Mobile banking refers to banking that is done on mobile devices, like smartphones and tablets. Usually, mobile banking is conducted on an app produced by a bank or credit union, allowing users to perform most everyday tasks from their devices. When mobile banking was first released, customers could only perform a few functions from their mobile devices, like checking their balance and transferring money to and from their other accounts. Mobile banking offers so much more these days, including photo check deposits, alerts and push notifications, enhanced security, and even opening new accounts.
One of the biggest and most exciting trends in mobile banking is touchless tech for ATMs. Many banks are beginning to offer a QR code feature within their mobile banking app that ATMs can scan to get cash instead of carrying around a debit card and punching in a passcode. This can greatly enhance security, as people will be less likely to lose debit cards their accounts can be protected by a face ID or a strong password instead of a 4-digit passcode that can easily be guessed.
According to American Banker, most people still prefer to use online banking on their desktop or laptop instead of mobile banking. At the same time, mobile banking is gaining in popularity and may become more popular than online banking in the near future. Either way, financial institutions need to invest in improving both their online and mobile banking platforms to keep customers with differing preferences engaged and satisfied with banking options.
Digital transformation in banking is simply providing more services digitally and online to customers. For banks and credit unions that are beginning to engage in digital transformation, those working behind the scenes quickly discover that it's impossible to provide a whole new online platform to customers overnight. Offering online and mobile services requires a complete overhaul of how business is currently done, and it can take plenty of time, effort, and funding to transform your credit union into a more digital-friendly model.
Although most large banks and credit unions have already done the work of digital transformation, most continue to update their platforms and provide more and more services online to meet the desires of a changing market. The upfront cost and work of completing digital transformation may not seem worthwhile to some business owners. While it's true that you may end up losing money in the short term, you are risking losing customers to banks that offer more convenient options in the long term.
Many consumers want to support small and local credit unions instead of big banks. Still, sometimes the convenience and accessibility provided by the large corporations that have already undergone significant digital transformation are enough to make customers choose big banks instead. Digital transformation in banking has been an emerging trend for years now, but it continues to be one of the most important trends in digital banking, especially for banks that have not yet adopted the process.
Digital transformation usually just means offering digital and online services in addition to those your organization provides in your regular branches. The trend of digital transformation has been taken even further with the emergence of neobanks. Neobanks are banks that are run entirely online. These businesses allow users to open accounts, transfer money, and even apply for loans without ever setting foot in a store, as they don't actually have any physical branches.
International Banker reports that at least 70% of Millennials and Gen Z are "somewhat" or "highly likely" to switch to digital-only banks. This is largely because neobanks are able to offer higher interest rates on savings accounts, lower fees to open and maintain accounts, and high satisfaction rates because they don't have the costs associated with brick-and-mortar branches.
The emergence of neobanks is understandably scary for existing banks and credit unions, but the good news for organizations like these is that many people still prefer to have the option to stop by a physical bank branch for help with more complex inquiries and needs. Neobanks may be able to help those who only have simple needs, but they don't have the advantage of offering in-person help. This lack of options by neobanks can help banks and credit unions that still operate largely in-person stay competitive.
In addition, better service, lower costs, and higher earnings from accounts will continue to be one of the main ways that banks and credit unions can stay competitive in the market. If your organization is currently struggling to attract new customers and maintain existing ones, take a look at how you might be able to improve the mobile banking experience and whether you can provide better financial returns and perks for your customers.
APIs, or application programming interfaces, are a digital platform that allows businesses that are not considered banks to offer banking and financial services by partnering with a bank and sharing information. This can allow banks to reach more customers than they otherwise would, and it can form meaningful partnerships between banks and provide better and faster customer support than ever. APIs seem especially effective for banks that have not yet had a successful digital transformation process, as other businesses may be able to offer better digital tools than a small credit union could access on their own. According to Hubspot, 22% of banks plan to launch APIs in the coming year.
Microservices are a programming process that allows businesses to create new products without having to completely overhaul existing services and technologies. Each microservice can be built and implemented separately, which allows banks and credit unions to scale them individually as appropriate. Microservices can also keep digital solutions more simple and easier to maintain, which can drastically reduce the cost of development and infrastructure costs. Plus, having smaller, separate microservices can also better enhance security, which can keep your credit union and customers safe from hackers and other data problems.
Robotic process automation (RPA) is just what it sounds like: it essentially uses robots to automate several processes within banking. One form of RPA is chatbots that allow customers to get answers to their questions by talking with a bot in the app. Bots can help answer hundreds of the most common questions a bank gets without the need to burden an agent, allowing banks to focus more resources on other more important tasks.
RPA can allow customers to reach out for help 24/7, and it can reduce the need to hire and train agents that focus only on answering the same common questions over and over again. When customers need more assistance than an RPA can provide, chatbots simply connect them with an agent or direct them to a page that may contain the answer they are looking for.
Another new exciting prospect for RPAs is that they can use data to attract more customers, ease the onboarding process, and present new products that certain types of customers may be most likely to want. Implementing RPAs is getting less expensive as they continue to get better and more efficient at helping customers, and banks that don't already use them can greatly benefit.
Banking has always been a complex business, and it has only gotten more complicated with the introduction of digital banking tools that continue to change and update almost daily. Staying on top of digital banking trends can feel nearly impossible, especially if you try to do it all on your own. Fortunately, partnering with a digital customer acquisition platform like Co.tribute can help you better stay on top of new banking trends while increasing the number of customers that start and finish the onboarding process.
At Co.tribute, we use the latest technology to help small banks and credit unions like yours compete with the big banks and continue to grow year after year. We offer several unique products within our state-of-the-art platform, and we can customize our products and services to suit the unique needs of your business. If you're ready to take your business to the next level, schedule a free demo with us today!