- 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:
- Wells Fargo
- 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.