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Over the past decade, the banking industry has undergone a remarkable transformation, driven by the rapid rise of mobile banking. According to the Mobile Banking Competitive Edge Study, an astounding 89% of survey respondents reported actively using mobile banking services. This trend has set the stage for significant growth in the global mobile banking market, with projections estimating a surge from $692.5 million USD in 2021 to an impressive $1,359.5 million USD by 2028. Such growth is expected to maintain a robust compound annual growth rate (CAGR) of 11.9%.
However, with a highly competitive market where the majority of banks offer mobile banking apps, it has become increasingly vital to differentiate oneself and remain at the forefront by leveraging advanced technology. In this blog post, we will explore cutting-edge technologies that can elevate your banking app and revolutionize the customer experience.
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2. Instant payment gateway & transaction authentication platform
3. Robotic process automation (RPA)
1. Artificial Intelligence
Can we talk about emerging technologies without AI? I highly doubt that. The technology has gained tremendous traction across various industries, and financial services are no exception. It has sparked a transformation in the way banks operate, providing a multitude of notable advantages:
- Personal financial management: Many banks have applied AI to provide tailored financial guidance and help users reach their financial objectives. These intelligent systems monitor income, recurring expenses, and spending patterns to develop an optimized plan and offer valuable financial recommendations.
- Risk Assessment and Credit Scoring: AI algorithms analyze user data, credit history, and financial information to assess risk and determine creditworthiness. This helps automate loan approvals, credit decisions, and risk management processes within mobile banking applications.
- Chatbots and Virtual Assistants: AI-powered chatbots and virtual assistants provide instant customer support and assistance within mobile banking apps. They can handle routine inquiries, provide account information, offer basic financial advice, and guide users through various banking processes, enhancing customer experience and accessibility.
- Fraud Detection and Security: AI-powered systems continuously monitor and analyze user behavior, transaction patterns, and device information to detect suspicious transactions, providing an additional layer of protection to mobile banking applications.
- Autonomous testing: With this testing practice, banks can continuously generate test scenarios and test automation scripts and self-heal them as their code evolves. The testing system empowers teams to accelerate product release and increase cost-effectiveness.
2. Instant payment gateway & transaction authentication platform
Banks across the globe are working to provide instant peer-to-peer (P2P) payment solutions, expanding their reach to a broader customer base. The introduction of mobile wallets, cryptocurrencies, POS systems and blockchain has brought about new and popular payment methods that offer unique transaction experiences. Integrating instant payment capabilities in e-commerce and m-commerce allows banks and credit unions to diversify their offerings and develop innovative customer-centric services.
The growth in online transactions has also given rise to innovative mobile transaction authentication like PayConfirm to strengthen the banking app’s reliability and security. The tool employs a transaction authentication signature generated from four essential components: precise transaction details and timestamp, unique smartphone characteristics (smartphone fingerprint), and a private key securely stored on the client's smartphone. In contrast to conventional transaction confirmation methods like SMS, One-Time Passwords, scratch cards, and MACtokens, PayConfirm offers robust protection against phishing, social engineering, SMS interception, and SIM swap attacks.
3. Robotic process automation (RPA)
These intelligent tools can autonomously perform repetitive and rule-based tasks with exceptional speed. Banks can streamline operations like customer onboarding, loan processing, data validation, account closure and more using bots. RPA solutions can also perform KYC checks, anti-money laundering (AML) screenings and other regulatory processes, ensuring adherence to compliance standards while reducing manual effort and human error.
Through automation, financial institutions can streamline processes, improve operational efficiency and enhance customer experience while enabling employees to concentrate on strategic and complex tasks.
4. Big Data
To truly enhance your mobile banking application, the importance of data analytics cannot be overstated. By carefully analyzing extensive volumes of customer data, ranging from demographic information to transaction history and spending habits, banks can unlock a deeper understanding of their customers' preferences, behaviors, and needs. It is no wonder that an increasing number of banks are turning to advanced product analytics platforms like Mixpanel to propel their product growth initiatives forward.
With advanced analytics features, Mixpanel empowers banks to uncover hidden patterns underlying emerging trends. Furthermore, it provides the flexibility to zoom in on specific customer segments, allowing for a comprehensive investigation of potential friction points within the mobile banking product. Armed with these insights, banks can make data-driven decisions to optimize their mobile banking applications and deliver a seamless customer experience.
By embracing data analytics tools, banks can harness the full potential of their customer data, transforming it into actionable intelligence. This, in turn, drives product innovation, fuels customer engagement, and positions banks at the forefront of the ever-evolving mobile banking landscape.
5. Biometric
As the financial industry emphasizes security, biometric authentication methods such as fingerprint, facial recognition, and voice recognition technologies have become mainstream for ensuring secure access to mobile banking apps. In response to this need, KMS Solutions offers an advanced eKYC (electronic Know Your Customer) solution that combines Optical Character Recognition (OCR), Face Matching, Liveness Detection, and Artificial Intelligence (AI) capabilities. This comprehensive solution empowers businesses to establish a seamless end-to-end digital onboarding experience.
Moreover, KMS Solutions prioritizes regulatory compliance and fraud detection for its clients. By integrating their eKYC solutions with central databases such as the Credit Information Center (CIC), Personal Income Tax, and Social Security, thorough verification checks can be performed, ensuring compliance while enhancing security measures.
With KMS Solutions' eKYC, users can complete their identity verification process online within a matter of minutes, eliminating the necessity of visiting physical branches. Upon successful verification, customers gain immediate access to their accounts, delivering a frictionless and convenient onboarding experience.
Conclusion
In a competitive market where most banks offer mobile banking apps, it has become crucial to differentiate oneself and stay ahead of the curve. This calls for advanced technology solutions such as eKYC, product analytics, RPA, transaction authentication platforms and AI to help you elevate the product and user experience.
To effectively implement these cutting-edge solutions, partnering with a trusted technology provider is a must. KMS Solutions, with its 14+ years of experience in the IT industry and a proven track record of delivering successful digital transformation projects for various financial institutions, stands as an ideal partner. KMS Solutions has the expertise and proficiency to build and integrate these advanced solutions seamlessly into existing mobile banking apps, ensuring enhanced user experiences and gaining a competitive edge in the industry.
If you are interested in learning more about the potential of these advanced solutions and how they can benefit your mobile banking application, consider reaching out to KMS Solutions for a consultation. Together, we can explore how these technologies can be tailored to your specific needs and drive success in the digital era of mobile banking.