Current Digital Banking Trends. Do You Still Need a Web-Based App In 2021?

48% of smartphone users regularly use online banking services. The same users' number make purchases in online stores. Other popular online operations include payment for services (such as ordering taxi rides or food delivery) and personal money transfers.

In general, online banking has become an integral part of our life. People of different ages have appreciated its usefulness and convenience. Therefore, it is not surprising that online finance is continually growing and getting updated with new features. In this article, we will look at the most popular digital banking trends and how you can apply them in your app. Also, we will see the differences between online banking and mobile banking and find out if it’s still relevant to develop web banking in the era of mobile apps.

Current Digital Banking Trends

In 2021, banks are operating in conditions of a pandemic and high-tech inventions. To meet the customers’ needs, they need to quickly adapt to industry demands and follow current and future trends in mobile banking. Next, we will review them in more detail.

Growth of online transactions

Besides, during remote times, many have tried stock trading. As a result, many brokerage accounts were opened through banking apps. In addition, the number of mortgage and consumer loans issued online also significantly increased.

Simplified access to banking products

Today, bank-client interaction is a universal communication environment. It allows users to interact with banking services and operations through any online mechanism, from a voice call to instant messengers. Besides, current digital banking trends make banks look towards innovation. That is why many institutions implement AI tools, speech recognition systems, and biometric authorization.

Paperless documentation

This situation shapes future trends in mobile banking, forcing financial institutions to pay more attention to cybersecurity and customer data protection.

AI and ML usage

  • marketing and sales: lead scoring, cross-selling, personal offers, targeting
  • customer service: chatbots, voice bots, checking client documents
  • back-office processes: risk management, intelligent processing of documentation

Data-driven approach

For example, banks can draw up typic user behavior patterns based on the data from online banking, mobile app, ATMs, call centers, etc. This helps them differentiate banking offerings to meet every user’s wants and needs and set up an efficient marketing campaign.

Greater personalization

Future trends in mobile banking intend to make such personalization more advanced and innovative. For example, using ML algorithms, banks can analyze a given customer rather than a persona which acts as a generalized character. This way, banks can offer users exactly what they need, increasing their interest and strengthening brand confidence.

Rise of neobanks

In such conditions, the rise of neobanks, completely digital organizations with no physical branches, is quite reasonable. Due to significant savings in renting premises and associated costs, they can offer more favorable terms to customers than traditional banking institutions.

Vivid design of banking apps

Ecobank app design by Softensy (Source: Behance)

Open banking strengthening

Thus, open banking has pushed the rapid growth of financial startups and the development of financial apps. You may have noticed there are many budgeting apps, investment apps, credit score services, and other solutions on the market now. In turn, banks have received an additional source of income by renting out their APIs. As for the customers, they benefit from the wide range of services and can easily switch between different apps.

Cloud technologies

Do You Still Need Web Banking In the Era of Mobile Apps?

To clear up doubts, let’s turn to the facts. According to Deloitte research, 94% of mobile banking users login to the web app to conduct specific operations. Besides, 38% of respondents prefer the desktop app version to implement P2P money transfer. When it comes to international transfers, most users (56%) opt for web-based platforms rather than mobile banking (38%).

Considering the above, modern banks should equally develop both web and mobile lines of their online presence in the market. Each application would cover the customers’ specific needs, and the lack of any of them may lead to user dissatisfaction and customer churn.

At Softensy, we specialize in fintech development. We work with enterprise-level clients who entrust us with implementing their banking services and other high-tech solutions. If you need expert help for launching a web or mobile project, don’t hesitate to get in touch. Our managers will advise on the best solution no matter at what development stage your project currently is.

This article was originally published at Softensy.

Softensy specializes in fintech development and enterprise-level apps. Our team helps companies automate business processes by developing software solutions.