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Mobile Applications could Transform the US Financial Services’ Segment Post COVID

Mobile Applications could Transform the US Financial Services’ Segment Post COVID

Mobile applications are key to business growth. The pace and nature of evolution of financial services has completely changed the future of US Financial services and related organizations in the fintech domain. Technology has always been a spark for igniting transformation in the business related to financial services. Post COVID, the sustenance of banking services has been redefined continuously with inclusion of AI, machine learning, meta data management, cyber security and automation for various key operations in this industry. By virtue of its framework, financial services has always been looking for stronger compliance and governance, which by including data science has become even more safer. A significant demand of online financial transactions during the pandemic has improved the utility of mobile applications as well, and the rise of data compliance within the US Financial Services segment is an indication of this massive movement in the Fintech world.

Transformation in Service Delivery: Have the banks encouraged technology investments?

Technology trends in the recent past had transformed the service delivery patterns in banking. Banks have discouraged the number of physical footfalls across the globe, whereas the consumers completed transactions digitally. PriceWaterHouse Coopers (PWC) an international research and consulting services firm acknowledged that, most of the banks across the globe had encouraged technical investments to go online. Such investments have been utilized substantially in deploying Artificial Intelligence (AI) to gain distinct competitive advantage. A major business objective to drive such sustainable initiatives remained to be reduction of manpower costs besides initiating automation of banking services.

How has the mobile applications helped the banking industry, especially in the US?

Data collected by reputed brands like Mckinsey reveal that mobile applications have played a significant role in transforming the banking industry, while considering developed economies like that of the US. During the outbreak of the pandemic, more than about 72% of the financial transactions in US were routed through mobile applications. On the other hand, low cost products have dominated the market of cellular phones enabling wide access to the mobile application. As per a study conducted by PWC, almost 95% of the US population own an android phone and access mobile applications frequently as recorded during 2021.

What has been some of the significant transformations in the banking industry post the outbreak of the COVID-19?

Management consultants’ from reputed brands reveal that service patterns have changed globally post the impact of the COVID-19. USA, a developed economy was therefore no exception. What were the significant trends whatsoever?

  • A significant demand emerged for contactless financial transactions across global economies
  • During April 2020, more than 70% of customers from reputed American banks used mobile banking apps for financial transactions
  • There was a spike in demand for contactless transactions and this was estimated to be of 63% increase during FY 2019 – 20 in comparison to the previous year.
  • Mobile banking was thought to be USD 1.82 billion market globally by 2025.
  • Mobile banking is here to stay and the growth rate is estimated to be 12.2% per annum at the end of FY 2020 – 21

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How can the mobile applications bring in a competitive advantage for customers in the banking segment?

Mobile banking can help you to access

  • real-time information on account details
  • recharging of services
  • shopping portals
  • Implement online payments
  • Implements bill payments
  • Allow check deposits and many more.

Simultaneously, mobile applications can reduce the lead time for operations as regards to a variety of banking transactions.

Growth of Banking Apps in the USA: Background Story

Mobile banking in the US has been a necessary practice. Mobile apps were to enable complete personalization of banking and this was the need of the hour. Mobile applications, on the other hand, provide complete customer assistance while data privacy is the driving force. What do mobile applications offer precisely for the customers in the US?

  • Continuous online access to account details while on the go
  • Instant deposition of financial instruments
  • Instantaneous bill payments to ensure uninterrupted service

What has been some of the most popular mobile applications associated with the reputed banks of US?

Bank of America: Virtual Assistant

Erica, the virtual assistant of bank Of America has served the consumers for a decade now. Helping the consumers to avail online transactions, this application can provide excellent insights on your spending patterns as well. Having a presence in iOS and Androids, some of the typical service features include

  • Online Transfers
  • Mobile bill pay
  • Check deposits
Discover: The Best Mobile Application for banking services   

One of the most popular mobile applications, in the banking industry this has a high customer rating. The mobile application is robust and it works on different platforms to provide a wide range of services. A major advantage with this software is ‘customization’ of your banking services. At the same time the platform is 100% secure to make provisions for data privacy.

Chime: A Modern app to assist consumers

Considered to be user friendly, Chime brings in a wide gamut of handy services. Account management services remains to be a priority while the mobile application offers

  • free ‘internal peer-to-peer transfer service’ to be put into effect immediately
  • Option of ‘Pay Friends’,
Alliant Credit Union: The Best Credit Union application

Alliant Credit Union offers a front runner product in the regard to mobile banking. A major advantage remains to be price friendliness while a wide gamut of services is provided through a secured platform. Alliant’s mobile application is simple to be used, as it provides customer centricity till a large extent. A rich set of features enable access to useful insights on the consumer’s financial transactions carried out in the recent past.

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Conclusion

Mobile applications are used widely in the US to complete financial transactions. User friendliness of a mobile application is a major indicator to gain consumer confidence. However, technology wizards state that the utility of mobile applications in the banking industry vary from one consumer to the other. Availability of the application, utility, price aspect as well as user friendliness determines the popularity of the applications amongst the target audience.

[To share your insights with us, please write to sghosh@martechseries.com]

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