Now more than ever, people want to be able to accomplish simple everyday tasks right from the palm of their hand. In fact, it is estimated that there are some 3 billion smartphone users on the planet as we speak. Because of this, it is important for banking to become a more technologically savvy sector, utilizing mobile technologies and apps. People feel pressed for time. No longer are they willing to wait in long lines at the bank teller window or sit in a drive-thru. Banking apps can appeal to an already busy society, dependent on their smartphones. If you’re on the fence about developing or investing in a mobile app, here are 5 significant reasons why you should.
Mobile Apps Lower Banking Expenses
One key reason to invest in mobile banking application development is that mobile transactions can increase a bank’s overall efficiency while decreasing expenses. Here’s how:
Mobile apps help banks to go paperless, cutting costs and helping the environment.
Money is saved on printing and delivery of statements.
Eliminates the need for hiring additional workers.
Mobile app transactions are ten times cheaper than ATM transactions.
Operational costs at physical branches decrease.
Research suggests that the cost of mobile transactions in the coming years will be 50 times lower than traditional branch transactions and 10 times lower than ATM transactions. This offers a unique opportunity to lower overall operating costs for a physical branch.
A Serious Return On Investment
When you choose to invest in the development of a mobile banking app, you quickly receive a substantial return on investment. A recent study by Fiserv showed that mobile banking serves to positively impact customer engagement, aiding in return on investment. By increasing the number of mobile banking users, the average bank can generate millions in additional revenue while reducing attrition rates by 15 percent.
Mobile Banking App Users Engage In More Services
Having trouble shelling new services? A mobile banking app can certainly help. Statistics show that compared to branch-only customers, mobile banking customers are far more likely to engage in additional services/products from their financial institution. This is due to the fact that mobile banking customers psychologically feel more connected and engaged with their institutions. Additionally, research suggests that mobile banking users are more loyal and tend to stay with institutions longer.
Improved Customer Experience
As mentioned above, mobile banking app customers are more loyal to their institutions. That’s because they tend to have more positive customer experiences. Mobile banking apps can improve the customer experience in a few key ways, including:
24/7 round-the-clock availability (customers can access their accounts whenever they want)
Instant fulfillment of customer needs
A personalized customer experience.
Full control over customer finances (account alerts, check deposits, money transfers, and credit monitoring).
Gather Customer Analytics
When a customer strolls into a physical location, you can’t discern much about who they are or any other actionable metrics. With a mobile app, you’re able to collect and analyze those metrics. That allows you to utilize data to improve your services and tailor your customer experience. Metrics can also help you to understand how users interact with your app and why. Generally, with a great mobile app development team, you can divide metrics into groups like consumer satisfaction, performance, and acquisition.