Dependence of the BFSI- banking, financial services industry on mobile apps is shrinking and most banks have decided to close down one-third or half of their branches as customer footfall has fallen due to the emergence of mobile and wireless banking. Most banks were preparing for this by promoting branch-less banking aggressively and bring them on board through online banking so that they can eventually cut down their retail footprint that is a very high-cost proposition.
Open banking recommended
Regulatory authorities all over the globe now mandate financial institutions to offer digital apps to users with a unique personal identification number or m-pin with which they can see the status of all their banking transactions across all accounts. This app can also serve as a comparison tool to compare financial products and choose the best ones. In spite of the inherent security risks that might permeate such cross-platform apps, efforts are being made to have a full-proof application in place which identifies users with a virtual address and does not require them to give their account details for sending or receiving money.
Engaging digital consumers
Companies have made forays into new kind of payment apps like PayPal, Snap cash, Apple pay, vemo and logins into mobile applications had risen from 7 million in 2014 to 11 million in 2016 in united kingdom alone. These apps can fetch data from core banking channels, authenticate users with 2-factor authentication and secure backward integration with banking records.
Save huge on operational costs
By employing mobile, the internet and wireless technologies, banks have been able to save more than $2.5 billion in cheque processing costs excluding the savings in time and energy. Seeing the gargantuan savings, mobile application development platforms or MADP’S are being developed that can ensure critical back-end integration with core banking channels and develop a centralized security management infrastructure. This cyber security apparatus will manage developer access and application protocol interfaces so that re-use of existing components can result in new products. In the changing milieu, open source technologies are being leveraged aggressively to develop cost-efficient solutions that can create the right ecosystem for digital banking to grow.
Meeting manpower demand for developing a sound technology infrastructure
Banks have solved the problem of resource crunch in terms of technological manpower by leveraging a collaborative approach and continuously updating its apps. By leveraging the full potential of open source architecture, development costs can be kept in check and continuous improvements can be made in the architecture of mobile apps.
HNIs moving to mobile
High net worth individuals (HNI) who are hard pressed for time now use mobile and apps more than ever before.so in order to retain their most lucrative customers, banks need to move aggressively towards a mobile application universe.
Moving towards e-KYC systems or electronic know your customer can greatly increase the velocity of customer acquisition as regulations require the wet signature of customers before any relationship with customers is established. Other routine tasks like GPS stamping, pre-filling of forms for cash or cheque deposit, barcode and QR code scanning. No wonder ATM and branch transactions have fallen to mere 5% of the total transactions being performed in the UK.
Latest posts by Ashfaq Ahmad (see all)
- Top 3 Powerful Platforms to Build a ChatBot - April 2, 2018
- Is ZoConvert the Best Messenger Bot Builder for Online Marketers? - March 21, 2018
- AppSumo Review: Do They Offer the Best Digital Digital Deals? - January 24, 2018