In a recent study conducted, it was established that banks which do not adapt to the digital change the world is going through, could face bankruptcy in the coming years as their motivated competitors who are quickly adapting to the digital changes will attract more customers. Therefore, banks that want to succeed will need to invest in digital technologies to improve their customer service, including upgrading their banking system to the digital forum by introducing online banking or banking apps for smartphones. If traditional banks can bring about these changes, they could make the entire process of banking digital, quicker, more efficient and also much more productive.
To be capable to bank from your mobile phone you need a smartphone such as any Android phone, an iPhone or a Blackberry. The reason for this is because these phones allow you to get or download ‘apps’ on your phone. An ‘App’ is short term used for ‘application’ which is a computer program or software that you can download on your smartphone. There are many apps used for different purposes, for example you gave apps for games and like that, you also have apps for banks. These banking apps allow a person to access their current account, see their balance and complete simple and small transactions and transfers just by sitting at home or wherever they are.
There is no need to go to the bank. Most of these apps are free apps and differ depending on the bank you use, but most of them allow a person to perform the usual activities that are performed at a bank branch. For example, Santander’s Bank app is one of the more recent apps to hit the market and a good majority of people have already downloaded it. This app has a few more features than its competitors, such as the ability to view up to two years of past transactions. Customers can also view and set up alerts, including one for when the balance in the account is low. The best thing about these bank apps is that they are also totally secure.
These apps have had very positive effects for Smartphone users. Along with convenience, banking has become easier and much quicker. So much so that in survey conducted recently, 73% of respondents said that they would choose the bank service provider with the nice app over one with a badly designed app or no app at all. And 42% of respondents said they would even put up with slightly higher fees if they will get the chance to use better app. In another survey conducted, consumers over the age of 35 said that branch location is a vital factor they consider while choosing a bank whereas younger customers said that the bank with a digital system was more appealing to them.
In light of this trend, it’s clear that banks that want to attract the next generation of customers must offer an exceptional digital experience to draw their attention and keep their loyalty. As these younger customers mature, the industry will see a big shift in the banking system patterns for everyday banking.
Photo credit: Simon Blackley