The digital world is much more than we think and it is evolving the way people interact and do the business daily. Android app development advancements and new releases are continuing to determine the future of the banking sector across the world. The demand for digital banking experience from middle-class men is changing the way of operation or process of the banking sector.
Starting from the retail and mobile banking to neobank startups, mobility solutions and applications have their impact in every sphere and turning banking into a digitized future.
Retail Banking Future
In the retail banking industry, the banks provide certain services to consumers – like savings and checking accounts, loans, debit and credit cards. With the growing demand of consumers to access these financial services online, new banking technologies are introduced, which are now re-conceptualizing the whole industry of retail banking.
Technology designed for mending retail banks’ operational efficiency is putting its positive impact on the market. As per the report issued by market experts, 39% of retail banking executives told that technology has helped them in reducing costs while 24% told that it is enhancing the customer experience.
More retail banks are coming up with the platforms in the BaaS (Banking-as-a-Service) sector to stay up in the market.
Mobile Banking Future
Mobile banking option is most preferable for users who want to make deposits, monitor their spending, account transfers, and earnings. The mobile banking sector has 89% of users who are making use of its features.
The most critical concern of consumers when choosing mobile banks is security. The data breaching risk creates the demand for services that protect user data.
Mobile wallets are the next up-and-coming feature in the mobile banking industry. Mobile wallets are software apps that focus on convenience by allowing users to make online purchases or in-store purchases using their smartphones without even using their physical credit or debit card.
Successful options of mobile banking also have money management features that assist users in cost-cutting and improve savings. This is something that each millennial wishes to have.
Online Banking Future
Mobile banking has now become more popular than online banking and overall the number of online users has diminished across the world. Mobile banking is growing at great speed as compared to online banking and almost half of all online customers are using mobile banking facilities.
Even with such a high level of popularity, some banks still don’t provide mobile facilities to their customers, such as online bill payment and reward redemption. This is the main cause of the shift of users to online banking.
Neobanks Future
Neobanks are the digital-only banks redefining the banking sector across the globe. It is a type of digital bank that has no branch. In other words, neobanks don’t have any physical presence at a specific location and run entirely online.
The future of neobanks in the US market is promising. These banks don’t have any bank license and depend on bank partners to provide services. Even people in India are massively using Google Pay, PhonePe, Paytm, and other online payment methods today. Digital-only banks offer the fluidity which cannot be expected from traditional banks.
Neobanks provide hassle-free account creation facilities to customers, initiate seamless international payments, have a user-friendly interface, super-fast transactions.
Technology Trends in the Banking Sector
It is simple to understand that the future of banking technology resides in the hands of customers, especially Gen Zers, who take technology as a tool for enhancing their lives. A common trend in banking technology is the use of API to make proprietary data in reach for every user having consumer’s permission for accessing it.
APIs could be used to import customer account details via the bank’s mobile app. Apart from this; new technologies like AI and blockchain will also put a huge impact on the banking world through 2020. There is no denying that banks around the globe are exploring possibilities residing in blockchain technology to streamline processes and cost-cutting.
Consumers are already encountering AI bots in the front office of the banks. These bots are being used by banks for smoother customer identification and authentication.
Final Verdict
Since the banking industry is undergoing so many changes, consumers need to get connected to the bank for more information. While some traditional banks are getting in touch with Android app development company to get the best banking app solution for their bank, consumers prefer cashless transactions using wallets and other mobile banking options. To retain the customer base, banks need an advance solution that brings more convenience to its consumers.
Author Bio – Rosina De Palma is a programmer at Nex Mobility—an Android App Development Company. I have a professional development team that provides the best outsourcing services and gives end-to-end solutions to mobile apps programming.
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