Ultimatum for Retail Banks – Offer Better Services through Mobile App or Lose out to Fintech Competitors

Mobile App is no longer a value-added service but a Necessity!

There was a time when a mobile app was offered only by few top retails banks. But now, when almost every customer owns a smartphone, it is logical to provide a mobile app to reach out to customers instantaneously.

But, is savings bank account the first and foremost offering of a Retail Bank?

The answer is ‘No’. Banks make big time profit from other financial products such as loans.

Are other financial services such as loans offered by Retail Banks only?

The answer again is ‘No’.

This is exactly where the competition gets tough since many of the well-funded Fintech companies are offering financial services. And they are differentiating themselves from traditional retail banks by providing prompt and customer friendly services with the use of technology to enhance customer experience. The best example of this is mobile apps. The top 3 Fintech apps rank higher than all retail banking apps (except top four) in terms of monthly active users (MAU). So, Retail banks should take these competitors seriously or risk losing out.

Mobile Apps at the Centre of Retail Banking Experience

In today’s scenario, most of the users turn to mobile apps for financial interactions. The iOS and Google Play combined Finance app downloads grown 45% in Q3 2016 (year over year). Fintech apps have disrupted traditional banking apps by providing a better experience for stand-alone features. Most of the Fintech companies follow mobile-first approach. They typically focus on the digital consumer.

While reviewing top 10 retail banking apps, users typed ‘easy’ most frequently in 5-star reviews whereas ‘updates’ was most frequently typed in 1-star reviews. This underlines the importance of not just developing mobile apps but consistently updating them to enhance customer experience.

Retail banks need to make the mobile app as their first window for interacting with customers. In future good mobile apps can be the reason for users to leave a bank. According to a 2015 SNL Financial study, over 25% of users who changed banks did so due to a better mobile experience.

Young Users Drive Growth for Financial Apps

mobile-app-retail-banks-stats

In Q3, 2016, those aged 25 – 44 used banking apps the most often, compared to any age group and have experienced the greatest growth in monthly sessions (15%) over the past two years.

Millennials are projected to spend $1.4 trillion collectively by 2020, representing 30% of all retail spend in the US. Therefore they present a key target market for retail banks. According to a study by Jumio, 75% of millennial users are not satisfied with their mobile banking experience.This gap is being capitalized by Fintech apps.

Mobile Apps are likely to delight retail banking customers than online websites. Mobile traffic is eating away the web traffic. It is necessary that banks should prioritize mobile apps in their user acquisition, user retention, customer experience and loyalty strategies. Prolitus Technologies, with more than 200+ experienced developers, can make engaging mobile apps for a financial company, based on latest technology. For more information contact success@prolitus.com or visit https://www.prolitus.com/mobile-app-development.php

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