When a Customer of any Bank accepts digital wallets, they become a potential customer for the bank to acquire tangible benefits. Banks can find potential customers via tracking social media platforms too.
Most important is digital wallets can help banks and credit unions remain significant to customers. And therefore clash with non-bank leftist – as consumption activity continues to migrate to digital channels.
Monetary institutions are certainly in a strong position to leverage the revenue opportunities presented by digital wallets creating effective mobile wallet apps.
Segmentation structure can be adopted to help retail banks to develop a needs-based approach, and empower greater benefits in tailoring preferred services & products in the mobile space.
Let’s get our facts right first and for all. There are over 33% of customers who make decisions based on user-friendly mobile banking solutions. This means mobile banking has become an essential service today globally.
Majority of the banks today are offering a basic banking application. While others have already leveraged their banking capabilities to enable on-the-go financial transactions.
The key functions of mobile wallets should be Simple, convenient & secure, wherein the most digital banking services fall short of. Only after assuring these factors, consumers will switch to mobile wallets.
The Most sensitive function is security concern; customers are hesitating because of privacy and identity theft concerns& frauds. Also, the functionality of wallets should be easy to use and understand for all the age group of people.
Below are the 6 best reasons how mobile wallets are leveraging banking experience:
1. Mobile Wallet Apps in Future
However, looking at current times, American consumers will have more choices in the coming years. The way they make purchases with their smartphones. Big banks and retailers will compete for market share against tech giants Apple and Google.
According to new estimates from fintech analysis firm Juniper Research,
- By 2020, One third (30%) of in-store purchase will be made with contactless payment cards. Also with Mobile wallets such as Apple Pay, Google Pay, Samsung Pay.
- In-store contactless payments will hit $1 trillion this year and $2 trillion globally by 2020. Representing 15% of total point-of-sale transaction value.
- Combined, these mobile wallets users will reach 450 million by 2020. With Apple Pay leading this surge, accounting for 50% of original equipment manufacturer (OEM) wallet payments, as opposed to a third-party app.
Certainly, the banks are in a dire need of reassessing and aligning their mobile strategies that revolve around customer behaviors and needs. While only a few banks are leveraging the power of mobility to convert engagement and loyalty into the share of wallet.
The need of the hour is to take a holistic view of the potential of mobile banking from the perspective of customer satisfaction and enterprise profitability.
2. Giving Mobile-first banking experience
As banks start off to deliver a comprehensive mobile-first banking experience to customers, it would be worthy to acknowledge a new set of competition that is thriving on being mobile-only.
In this era where the tech-savvy generation wants to accomplish tasks in just a click, even a payment. All the leading banks need to buck up with reinventing the banking experience around mobile devices.
Financial institutions can connect with customers daily: before, during & after each payment, by leveraging mobile-based payment controls. The consumer, who travels, will be able to make payments from any location. Customers will find a substantial point of contact.
3. Leveraging the Sales Strategy
There’s certainly a need for the banks to define a sales strategy. To scales up the potential of mobility to create various opportunities for up-selling or cross-selling. The fact is that the potential of the mobile device to further expand customer relationships isn’t growing the way it should be.
Currently, few mobile apps are optimized for sales and marketing activities. And for allowing customers to apply for new services.
Usage of mobile is growing up and up, banks will need to hyper-personalize offers. Based on the transaction patterns of customers, to ensure a higher rate of mutual productivity and value.
A successful hyper-personalization can be derived from actionable insights absorbed from customers’ transaction and contextual data. Thus, it is important to gain a complete understanding of a customer’s financial needs, context and behavior.
4. Serving Integrated Experience
Consumers have had a number of digital and mobile wallet options over the last decade to change lifelong payment habits. But available options haven’t automatically increased mobile wallet use.
Indeed, most mobile wallets haven’t attained strength until latterly. It boosted when digitalization started taking place in day to day lives, especially in terms of banking transactions.
It is found that, In general, consumers between 25-35 are most likely to be interested or already using P2P and mobile wallets. Today’s generation is totally tech-friendly, and they are now dependent on mobile apps for their many days to day activities.
So, Banks should be working towards creating a personalized, rich and integrated mobile experience. There have been reports stating that new accounts activated through mobile devices accounted for up to 20 percent in 2013. And this is expected to rise five-fold by 2020.
Another Retail Banking 2018 report stated that fully automated account origination topped the list of innovations that banks are pursuing in the online channel.
Moreover, banks should be able to leverage the native capabilities of mobile devices, like the camera for data capture or the unique device ID for authentication, to make the experience seamless.
The entire process must be designed to alleviate the need for any physical intervention at any stage. Right from submitting and tracking the application to funding the account.
5. Mobilizing the workforce
In banking, mobile devices have the power to empower field agents and sales personnel to send across a high level of service and engagement by having the flexibility to access the information and applications in real-time.
Also, it always makes sense to accept BYOD than cope with the risks of unauthorized use of devices on the enterprise network. Therefore, banks should be looking out for ways to unlock the potential of BYOD while taking precautions to keep a distance from mobile-related security risks.
More and more banks are pursuing consumer-focused mobile-first strategies. It totally makes sense to implement a similar approach to empowering employees.
One study observed that organizations that have embraced BYOD were likely to witness greater numbers considering customer acquisitions, sales, and profits, which further lead them to enhance employee satisfaction.
6. The Reward Power
Analysis indicates that the lack of mobile wallet recognition in the past was less about the mobile wallet itself, and more about the absence of customer interest.
It can be encouraged if Customers get some interesting rewards and loyalty programs. It will also give you a competitive advantage, even if it’s only for a short time of period.
The way cardholders can earn extra points on every purchase, the same way the more customers use their mobile wallet instead of plastic, they should be rewarded. When people use mobile wallets, Rewards can be credited instantly on their account. Customers have responded positively to reward policies.
One thing is clear and that is banks will have to define a long-term innovation road map that will accommodate growing future developments in mobile device technologies.
Certainly, the emphasis will have to be on redefining banking around the potential that these new technologies bring in. In spite of simply adapting them to incrementally improve banking as we have known it.
So if are you planning to develop a mobile app? Contact us today without late.