The financial industry has undergone a pretty radical transformation in the last decade, with mobile banking becoming a primary interface between banks and their customers. As highlighted by recent research from Branch, the mobile app industry has been seeing significant growth during the past several years and this trend extends to the financial sector.
Did you know?
A national survey conducted by Morning Consult on behalf of the American Bankers Association revealed more than 50% of bank customers primarily used mobile banking apps on their phones or other devices to manage their accounts.
Unlike traditional banking interactions that revolved around physical visits, mobile banking has one huge advantage not many banks truly realise - constant, continuous engagement and contact with their customers. The goal is to create digital ecosystems where customers interact with their banks proactively - checking investment trends, optimising spending habits, or setting financial goals - all from their mobile devices. There are ways to help your customers feel at home – from the first steps within the app to total control of their finances and financial health. Let's go through some of them.
Frictionless Digital Onboarding
As everyone knows, first impression matters, so digital onboarding is the first touchpoint of a customer's mobile banking experience. Research from Deloitte’s Digital Banking Maturity 2024 report highlights that leading banks are optimising their onboarding infrastructure to ensure minimal friction while maintaining compliance, yet challenges remain. Some start on mobile phone but switch to a website, many approve accounts quickly but take 3 to 10 days to issue credentials.
Did you know?
According to PYMNTS, Truist Bank reported a 42% increase in deposits, attributing this surge to their enhanced digital onboarding experiences.
Let’s see some of the banking apps and their approach to onboarding process in action. Each of these apps offers a unique onboarding experience tailored to their target audience with visual clues, built-in identity verification and step-by-step guides.
Revolut
- Speed: Account creation in minutes, immediate access to basic features.
- User-Friendly Interface: Step-by-step guide with clear instructions.
- Virtual Card Availability: Users receive a virtual card instantly upon registration, enabling immediate transactions
Monzo
Monzo identity verification in digital onboarding flow prototypes
- Simplicity: The onboarding process is straightforward, with minimal information required.
- Real-Time Updates: Users receive immediate notifications about their application status.
- In-App Identity Verification: Document uploads and identity checks are conducted within the app.
Starling Bank
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- Comprehensive Features: Wide range of services, including savings goals and integrated accounting for businesses.
- Real-Time Notifications: Users receive instant updates on transactions and account activities.
- In-App Support: Customer service is accessible directly through the app's chat feature.
Accurate Data Visualisation
Now that the account is created and the user is starting to look around and work with their data, simplicity is the key to success. Transaction data visualisation transforms complex financial information into actionable insights that users can interact with. Customers now expect banking apps to not only provide transaction details but also interpret and categorise spending trends in real-time.
It’s also about what the app can do with this data.
- Smart search within banking apps allows users to quickly find specific transactions, filter expenses, and track financial patterns without navigating through multiple menus.
- Predictive analytics notify users about potential overdrafts before they happen.
- Goal-based tracking allows users to visualise progress toward savings or debt repayment.
Because banking app can’t show its full potential without proper accurate data, enrichment becomes an integral part of personalisation and visualisation, serving as a backbone banks can stand on to offer users truly personalised, much more efficient, and far more engaging experiences.
Gamification to Attract and Engage
Gamification has been a strategic tool to boost user engagement and make digital onboarding more fun and engaging, building strong relationships with bank clients in the process. Banks like Revolut have successfully implemented programs such as RevPoints, where users earn points for card transactions that can be redeemed for rewards. This approach encourages spending on partner platforms, rewards card usage and deeper interaction with a banking platform. But how does it really work?
Revolut's RevPoints is a loyalty program designed to reward users for their everyday spending, transforming routine transactions into valuable perks. Users earn points based on their spending habits and subscription plans. For instance, those on the Ultra plan can earn up to 1 point per £1 spent on eligible transactions. Booking accommodations via Revolut Stays or engaging in activities under Revolut Experiences also offers opportunities to earn additional points, accelerating the accumulation process.
Revolut occasionally introduces challenges, such as setting budget goals or achieving a specific number of transactions within a timeframe, which provide bonus points upon completion. Accumulated points can be redeemed for various discounts like Airline Miles with over 30 major airlines, hotel stays and bookings or shopping discounts where points can be applied for instant savings when shopping.
The key to successful gamification is to balance fun with genuine financial benefits, reaching beyond the bank itself while playing fair with users. One notable issue is the expiration policy of RevPoints. According to Revolut's terms, any points are valid for 3 years after they are received. After this time, they permanently expire and can no longer be redeemed. These limitations highlight the importance of users familiarising themselves with the program's terms and conditions, and for banks to maintain a good balance of restrictions and rules to stay relevant long-term.
Open Banking and Super Apps
The average consumer today has multiple bank accounts, investment platforms, and digital wallets. According to recent studies, over half of all consumers use more than one financial institution for their banking needs. Managing finances across these fragmented platforms can be overwhelming, leading to inefficient budgeting, missed payments, and a lack of financial clarity.
Open banking solves this problem by allowing third-party apps to access multiple financial accounts securely through APIs. This integration enables users to view all their bank accounts, credit cards, and investment platforms in one place, creating a holistic financial picture. However, open banking data is often incomplete or ambiguous - transactions labeled with cryptic codes or missing merchant details can lead to confusion. This is where transaction data enrichment becomes essential. By categorising and contextualising raw transaction data, banks and fintechs can provide users with clear, insightful financial overviews, helping them make better decisions.
The next evolution of open banking is its integration into super apps, a concept that has already gained traction in Asia with platforms like Kakao Bank (South Korea) and WeChat Pay (China). These apps consolidate banking, payments, investments, insurance, and even lifestyle services like shopping and travel bookings into a single ecosystem.
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(source: Digital Business Lab, 2020)
How Super Apps Cooperate With Open Banking:
- Account Aggregation: Users can link multiple accounts, providing a unified dashboard of their financial health.
- Embedded Finance: Instant loans, insurance policies, and investment options appear contextually based on user activity.
- AI-Driven Financial Insights: Personalised spending analysis and automated budgeting help users optimise their finances.
- Seamless Payment Integration: Users can make P2P transfers, pay bills, and shop online without leaving the app.
For banks, adopting a super app strategy means staying relevant in an era where consumers expect everything to be interconnected. It also opens up new revenue streams through partnerships, subscription-based financial tools, and premium services.
Data as the Key to the Future
No matter how you spin it, the future of mobile banking revolves around data-driven engagement. Whether it’s frictionless onboarding, hyper-personalised financial insights, gamification-driven engagement, or open banking integrations, success will depend on how effectively banks utilise data to enhance user experiences.
For more details on how enrichment solutions can benefit your bank, explore the Tapix offerings.
