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5 Banking App Features Worth Investing In

If you want to engage your users to be proactive, a new set of features might motivate them to make better financial decisions with just a few swipes.

The banking industry is rapidly changing. Millennials heavily rely on mobile banking apps, and some of the biggest names in the industry had to find new ways to interact with their tech-savvy users. 

Mobile banking was considered an addition to other banking services in its inception, but today it became an industry standard. As technology develops, users are looking for new ways to resolve all their banking issues using only smartphones and tablets. 

As everyone became more accustomed to voice recognition assistants, predictive messaging, and advanced insights, the financial institutions have leveraged this technology to create more appealing offers. However, as users’ habits change, banks are racing to offer more convenience through advanced features. 

Going Towards Big Transformation

Adapting offline products and services into an online app was the initial strategy for bank digitalization. However, times have changed and banks have provided better services in order to stay on the market. 

The concept of a super app caters to everyday needs and allows users to use one instead of several apps. One of the best examples of a super app is WeChat in Asia and there’s a number of neobanks trying to create something similar in the US and Europe. 

In the next few years, we might see new super apps that will replace between 2 and 6 banking and payments apps to ensure easy and simple payments. 

Why It Matters to Improve Your Mobile Banking Services

Major banks such as Bank of America, Wells Fargo, and JPMorgan released new features to retain the old and attract new customers. As neobanks are seen as market disruptors that attract many young customers, brick-and-mortar banks are struggling to stay in the game. 

Today, one of the most prevalent trends is a shift from analog to digital. Consumers want to handle their transactions through smart devices, especially millennials and gen Z that are slowly becoming the biggest earners. 

New Features Lead to New Opportunities 

A mobile app cannot attract new customers to your bank. If you offer additional tools, features, and analytics, your potential customers can see the value in what you are offering. 

Take a look at features we believe to be worth your attention as they are something a generation of new bank users is focused on. 

1. Advanced P2P Payments

While there is less cash in commercial transactions, peer-to-peer (P2P) payment solutions are becoming increasingly popular. Mobile apps with P2P integrations ensure that the user’s money is safely transferred to another account. The banking app usually requires the user’s ID number, or in case it’s a neobank phone number. 

The bank can easily oversee the transfer of money and doesn’t charge a fee for transfers. However, if you use a third-party provider, you might have to pay a fee for every transaction.

2. QR code and invisible banking

QR codes are an easy way to make quick contactless payments. Being an easy way to enhance customer’s mobile payment security, QR codes are slowly becoming a must-have feature for any banking app. 

With a number of countries using QR codes on invoices to complete payment, e-invoicing, and remittances. It significantly reduces the time needed to enter all information in the accounting or banking system and send transactions almost automatically.

3. Voice-activated virtual assistants

Voice payments are one of the features with the highest adoption rates. According to Statista’s research, their adoption rate in the USA will be more than 31% by the end of 2022. Bank app users can activate Google Assistant, Siri, or Alexa to pay their bills, rent, or make a new transaction. 

Since new generations of users enjoy using virtual assistants, this feature could help you position yourself as a progressive banking service that offers a personalized approach and efficient communication.

4. Buy Now, Pay Later (BNPL)

Buy now, pay later (BNPL) feature is gaining popularity due to its convenience and easy approval process. Not only that your clients will be able to shop more, but they can choose how to repay that money and keep their credit score intact.

5. Cardless ATM withdrawals

Cardless ATMs allow users to do transactions without inserting the card into the machine. By linking the mobile phone with the device, you can communicate with it to complete basic transactions and reduce contact points. 

Big banks like Bank of America, Chase, BMO, Wells Fargo are already empowering their apps with features like cardless ATMs to keep their clients safe amid COVID-19 and allow them to use ATMs safely. 

Other advanced features

The generations of users are changing and it's more important than ever for banks to follow. By successfully integrating best practices from social media platforms, banking apps can give users something more than just a simple app. 

Block unreliable merchants 

Advanced savings

Traditional saving methods are slowly becoming outdated and inconvenient. Obviously, there are many benefits when it comes to saving money and most bank users want to plan their savings without the need to visit their bank and talk to someone.

Advanced geolocation is a good way to save time for users looking for a nearby ATM. As nobody wants to run around or get lost, bank apps are offering precise geolocation so they could navigate users to physical branches or to the nearest ATM. 

Final Thoughts 

Customers' needs are rapidly changing, and your banking app should keep the same pace. What was considered special just a few years ago quickly became a standard in the industry. If you want to build a profitable banking solution, new features will put you right on track. 

 

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This post is from a series of posts in the group:

Banking Strategy, Digital and Transformation

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