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Why Mobile App is Important for Banking, Financial Services, and Insurance (BFSI) Industry?

Why Mobile App is Important for Banking, Financial Services, and Insurance (BFSI) Industry?
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Mobile applications are so common that almost every industry is building them. No business can deny the importance of mobile applications. Mobile apps are used by all industries such as retail, real estate, healthcare, hospitality, travel, food, entertainment, fashion, banking, financial services, etc. The mobile apps are the need of today’s world. People like it more easy and convenient. Every service sector should strategize the marketing techniques and involve mobile apps in it.

In this article, we are going to discuss the banking and financial sector. A survey conducted in the USA found that one-third of the Americans use mobile for banking transactions. This is a great progress for the banking sector in the USA.

Another survey was conducted about the number of financial/banking app downloads and actual usage. The app developers must understand that only downloads do not mean that the app is used on a regular basis. 80% of the respondents said they had downloaded banking apps. But only 20% of respondents said they actually use the app on a regular basis.

Juniper Research stated that mobile banking users to reach 2 billion by the year 2020. Majority of mobile banking users are millennials.

In 2016, Bank of America cut hundreds of branches to focus on online banking and mobile banking. Source: Forbes.

A survey was conducted by Fiserv which stated that mobile banking customers bring 72% more revenue than branch-only customers.

Not only the USA but also the UK has seen a great pickup of mobile banking and BFSI apps market. There was a hike of 30% in the number of users who leverage mobile banking to manage their savings.

There was an increase of 40% in the number of people who track their credit card usage increased. Lloyds Group added 8 million mobile users in the year 2016. Barclays added 5.7 million mobile users. Royal Bank of Scotland (RBS) added 4.2 million mobile users.

As per a survey was done by Citigroup in the first quarter of the year 2018, banking apps are one of the top three most used apps by Americans. 62% of the respondents were millennials. 91% of app users prefer using apps rather than visiting the physical branch.

Not only banking but financial investment companies are also taking advantages of mobile apps. Users can now invest in mutual funds, shares, bonds, etc. with just one tap through these apps. Share market investors can select and buy stocks as well as sell them through mobile apps. Insurance sector uses employee training apps, sales support apps, etc.

Benefits of BFSI mobile apps

  1. No waiting in lines

Users need not wait in long queues for any bank or insurance related work. Mobile apps allow users to do all sort of transactions very easily in no time. The user just has to mention all the details in the app at the time of signing in. once the details are approved, all money transactions, insurance transactions can be done by just a single click.

  1. Consumer retention

Any consumer prefers service which has no hassle and saves time. All traditional processes of banks, insurance offices, and financial services were time-consuming. Besides, all these transactions needed a lot of physical paperwork. Transfer of papers also takes a lot of time.

For instance, a user wishes to claim amount from car insurance as the car had some accident. The process takes so long that the user first has to pay the amount from his pocket and then gets the claimed money. The level of user convenience has increased a lot and hence consumers retention percentage has also increased.

  1. New consumers

BFSI industry can use mobile apps to attract their prospects. In general terms, a business has a purpose of attracting clients through mobile app development. As mobile app offers great facilities, it can be used as a marketing tool. Right promotion of mobile apps of Banking, Financial Services, can lead to the increased customer base.

  1. Any time availability

The traditional way of transactions, investment, etc. has certain time spans. Users can transact only in given time and on given days. But BFSI apps allow users to transact money any time, access insurance or investment details any time. Users can claim, withdraw, buy shares and insurance at any time.

Features required in BFSI mobile apps

  1. Personal account

Allow users to create a personal account. Without personal account and personal details, transactions are not possible. It is important to authenticate the details first and then create the account.

  1. Keep it simple

It is not necessary that the app will be used by only millennials. The app can be used by anyone. It should have a simple and easy to understand layout. The UI UX team must consider the fact that any ambiguities can lead to big problems in BFSI apps. Hence it is important to keep it simple and easy.

  1. Add languages

Unlike other countries like USA and UK, India has many languages. There are some BFSI consumers who do not understand English. Developers must consider this point and offer other languages.

  1. Notify

This feature is extremely important. As the app deals with financial transactions, it is highly important to take care of the acknowledgment and notifications. After any transactions, the user must get a digital receipt. Many app developers allow banks to email the receipts to the users. Also, the app should display all transaction history with detailed information to track everything.

  1. Security

This feature is the most important one. Since the user feeds all bank details, insurance details, financial transaction details, investment details, etc., it is important to deliver great security to the apps. Developers must use latest encryption-decryption techniques while developing BFSI mobile apps.

  1. Real-time service

The app should be able to complete any transaction in real time. Some BFSI services like the stock market have the huge importance of time. Even a minute can cost a lot to the investor. Hence, real-time actions are a must in BFSI mobile apps.

  1. 24×7 customer support

As mentioned above, the users can use BFSI mobile apps at any time and from anywhere. Hence, there should be a 24×7 support system available for end users.

Conclusion

The future of BFSI mobile apps is bright. The BFSI app market is going to see some great and advanced changes in the coming years.  It is important for all mobile app development companies as well as BFSI companies to understand the importance of mobile apps. Also, mention all the features mentioned above in the apps to make it a great success.

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My name is Hemendra Singh. I am Managing Director and Co-Founder of The NineHertz, a Mobile App Development Company. My ideology is that, a clear vision and hard work builds a great company. I started my career in Information and Technology 10 years back as a new-age Entrepreneur in the emerging digital India.

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