The Retail And Mobile Banking Technologies Of The Future
The growing demand for a digital banking experience among millennial and Generation Z is reshaping the banking industry as a whole.
FREMONT, CA: Daily, digitalization is transforming how people connect and conduct business, and banking technology innovations persist in shaping the future of financial services globally. The growing need for a digital banking experience among millennial and Generation Z is reshaping the banking industry.
From retail and mobile banking to neobank startups, technology permeates virtually every area of the banking sector; and its influence will continue to propel banking into a digital future.
Retail banking, alternatively referred to as consumer banking, refers to the specific services banks can provide to consumers, including savings and checking accounts, credit and debit cards, and loans. Consumers' rising demand to obtain financial services via digital channels has resulted in an explosion of innovative banking technologies reshaping the retail banking industry.
Future of retail banking
Technology aimed at raising the functional efficiency of retail banks is having a favorable effect on the market. According to Insider Intelligence, 39 percent of retail banking executives believes technology has the most extensive impact on cost reduction. Only 24 percent believe it has the greatest impact on customer experience.
Retail banks are also creating platforms in the Banking-as-a-Service (BaaS) area to remain competitive.
Meanwhile, mobile banking has cemented its position as a necessary element for financial institutions to remain competitive, especially among technologically aware millennial and Gen Z. Indeed, more than 45 percent of Insider Intelligence's fourth annual Mobile Banking Competitive Edge Study respondents rank mobile as a top three criterion in determining their financial institution of choice.
Future of mobile banking
Mobile banking has evolved into the preferred method for customers to make deposits, account transfers, and track their spending and earnings—and has become a critical differentiator for banking executives.
Since the outbreak of the coronavirus pandemic, mobile capabilities have become a more critical element in respondents' bank selection than they were last year. Financial institutions should determine which mobile banking features consumers value the most and how they stack up against competitors to focus their efforts on the areas that require the most attention.
Consumers' primary concern when it comes to mobile banking is security. The threat of data breaches drives demand for secure banking features that enable consumers to set holds on credit or debit cards, schedule travel alerts, and file and review card transaction disputes.
Online banking, which comprises mobile banking, refers to the complete banking experience via digital channels, consisting of mobile apps, desktop computers, and live chatbots.
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