Why Mobile Banking Beneficial to Banks & Small Businesses

mobile banking

With mobile banking services, organizations could save both resources and time while constantly keeping track of all their expenses cost-effectively and conveniently. Today no longer a company representative would need to visit a physical bank in-person for depositing checks or withdrawing cash for payment of wages because all these operations along with some more complicated banking processes could be done today almost exclusively online.

Entrepreneurs running small businesses are immensely benefitted by using the bank’s mobile or online services for generating value and saving time. They could now devote much more time to growing their business. Today thanks to mobile banking, business owners can make steady progress without wasting any time or money by effectively navigating online banking or financial operations.

As per https://www.forbes.com, the global trend for mobilizing banking seems to be in full swing. We find that major banks along with credit unions and community banks are attracted by the concept of mobile banking and going online. Mobile banking apps are being used constantly and they have today become an integral part and standard of customer service for a vast majority of banking and other financial institutions. However, you need to devote more attention to identifying effective ways of gaining a definite competitive edge with a mobile banking app as this is important for developing a robust mobile banking stratagem. Let us explore how mobile banking is proving to be beneficial to both banks and businesses.

Chief Benefits of Mobile Banking to a Bank

Mobile Banking Reduces A Bank’s Overall Expenses

Mobile transactions are known to boost the overall efficiency and productivity of a bank by:

  • Assisting banks to become paperless and truly environmentally friendly.
  • Helping banks to effectively save money on delivery and printing.
  • Helping banks in eliminating the necessity of employing the services of additional workers.
  • Helping to offer transactions that seem to be 10x more affordable as compared to ATM transactions.
  • Assisting banks in saving dramatically on operational expenses of operating branches of a bank.

As per the findings of research by Deloitte, mobile transaction costs would be becoming 50x lower as compared to branch transactions and even 10x lower as compared to all transactions done through ATMs. This would be instrumental in lowering operational expenses and boosting overall efficiency. In this context, if you are thinking in terms of loans, you could get in touch with trustworthy organizations such as LibertyLending.com.

Drastically Improved Customer Experience

The one thing every business must offer above and beyond anything else is solid customer experience. Banks are no exception to this rule. Here are things you must include in your app to ensure this is maintained.

  • Availability 24×7: The mobile app must be able to connect and perform transactions around the clock, so your customers are not limited by physical bank branch locations or ATMs.
  • Fulfillment: You should offer all your services at the customer’s fingertips. By making them available and accessible, you would be getting cookie points from them.
  • Personalization: In the last few years, businesses have begun to understand the value of delivering customized experiences tailored to each user’s needs. Through advanced data collection and insight-driven decision-making, you can create unique experiences your users will tremendously appreciate.
  • Control: While a mobile app is a simplified interface, users still expect full control of their finances through their banking app. You should allow them to monitor balances, make transfers, set up alerts, and much more.

Maximized Security

Banking is tied directly to every user’s life and livelihood, and security is an issue of paramount importance here. You should look to install authentication measures such as two-factor authentication, gestures, fingerprint or retina scans alongside traditional password logins. All traffic and data on-device must be encrypted with industry-standard algorithms, and customers should have access to a variety of controls in case they lose control of their account or their devices.

A New Future, Driven by Analytics

Mobile apps can collect a good deal of data that can be interpreted to drive decisions. These decisions let you improve upon the UI, UX and general performance of the application like never before, and also provide inroads into the thoughts and habits of your customers. There are three major groups of metrics:

Performance: This involves crash reports, load times, and other bugs that should be ironed out by the next version released.

  • Satisfaction and Engagement: Session timings and intervals, number of active users, retention or abandonment rates are all good metrics for understanding engagement.
  • Acquisition: Number of downloads, demographics of usage, the effectiveness of marketing campaigns are also good indicators of adoption.

Notifications Every Step of the Way

In-app notifications, as well as, push notifications have a variety of benefits for both the customer and the service provider. You can extend several offers and discounts to your customers, while also letting them know about interest rates, credit limit updates or suspicious account activity. Several top banks have seen tremendous success by implementing reliable targeted notification services into their mobile applications.

Chief Benefits of Mobile Banking to Small Businesses

Syncing Seamlessly with Accounting

Accounting could be pretty challenging for business owners. Mobile banking and the cutting-edge online accounting systems are helping tremendously to make things easier for businesses and now they could have all their transactions seamlessly synced with their accounting system without requiring to devote hours to manually adding every transaction. This helps in saving business owners valuable time and money. Now it is easier and certainly less complicated to obtain updated financial reports.

Much Enhanced Security

At some point, small business owners would need to depend on others for managing their books. Mobile banking allows all these small businesses to effectively customize or custom-tailor employee access. As not all employees would be requiring access to all your business-associated accounts, mobile banking would be the most effective way since it has distinctive features for sharing certain content exclusively with a select few employee logins. We understand that an online account could be created on primarily a need-to-know basis. All this would go a long way in boosting the overall financial security of your organization.

Much Improved Organization

Mobile banking proves to be immensely helpful in organizing your finances. You now have your account and all transaction details at your fingertips. You could browse through every single transaction detail in a single place. Thanks to mobile banking, you could be monitoring where precisely your money is going, paying off all your bills promptly, and creating recurring payments.

Enjoy Worldwide Access

You no longer require calling up your bank or waiting for paper statements for checking your balance or examining what has been cleared. You simply need to log in for checking account balances, verifying the payment, or confirming that a check has been cleared from anywhere across the globe.

Get Fraud Alerts

Mobile banking has facilitated seeing all transactions in real-time. Suppose your bank has been observing a history of regular debit card transactions exclusively from one specific location. So when it sees an uncharacteristic purchase that should be triggering a red flag. This sort of security seems unmatched and invaluable.

Conclusion

With the help of mobile banking today, banks and other financial institutions could be boosting customer satisfaction and gaining increased customer loyalty. They are now capable of boosting their revenues, optimizing cross-selling processes, and even reducing average transaction costs thanks to the introduction and implementation of mobile banking. With mobile banking now businesses could manage their money from anywhere anytime from their mobile devices. Mobile banking applications help you in conducting all your financial transactions and operations faster and in a much simpler way. No matter whether you seem to be a global enterprise or a sole proprietorship, it is high time you got your organization’s banking mobilized.

Isabella Rossellinee
Isabella Rossellini is a marketing and communication expert. She also serves as a content developer with many years of experience. She has previously covered an extensive range of topics in her posts, including business and start-ups.