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Financial Mobility Landscape – Growth & Trends

by (January 23, 2015)

Financial Mobility Blog

The popularity of mobile applications can be seen in each and every aspect of the economy. The integration of the mobile apps into the financial sector has streamlined the workflow of the management in various institutions, and has also, helped professionals to optimize their reach to a large customer base. This is supposedly, an ever changing economy and the introduction of mobile apps has given a huge boost to the financial institutions. They are easily able to obtain better results as they are always, coming up with innovative ways to connect with their customers and provide them with efficient and better service. Every bank or financial institution needs to be very responsive and should be driven with the delivery of effective mobility solutions. The financial institutions need to transform themselves in order to survive in a sustainable environment. Enterprise mobility solutions, as a service, is gaining prominence, with each passing day, with regards to the banking and financial sector.

Financial Mobile Applications are Gaining Prominence
Being an important sector for the economy of any country, a lot of people are dependent upon the financial organizations to take care of their operational, management and risk management tasks. The professional team is dedicated to deliver streamlined customer experience via mobile banking solutions. Enterprise Mobility Solutions in the leading banks other financial institutions are actively involved in money transactions through the smart phones. The financial service industry has an ever increasing demand. These institutions are being challenged to boost its Return on Equity. The consumer spending is judicious and it is noticed that the consumers are pretty much inclined towards mobile banking. Apps are created by keeping in mind the Mobile User Experience. These mobile apps are created for some of the popular Merchant Gateways which allows customers to use their Credit Card, while carrying out the transactions in a secure environment, especially through the iOS and Android devices.

Finances Handling Made Simple
Innovative ideas have, successfully, shaped financial institutions. Users can, now, pay bills, see their account balances and get records of the transaction history through the mobile apps. Mobility solutions have made life that easy. Customers can also, transfer money between various accounts and send wire transfers, at their convenience. The payment gateway interface, in the mobile app, is also secured and helps the user to submit the transaction details and send request to payment gateway in web encrypted format. They are also, able to get back the response from payment gateway whether the transaction, thus carried out, is successful or unsuccessful. Some applications also have a ‘Fraud analyzer’ system in which the user can create a set of rules for doing transaction monthly, daily, hourly etc. This system can manage the transactions, according to the rules set by the user.

What’s in Store?
Banking and stock trading from mobile phones have become a part and parcel of the everyday life of nearly 2.2 billion consumers worldwide, as per a study from Insight Research Corp. According to the study, mobile applications in the financial sector together will generate nearly $124 billion for mobile application developers and mobile phone companies providing access to their applications. Mobile banking has moved on. One of the recent trends in mobile banking is called mobile remote deposit capture. This functionality in the enterprise mobility allows the customers to deposit their check, with the help of the mobile phones. All they have to do is to take a picture of both sides of the check, in order to make the deposit. Banks and financial institutions have been successful in providing beneficial services like notifications and status updates but there are more opportunities which lie ahead. Now, they have emerged triumphant in providing complete control of the accounts of the customers from the mobile device and also, enable every transaction that the customer can perform via the internet or at a bank branch in person. Mobile banking is maturing fast and the industry’s focus has turned, majorly, towards mobile payments and mobile-commerce. Mobile payments and Mobile Commerce are estimated to reach $1 trillion and $119 billion, respectively, by 2015.

Facilitating Transactions – The Benefits

Mobility automates the transaction processes and these processes do not require human participation at all. Customers have become quite comfortable in carrying out transactions with regards to the basic financial services, on their mobile devices. The financial organizations have to make sure that their banking or e-commerce transactions can be done on the mobile devices from anywhere in the world. The right mobile solution will enable the financial organization to secure the data and make the business better. Mobile means you don’t need to wait anymore. Using the mobile devices, customers can, actually, save a lot of time and money. They can transfer money into different bank accounts, without going to the bank. They can obtain the information with regards to their accounts and get alerts about new schemes and savings. They also, receive immediate alerts about any transaction done from their bank accounts. In short, the customers remain updated with each and every activity related to their finance, without having to go anywhere.

Some Facts and Figures

According to report published in CMO (by Adobe):

  • More than a third of customers at major U.S. banks are now regularly using mobile banking.
  • About half of the top 25 financial institutions in the U.S. are now offering more advanced mobile app features, including person-to-person transfers and remote deposit services.
  • Mobile financial apps take the top spot for the one consumers open most frequently. New banking and investment apps are more secure and make logging in and use much easier than a Web­ site. Consumers use these apps 30 % more frequently than any other app type.

As per the report, ‘Consumers and Mobile Financial Services 2014’ by The Federal Reserve System, 17 % of all mobile phone owners have made a mobile payment in the past 12 months, up from 15 % in 2012 And, 24 % of smartphone users have used their phone to track purchases and expenses. And according to a report by Frost & Sullivan, a market research firm, 12 million people used mobile banking services in 2009. That number has climbed to 45 million by 2014.

Some of the Popular Financial Apps

Mint – Budget Controller
Mint.com is one of the major personal financial applications. This mobile app, for iOS and Android, offers its users a comprehensive look at their account balances, updated real-time, as long as you’re connected to the Internet. It, automatically, categorizes your transactions, and sends you alerts when you are about to go over your budget. It, also, lets you opt for push notifications about the bills. Mint.com is a pretty popular personal finance app because of its good speed and reliability.

Check – Mobile Payment
Check was formerly known as ‘Pageonce’ and it helps you remain updated on bills, and allows bill payment from your mobile device. The mobile payment features include not just major service providers, but also small businesses and individual proprietors. It’s a simple app that enables you to pay your bills on time and helps you to avoid late fees.

Manilla – Bills Reminder App
Manilla provides automatic reminders and calendar options to ensure that you stay on top of your latest utility bills. Your bank statements, notices, various offers and other valuable records, that you may want to view later, can be accessed at a later date. Also, the app has the facility of several reward programs and loyalty cards for the customers of standard banks and credit card holders.

PayPal – Mobile Payment
The PayPal app gives you the access to the account balance and transaction details and inquiries. PayPal users are allowed to add, withdraw, or transfer funds among people. Customers can utilize the app in stores, restaurants, and other establishments in the local area of your residence that accept PayPal.

Google Wallet – Mobile Payment
Google Wallet has a sleek interface and quite, enticing. The app provides tools for sending money to any person residing in the United States, and has a valid e-mail id. It allows you to, automatically, track your online orders and view the purchase history. If you have ordered the free Google Wallet Card, you can spend your balance like a simple debit card.

Opportunities that Lie Ahead
Mobile handsets are in a good position to become the primary digital channel for providers of banking and financial services in the emerging markets. Mobile continues to become a mainstream channel of banking, thus, marginalizing others. As a consequence, the banks are compelled to re-evaluate their channel strategies and business models. Mobility solutions are not only helping the customers, but they are also helping the banks to invest in new opportunities and find out different ways and methods to connect with the customers. They assist in building healthy relationships with the customers. Employee efficiency increases as they are allowed to work and operate from anywhere. In this changing world, each and every financial organization, whether it is a bank or any other financial institution, need a high-powered financial app, to avoid lagging behind in the emerging market.

What are your thoughts ? Will the demand for mobile financial applications increase further?

By,

Nairita Goswami,
Marketing Research & Communication, RapidValue

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