There will be over two billion users of mobile banking apps by 2020, according to a recent report by Juniper Research.
What is most interesting is how consumers are welcoming change. According to Millennial Disruption Index, 71% of millennials would rather go to the dentist than visit a bank.
This opens up not only threats to a traditional financial institution but also opportunities in many areas, from mobile banking, payments, and customer loyalty to insurance and asset management.
As a global hospitality leader, Accor personnel are mandated to apply all of their energy into spreading the most powerful promise in the hospitality profession, namely – to make guests: “Feel Welcome”
In an effort to further strengthen the company brand as well as elevate a customer’s experience to a new level while staying as a guest at one of their hotels, Accor needed an App that assisted their staff in creating pleasant and enhanced, lifetime memories.
“Banking has to work when and where you need it. The best advice and the best service in financial services happens in real time and is based on customer behavior, using principles of Big Data, mobility, and gamification.”
The mobile financial services growth is unstoppable. By 2021, one out of every two adults in the world will use a smartphone, tablet, PC or smartwatch to access financial services, according to Juniper Research.
Keeping up, however, brings its own challenges. Regulations and security are probably the main concerns financial institutions must take seriously.
Then there’s the cost of legacy IT, lack of talent and skills. All of this can impact the speed of adoption and responding to change.
Organizations that tackle these challenges well will likely emerge winners in this age of technology disruption.
“The challenge for banks isn’t becoming “digital”—it’s providing value that is perceived to be in line with the cost—or better yet, providing value that consumers are comfortable paying for.”
Mobile banking is taking off. Apart from convenience, it presents an opportunity for fast-acting institutions to reach new customers, improve their loyalty rates, and dramatically improve sales through specialized in-app offers.
Major retail brands report that over 30% of their customers made a payment with their mobile device. Companies like Apple, Google, and Samsung are now challenging banks in this space.
From smartwatch banking to using behavioral biometric and positional sensors, shipping and manufacturing control sensors, financial institutions can improve underwriting and reach new markets.
Mobile applications now can provide new products, such as short-term insurance, in a matter of a few taps. Combined with big data, this can dramatically speed up and improve the underwriting process.
Mobile technology combined with AI can deliver highly customized investment advice and let retail investors manage their portfolio from their smartphones. This streamlines the entire process and makes the service more convenient.