How Next-Generation Mobile Banking enables brighter future for Financial Services?

The use of online and mobile banking is likely to shoot steadily from 2021 to 2024, and the Asian market would contribute the largest portion. According to the research giant Statista, in 2020, the Far East and China accounted for more than 800 million active online banking users which is anticipated to cross the mark of whopping one billion by 2024. Thus, the next-generation of banking is reckoning.

The ease of digital banking offered by mobile applications and online services has been unprecedented and account holders do not need to visit their respective branches for trivial reasons. Mobile banking offers almost all the services that a branch would offer and therefore, today, a bank existing and doing good business without a mobile app is next to impossible.

The dawn of next-generation banking technology

In a quite short span, mobile banking systems have advanced manifold and the entire digital banking technology has shifted to a handheld device and all transactions are possible through a few links. Improving user experience in mobile banking app helps to provide users with beautifully designed options making the process of financial transactions very simple. While it is a norm, newer techniques have revolutionized it further.

As technology advances, contemporary Artificial Intelligence and Machine Learning have made mobile banking a lot easier and more convenient. The next-generation mobile banking technology would bring revolution in the ways transactions and trades happen through banks and finance companies.

Why does next-generation mobile banking matter?

Next-generation mobile banking is a term that refers to the use of advanced technologies and innovative features to provide customers with convenient, secure, and personalized banking services on their mobile devices.

A fintech app development company today prefers building next-generation mobile banking solutions as they hold significance by improving customer satisfaction, retention, and loyalty altogether. Plus, it can increase efficiency in operations, overall revenue, and profitability in bank business. Here are a few noteworthy benefits of next-gen mobile banking technology:

• Quick and convenient transactions: Customers can do several banking tasks as they can check account balances, transfer money, pay bills, depositing checks, and much more with just a few steps on their mobile phones.
• Better security and privacy: Bank customers can use biometric authentication like fingerprint or facial recognition to log into their accounts by verifying their identity automatically. Customers also get real-time alerts and notifications for any doubtful or deceitful activity on their accounts.
• Apt, personalized, and customized services: Bank customers experience tailored offers, recommendations, and advice based on their needs, behavior, and financial objectives. It is also possible to access financial literacy and wellness tools that improve their financial education and well-being.
• Improved customer engagement and loyalty: With next-gen mobile banking, customers have various ways to interact with their banks including chatbots, video calls, voice assistants, and social media. Mobile banking also enables them to provide feedback and ratings for the services they receive from banks and obtain loyalty programs and rewards.

Which next-generation mobile banking app is better for you?

Next-generation mobile banking uses technology and innovation to offer impeccable banking services with more convenience, customized, and security compared to traditional banking methods. For example, banks can use Web3 in fintech to improve security by protecting customer data and transactions.

Next-generation digital banking comes with features related to savings accounts, money transfer or management, bill payments, prepaid cards, and financial insights through smartphone apps. Such smart banking can also help customers save efforts and money by accessing financial inclusion and protecting their data from cyberattacks.

Mobile banking with cutting-edge technologies is a better alternative to traditional banks that can cater to customers’ growing requirements in the digital age; today, considering next-generation banking with mobile phones has become a norm for banks.

The best features of the next-generation mobile banking systems

Here are some of the stunning features you find in the contemporary mobile banking systems adopted by reputed banks worldwide. Mobile app development companies also update themselves and are capable to produce some stunning digital banking products using these magnificent facilities.

Artificial Intelligent mobile banking

Artificial intelligence (AI) is transforming the latest mobile banking industry by inducing new methods to deliver personalized, cozy, and secured services to bank account holders. AI helps banks to analyze customer behavior, preferences, and plans to have tailored bank products and services. For instance, loan lending app development could use AI in order to offer customized EMIs, tenure, and other loan preferences for customers.

AI can also enhance fraud detection, risk management, and customer support by using advanced algorithms and data analytics. AI is not only a tool for improving efficiency and customer satisfaction, but also a strategic driver for innovation and growth in the next-generation mobile banking sector. Thus, hiring expert AI developers can be seen as an opportunity of growth for the business.

Neobanks

Neobanks are a new type of mobile banking that offer digital and innovative financial services. Unlike traditional banks, neobanks do not have physical branches or offices but operate entirely online. Neobanks aims to provide customers with more convenience, transparency, and personalization than traditional banks. Some of the benefits of neobanks include lower fees, faster transactions, better user experience, and more tailored products and services.

Biometric authentication

Biometric authentication is a technology to verify the identity of a bank user. It is performed on the basis of certain physical or behavioral characteristics like fingerprints, faces, voices, or iris recognition.

Biometric authentication in mobile banking enhances the security and convenience of any transaction because it terminates the need for a password or PIN that the user is likely to forget, lose, or get stolen. Such authentication also prevents fraud and identity thefts as it ensures that only an authorized user has access to his or her bank account.

Fintech in the next-gen mobile banking

Fintech refers to the use of technology that provides financial services with more convenience, efficiency, and accessible way. Fintech is considered the next generation of mobile banking because it enables customers to manage their funds such as transfer, invest, borrow, or buy financial products on their smartphones.

The next-gen mobile solutions would also help build fintech startups to adopt innovations like crowdfunding, peer-to-peer lending, robo-finance advisors, cryptocurrencies, and more. Finance technology transforms the way customers and businesses interact or deal with money or fiscal matters.

BaaS – Banking as a service

Banking as a service (BaaS) is a platform that enables third-party companies to provide financial services to customers through next-generation mobile apps. BaaS enables neo-banks, fintech companies, and other non-banking bodies to have the core banking infrastructure to provide seamless, tailored, and secured banking experiences for their clients.

BaaS is a key driver of innovation and convenience in the latest mobile banking because it brings down barriers while creating new venues for customer acquisition and retention. BaaS also assists traditional banks as they can take advantage of their existing assets and skills to have new revenue streams while expanding their customer base. It is the future of mobile banking due to its empowerment of customers to have a solid range of financial products and services 24/7 from anywhere and on any device.

Robo-advisors and personalized banking

Robo advisors are automated financial advisors based on powerful algorithms and data. They are engineered using ML technology to provide custom-made investment suggestions and portfolio management. Robo finance advisors in mobile finance and banking can help customers save time and money. Plus, there are fewer chances of human error occurrence.

Next-generation mobile banking is a platform that adopts robo advisors to offer personalized suggestions and other features like biometric authentication, voice and chat interfaces, and gamification to improve the overall banking user experience. With advanced ML providing an extended reach to all these functionalities makes selecting the best machine learning developers more important.

Voice banking

Voice banking is a new way that enables users to access and manage their bank accounts through only their voices. Next-gen banking with voice recognition is done through a smart speaker, smartphone, or any other device supporting voice recognition. With this, users can perform several banking tasks to check account balances, transfer funds, pay bills, or set up alerts.

Voice banking with the latest digital banking technology solution is convenient, safe, and quick. Users can have the natural language to speak to banks with no typing or tapping required on the interface. Voice banking means customized and proactive services based on bank customers’ needs and behavior.

For instance, one can ask for financial suggestions, get customized offers, or get notifications about their spending habits. Voice banking is the next generation of mobile banking that will transform the way finance is managed.

Privacy and security in the next-generation mobile banking

Privacy and security are two of the most crucial factors of next-generation mobile banking. Customers want their personal and financial data to be safe from unlawful access, fraudulent transactions, and cyberattacks.

Banks are now adopting advanced mobile finance technologies and best practices to make sure that their apps and web portals are secure and trustworthy. And to get this implemented efficiently and effectively it is advised to hire remote developers who are experienced at providing you the best solution based on your Fintech business requirements.

Some of the key challenges and solutions for privacy and security in next-generation mobile banking are:

• Authentication: Banks should verify the authenticity of their customers before mobile banking allows them to access their accounts or perform any tasks. Traditional banking like passwords or PINs is not enough anymore because these can be easily guessed, hacked, or compromised. Next-generation mobile banking uses biometric authentication like retina, fingerprint, face, or voice recognition to provide top-level security and convenience for customers.
• Encryption: Banks need encryption of the data when it is transmitted between their servers and their customers’ devices. Plus, it is also required at the time the data is stored on local devices. Encryption is known to restrict hackers from intercepting or tampering with the data and, therefore, saves the customers’ privacy even if their devices are compromised. Next-generation mobile banking uses strong encryption algorithms and protocols like AES-256 or TLS 1.3, that ensure the confidentiality and integrity of the data.
• Compliance: Banks must comply with the local laws and regulations that protect the privacy and security of their bank consumer data in various jurisdictions. Next-generation mobile banking assures implementation of these laws and regulations that vary depending on the location, type, and purpose of the data collection and processing.

Next-generation mobile banking is powered with the ability to use data minimization, anonymization, and pseudonymization techniques; additionally, it also assures consent management and transparency tools to respect the customers’ rights and preferences regarding their banking data.

What does the next-generation mobile banking services cater to gen-z?

• Convenience: Perform banking transactions anytime, anywhere.
• Instant Payments: Transfer money instantly in real-time .
• Robo-Advisors: Get personalized investment recommendations.
• Lower Costs: Save on fees compared to traditional advisors.
• Personalized Offers: Access tailored discounts and rewards.
• Financial Insights: Gain valuable information about spending habits.
• Integration: Manage multiple financial aspects in one app.
• Enhanced Security: With advanced security measures ensures safety of financial data and transactions.
• Accessibility: Mobile banking has made all the banking services quite accessible.
• Time Efficiency: With mobile banking services complete various financial tasks efficiently and quickly.

Ready for next-gen mobile banking?

Due to the increase in global trade and improving GDPs of most countries, the financial transactions and need for mobile banking is likely to rise. This is the best time to get into next-generation mobile banking; hence, whether you are a bank or a businessperson venturing into banking or finance business, you may read a complete guide on banking software development and insist your developers embrace the next-generation banking technology to kickstart your company with the best boost.

Adarsh Nair

The world is now very much compact, we call it Global Village as a result of digitization and this impresses him! He likes to explore the nooks and corners of the incessantly modernizing world and marvel technologies. He leads the Digital Marketing Team at Prismetric. His passion for digital trends taught him the knack of reaching the huge digital mass to find business opportunities instantly. He writes articles about digital, technical and marketing tactics for business enhancements.