The future of mobile banking

As Alex Bray, Retail Channels Director at Misys Financial Software, says in a recent article:

“The good news for those involved in mobile banking is that our hard work is paying off.”

This shift towards mobile banking has skyrocketed over the past few years, and it shows no signs of slowing. The most developed mobile banking markets are the Netherlands, the United States and the United Kingdom, with Turkey positioned as the future ‘hotspot’ for mobile banking, as it has the highest share of internet users who use the technology.

Customers are generally more enthusiastic about the convenience of mobile banking: the ING survey, ‘The Rise of Mobile Banking and the Changing Face of Payments in the Digital Age,’ found that 85 percent of the 14,829 respondents felt that mobile banking has improved their money management.

Banks are looking ahead at how they can expand upon their current technology to foster growth and encourage customers to use their services. Here are a few observations and predictions on where the mobile banking industry is headed.

The rise of tech

Banks are going to start changing the way they conduct their hiring processes, placing more emphasis and importance on an applicant’s mobile skills. As they continue to improve upon their apps, they’re going to need skilled developers to make it happen.

Jim Simpson, a tech executive at City Bank Texas, feels that ‘banks will now start chasing more of a digital native employee.’

Digital meets social

According to the ING survey, half of the people in Europe responded that they are using physical cash less than 12 months ago. To keep up with this trend, banks are turning towards the power of Twitter.

Indian bank ICICI Bank has also started using Twitter as a means for customers to make transferred. These examples are showing a strong pull towards blending digital and social to create a convenient customer experience.

Beefed-up security

Unfortunately, advancements in mobile banking technology also mean advancements in cyber-attacks and data breaches. That’s why companies are investing more into fingerprint scanners instead of PINs and passwords.

Norway is already an almost cashless society, and their startup Zwipe, which has just been named the best product for user authentication, identification, credentialing and management at the Security Industry Association’s 2015 New Product Showcase (NPS) ceremony in Las Vegas last month, is set to change the game. They’ve teamed up with MasterCard and have launched the first contactless payment card with an integrated fingerprint sensor.

Ajay Bhalla, President of Enterprise Security Solutions at MasterCard, said:

“Our belief is that we should be able to identify ourselves without having to use passwords or PIN numbers. Biometric authentication can help us achieve this. However, our challenge is to ensure the technology offers robust security, simplicity of use and convenience for the customer. Zwipe’s first trial is a significant milestone and its results are very encouraging.”

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