Mobile payment apps are finding increasing adoption all over the world, leaving traditional banks behind. Banks need to develop their own money management apps for iOS and Android in order to beat fintech startups at their own game.
Fintech has taken the financial world by storm and turned a lot of rules of traditional banking upside down. According to this survey by Forbes, 75% of consumers say that usingmobile payment apps allows them to have more control over their finances.
Moreover, there is a very marked generational shift in how people do financial transactions. Around 35% of the workforce comprises millennials and this generation believes strongly in a mobile-first approach to banking.
For a long time, the traditional banking system has been reluctant to embrace these changes and this has allowed fintech companies to capture the attention of the younger customers in a big way. Apart from homegrown mobile payment apps like Paypal in the US, Monzo in the UK, and PayTM in India, many big tech companies have also started participating in the digital transformation in payment transactions. Following the success of Wechat in China, Apple, Samsung, Google, and Amazon have launched their own mobile payment apps across the globe.
In the past few years, major banks like Bank of America, JPMorgan Chase, and Wells Fargo released mobile apps as a response to rising fintech companies and their adoption hoping for a digital transformation in payment transactions. Today most banks across the world have a mobile app. These apps allow people to make basic transactions through their mobile app without having to go to the bank physically.
However, to truly take on fintech companies, these banks will need to have money management apps for iOS and Android that can truly take on the fintech companies. Here is how banks can benefit from having best-in-class mobile apps.
Social Media Marketing
Money management apps for Android and iOS can help connect to customers' social media accounts. This helps the bank get access to a new avenue for digital promotion which is very essential in today’s landscape.
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Acquire New Customers
Many mobile payment apps for iOS and Android have an option for customers to register on the app itself and upload their documents. Banks too have started taking this route for acquiring new customers. Having a mobile app that allows users to open their own accounts is a great way to acquire customers.
The convenience and ease-of-use of mobile payment apps are invaluable, especially for millennial customers. If the app is of a quality that compares to the best fintech apps out there, customers will consistently use the mobile app for transactions.
Increase in Transactions and Market Share
A user-friendly money management app for Android and iOS is one of the easiest ways to make sure that customers who have accounts in multiple banks use their account in your bank for the maximum transactions. This will make sure that you have increased deposits as well as higher market share when compared to competitors.
Data analytics on your mobile app will give you a great insight into which banking services do customers usually look for. You can then customised promotional offers and deals for them accordingly. Sending these offers via push notifications on your money management app for Android or iOS is one of the most effective ways to retain and convert customers.
The Future of Banks and Mobile Payment Apps
Even with the influx of fintech solutions, about 87% of consumers (in an Accenture survey) said that they would continue to use physical branches for some of their banking needs. This means that it won’t be easy for fintech companies to disrupt the banking system altogether.
Banks need to take advantage of this reality and move quickly in order to regain the loyalty of their younger customers. State-of-the-art money management apps are the best way forward.
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