Mobile banking technology is constantly evolving. In today’s mobile-first world, the rapid pace of technology is changing the retail banking future radically, relying less on physical branches and more on mobile facilities. Forecasting the trends in the retail banking landscape today, here are four things that may unfold in 2018.
1. Gen X joins the Mobile Banking Queue:
While Millennials have always been quick to embrace new technology, the technological gap separating Gen X from Millennials is shrinking. It has been reported that 67% of Gen X use the mobile app of their banking institution. This number will keep increasing, eventually matching the Millennials' on mobile banking usage, change the course of retail banking.
2. Defunct Brick-and-Mortar Banks:
With mobile banking on the rise, the need for physical branches is lessening. Thus, there will be a fewer need for brick-and-mortar retail banks as bank branches shall continue to lose importance. Thanks to mobile banking apps, retail banking has now become easier than ever before. To avoid a mass shutdown of physical branches, banks will rush to stay updated with their mobile banking technologies while continuing to focus on developing customer loyalty. Banks relying heavily on physical retail banking may face trouble in the near future. While physical branches shall not completely disappear next year, most physical branches are destined to become obsolete.
3. Greater Personalization and Mobility:
Consumers will demand easily accessible mobility and personalisation in banking services whenever they want it. Consumers will want to build their suites of mobile banking products so that they can personalise their banking experience. Banks must have the technology and know-how to deliver personalisation and mobility in a perfect bundle for customers.
4. Digital Currencies:
Along with mobile banking, banks must compete not only with other banks but with non-traditional financial competitors. Digital-only banks by big tech companies have made their presence felt, and will continue to grow. They shall offer a completely digital mobile banking experience to consumers. Apart from these, virtual currencies such as Bitcoin have already established themselves as a possible alternative to real currency. Demand for such currencies and transactions with them will continue to grow, and this has the potential to alter the traditional retail banking techniques drastically.
Financial institutions will adapt to emerging financial technologies and facilitate their own mobile-based digital and virtual innovations to be able to stay in business competing with these new technologies flooding the market, and they will adapt soon.
1. Gen X joins the Mobile Banking Queue:
While Millennials have always been quick to embrace new technology, the technological gap separating Gen X from Millennials is shrinking. It has been reported that 67% of Gen X use the mobile app of their banking institution. This number will keep increasing, eventually matching the Millennials' on mobile banking usage, change the course of retail banking.
2. Defunct Brick-and-Mortar Banks:
With mobile banking on the rise, the need for physical branches is lessening. Thus, there will be a fewer need for brick-and-mortar retail banks as bank branches shall continue to lose importance. Thanks to mobile banking apps, retail banking has now become easier than ever before. To avoid a mass shutdown of physical branches, banks will rush to stay updated with their mobile banking technologies while continuing to focus on developing customer loyalty. Banks relying heavily on physical retail banking may face trouble in the near future. While physical branches shall not completely disappear next year, most physical branches are destined to become obsolete.
3. Greater Personalization and Mobility:
Consumers will demand easily accessible mobility and personalisation in banking services whenever they want it. Consumers will want to build their suites of mobile banking products so that they can personalise their banking experience. Banks must have the technology and know-how to deliver personalisation and mobility in a perfect bundle for customers.
4. Digital Currencies:
Along with mobile banking, banks must compete not only with other banks but with non-traditional financial competitors. Digital-only banks by big tech companies have made their presence felt, and will continue to grow. They shall offer a completely digital mobile banking experience to consumers. Apart from these, virtual currencies such as Bitcoin have already established themselves as a possible alternative to real currency. Demand for such currencies and transactions with them will continue to grow, and this has the potential to alter the traditional retail banking techniques drastically.
Financial institutions will adapt to emerging financial technologies and facilitate their own mobile-based digital and virtual innovations to be able to stay in business competing with these new technologies flooding the market, and they will adapt soon.
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