Banking is somewhat taking part of our lives. It is getting more convenient and easy for us to use them with technology these days. The future of banking has been increasing since digital era. It changes the way we do payment into new easy way and faster way.
Discussing about how mobile banking will look like in the future, it won’t be far away from technology too. Technology is playing big role on our daily transaction. Internet of Things as example. The Internet of Things (IoT) is part of this rapid evolution toward the bank of the future, and both consumers and financial institutions need to adapt to these retail and mobile banking trends.
Automated Teller Machine (ATM) has been used by retail services and this is one of IoT devices actually. Since their widespread adoption, ATMs have been one of the top IoT devices that make banks far more efficient by removing the need for long wait times to see a teller at a brick-and-mortar bank.
BI Intelligence, Business Insider Premium Research Services, estimates that there were 2.7 million ATMs installed around the world in 2015, up from 2 million in 2010. With this number, there are more and more features to complete the services. There were 2.7 million ATMs installed around the world in 2015, up from 2 million in 2010.
Banks are investing in IoT to enhance the user experience and reduce costs. Some banks have started using beacons, for example, to send customized offers right to customers’ smartphones as soon as they enter the branch. Smartphone has potential to disrupt the way mobile banking works in the future.
Today, mobile banking apps are not an extra benefit in consumers’ minds. They are a necessary part of the bank-customer relationship, and their absence could convince customers to switch to another financial institution. Banking apps is just the beginning. Apple, Samsung, Android, Walmart, and more all have their own mobile wallets that allow customers to simply wave their smartphones and do payment swiftly.
Based on BI Intelligence’s Digital Disruption of Retail Banking report, which surveyed 1,500 millennials, found that approximately 27% of millennials had used their phone to checkout at a store in the last month.
Peer-to-peer payment apps are also available to cut the payment process and eliminate the need for consumers to visit an ATM to take out cash.
Smartphone has became the basic of future mobile banking. Especially among younger customers who will wield financial influence in the coming decades. Considering BI Intelligence Survey which result is that 71% of millennials say it’s very important to have a banking app, and 60% say it’s very important to have an app to make payments.
With all of the wide spreading of Technology, banking will continue to evolve and creating new things. Those customers and financial institutions that do not stay ahead of these retail and mobile banking trends will be left behind.