26 billion in the year 2019, and this number is expected to cross 75 billion by 2025. The IoT concept is responsible for the rise of Big Data Analytics and AI.
Applying this revolutionary technology to mobile banking, we need to consider mobile devices, apps, sensors, and other connected devices. For example, after arriving at a branch, the bank’s customer can register through a mobile app and get updates through beacons till their turn comes. Concepts like ‘screenless banking’ and BLE-based banking come to light because of the IoT concept. The IoT app development company can help your banking business come up with IoT-enabled mobile banking app.
Blockchain and mobile banking- A match made in heaven
Blockchain technology has evolved beyond bitcoins and other cryptocurrencies. Top firms like ING, DBS, and Visa have embraced this technology because of its enhanced safety and convenience of online transactions. The blockchain technology is highly secure and reduces the payment processing fees significantly while eliminating the need for intermediaries. Blockchain development is, therefore, a preferred choice for the BFSI sector. It enables you to offer a quick and transparent payment process online.
Blockchain can also enable the banking business to provide a smart contract facility. It allows transactions only if certain conditions are met. It is a highly secure method of transaction. Encryption and built-in security features are a few characteristics of a blockchain-based app. It is fair to mention that blockchain will soon get mainstreamed in the BFSI sector and online transactions will be handled by this innovative technology.
Blockchain-powered apps will make mobile banking more secure than ever and we can expect that Apple and Google will come up with separate blockchain-based app stores once the demand increases. Banking and finance institutions can also develop private blockchains and manage them through mobile solutions. The real estate, manufacturing, and retail sectors will remain the biggest beneficiaries of blockchain-based apps as these sectors have to deal with large volume online transactions.
AI makes mobile banking smarter than ever
Finally, we have AI (Artificial Intelligence), which is ready to bring revolutionary changes in the way the BFSI sector provides services. AI is one of the fastest-growing technologies that is swiftly adopted by companies worldwide. As per the prediction of McKinsey & Company, around 70% of companies will embrace AI by 2030. Broadly speaking, AI is going to bring automation with a human touch across various industry sectors.
Mobile app developers want to integrate AI-based features in the banking app to provide a more pleasant and personalized experience to the customers. We can classify this technology into five categories:
- RPA (Robotic Process Automation)
- NLP (Natural Language Processing)
- VA (Virtual Assistant)
- ML (Machine Learning)
- Computer Vision
AI has already started influencing our personal and professional lives. Smart, voice-based personal assistants, and chatbots are the biggest examples of AI.
Let’s understand how AI works. Firstly, NLP allows devices and apps to convert human instructions into actions. Then ML teaches apps to recognize patterns and respond to them accordingly. Finally, RPA gives them a human touch. What is more interesting is AI can be readily integrated with Big Data and work wonders in the BFSI sector. However, banks have to ensure the safety of the voice-activated payment system. As technology advances, we will have secure transaction experience in voice-activated payment as well.
The mobile application development company strives to build robust mobile banking app solutions to enable the BFSI sector to leverage the benefits of futuristic technologies. In the near future, we will see the combination of advanced features based on these technologies will change the shape of mobile banking.