Mobile banking apps have historically offered limited services compared to their desktop counterparts. Although basic functionality like account monitoring was available, more complex transactions or service management options were often missing. In addition, these early versions had complicated navigation, slow loading times, and unresponsive designs.
Today these apps give users a complete snapshot of their finances including, making payments, tracking spending, and even watching investments grow. Mobile banking apps also secure international payments and help users manage their funds more efficiently with round-the-clock support. Other apps like Mint, and YNAB offer budgetary features, from automating savings to managing budgets like a pro.
Let's explore some of the big changes happening in the banking world, including smart dashboards, instant alerts, blockchain, and smarter investing.
With instant alerts, you're always up to speed on your account activities, bill due dates, and any suspicious activity.
Imagine this: You're out shopping, and as you make a purchase, your phone buzzes. It's an instant alert from your banking app, confirming the transaction. At the same time, it informs you that you've reached 75% of your monthly clothing budget. This instant feedback helps you stay in control of your spending.
Some apps take alerts to the next level by suggesting actions. For instance, if you're about to exceed your budget in a particular category, an app can alert you and propose ways to cut back. Or, if a bill is due soon, the app can remind you to pay it, or even automate the payment to avoid late fees. These alerts work well with smart dashboarding.
Newer apps feature dashboards that give users a holistic view of their finances. They show your money distribution across savings, checking, and investment accounts. Users can track their monthly income, see where every dollar is spent, and categorize their expenses.
Smart dashboards also let users dive deeper into their metrics on investment apps. These apps display users’ investment portfolios and show the current value and performance over time. Users feel like they have a 24/7 financial advisor and these apps provide insights into how market changes might affect their assets. A lot of these dashboards are getting even better with AI and Machine Learning.
Artificial Intelligence (AI) and Machine Learning make banking more personal and smart. Cleo is a real-world example of an AI-powered chatbot serving as a financial assistant. It differs from traditional banking apps by engaging users in conversation. Cleo provides budgeting assistance, tracks expenditures, and gives personalized financial advice.
With these apps chatbots constantly learn from each interaction and improve their ability to understand and respond to customer needs over time. They can also handle routine banking tasks, freeing up human employees to focus on more complex, value-added services.
Based on a customer's transaction history and interaction patterns, banks can offer tailored financial advice, product recommendations, and even proactive alerts.
These models are especially adept at predicting risks, whether it's identifying potentially defaulting loans or spotting irregular transaction patterns indicative of fraud. They analyze millions of transactions in real time, flagging anything that seems out of the ordinary.
Security in these apps is going even further by making use of biometrics to protect access and prevent fraud.
Biometrics offers a significant security upgrade over traditional passwords or PINs, which can be forgotten, stolen, or hacked. Your biometric data is unique to you and extremely difficult to replicate.
Banks like HSBC and Wells Fargo are incorporating biometric authentication to add an extra layer of security. In this case, even if someone gets hold of your phone or knows your password, they won't be able to access your banking app.
Apart from enhancing security, biometrics also streamline the user experience. Remembering and typing in passwords or PINs can be clunky, especially on mobile devices. Biometrics simplifies this by allowing you to access your accounts with a touch or a glance. This ease of access, combined with the high level of security, makes biometrics an ideal solution for mobile banking.
Nowadays, banking is about more than basic transactions. Many financial apps now allow you to invest directly, much like Pebble below.
Apps like Pebble are changing the personalized investment game. Pebble’s trading platform allows users to invest based on their personal values and beliefs. This functionality grants them the freedom to include or exclude any company to ensure their investments truly align with their convictions.
Then there is Robinhood. Robinhood is known for commission-free trades and a simple, intuitive interface. The app offers trading in stocks, options, and cryptocurrencies. Another alternative is Acorns, which promotes micro-investing by rounding up purchases to the nearest dollar and investing in the spare change. This process is also known as robo-investing.
These technologies are transforming banking and personal finance apps into e user-friendly, secure, and helpful experiences. These tech trends make managing money a more integral, stress-free part of our lives.
Whether it's through smarter apps, safer transactions, or personalized services, the future of banking looks bright and exciting.
Want to learn more about mobile apps? We discuss the best practices for developing your own mobile app in this blog post.
