- The convenience and quickness of completing financial transactions via an app is attracting consumers' attention.
- Below we've outlined the state of the mobile banking industry, and how banks are staying on top of evolving market trends.
- Do you work in the Banking industry? Get business insights on the latest tech innovations, market trends, and your competitors with data-driven research.
Transferring money from one account to another by simply tapping a button, and depositing a check by taking a picture of it, are just two common mobile banking features that banks are providing to customers.
US mobile banking penetration is rising amid the coronavirus pandemic, as is consumers' reliance on the channel. Below we've outlined the state of the mobile banking industry, and how banks are staying on top of evolving market trends.
What is mobile banking?
By now, most competitive banks offer their customers mobile banking -the ability to complete financial transactions via their smartphone or tablet. In order to keep up with growing demands of digitally-savvy millennials and Gen Zers, both digital and legacy banks must continue adapting to mobile market trends to remain relevant.
Mobile banking usage statistics
Mobile banking is already a pervasive trend; according to Insider Intelligence's Mobile Banking Competitive Edge Study, 89% of survey respondents said they use mobile banking. Further, a massive 97% of millennials indicated that they use mobile banking.
Mobile banking is not solely for younger generations, however, as 91% of Gen Xers and 79% of baby boomers also reported seeing the benefits of these services. With a growing appetite for mobile banking, companies realize that remaining up-to-speed on mobile market trends is key to attracting customers.
Features & advantages of mobile banking
Providing a variety of mobile banking services allows companies to support an end-to-end customer experience within the channel. Mobile banking allows users to set personalized alerts – helping them stay on top of their finances by notifying them when it's time to pay certain bills, or when their balances are getting low.
Additionally, paperless benefits to mobile banking help not only protect the environment, but also remove clutter for customers and reduce postage costs for banks.
Mobile banking security concerns
According to consumers who use mobile banking, security was ranked as the most in-demand mobile banking feature. This is understandable in light of Capital One's massive data breach, which followed a record number of big-tech breaches – including Facebook and Google.
Consumers want to ensure that their banking information is secure, which explains why the ability to temporarily turn off a payment card was ranked as "extremely valuable" by 47% of Mobile Banking Competitive Edge Study respondents.
Despite high demand for security features, there are still many banks that have yet to address these concerns with security and control services – giving banks that do offer them the ability to attract potential bank switchers.
Top banks with mobile apps
The top five competitors in the banking industry include:
- Citibank
- Wells Fargo
- USAA
- NFCU
- Bank of America
These banks offer the most in-demand mobile banking features, with four of the five top features belonging in the security and control category.
Even though CitiBank ranked first overall for its mobile-banking features, Wells Fargo took the top spot for a second year in a row in the security and controls category.
A recently added mobile banking category, money management, had the second most in-demand features in the study.
The Navy Federal Credit Union (NFCU) ranked first for its money management features which include the ability to view recurring charges, access to a financial wellness score, the ability to view spending within date ranges, and the ability to set spending limits on a credit or debit card.
Mobile banking trends in 2022
Below are some of the most in-demand features of mobile banking apps according to industry analysts and consumers:
Account Management
Account management tools allow customers to conduct basic banking tasks in-app and help banks enable a single-channel mobile experience. Nearly 80% of Insider Intelligence Mobile Banking survey respondents say mobile is the primary way they access their bank account. A frustration-free digital experience demands superior mobile account management capabilities.
Security and control
Security features give customers greater oversight of their personal information—a need the pandemic has amplified. Security is the foremost factor shaping consumers' confidence in banks' digital channels, and is becoming even more advanced with technologies such as biometric authentication, facial recognition, and voice recognition.
As fraudsters exploit pandemic-driven surges in digital channel usage and online banking, banks must shore up their mobile security offerings to empower customers against the threats.
Alerts
Alerts are a critical way for banks to reach customers, and are likely most effective when they meet customers' preferences in an easy-to-use and interactive format. Banks can gain an edge by investing in less common alerts, such as password changes and purchases above a set amount.