By Alexandra Capik
With the rapid advancement of technology in today’s world, mobile applications are serving as more than just a source of entertainment. Mobile apps are taking over the banking sphere, with an expected 2 billion banking transactions to be carried out this year alone, according to research by The British Bankers’ Association.
Technology is on its way to becoming a universal component in the banking world and leading firms are adopting the upward mobile app trend, offering their clients an easy and convenient way to manage personal banking information without the hustle and bustle of stepping foot into a bank or having to log on to a computer. RBS has taken advantage of this mobile phenomenon, having already processed more than 1 billion transactions via its app.
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However, the mobile app movement does have its challenges. Mike Davies, vice president EMEA North, GMC Software Technology said: "Banks understand the need to provide customers with access to their data from their mobile devices. The challenge for banks lies in enabling this access through existing legacy systems. Mainframe systems that were originally designed simply to handle high volume batch processing are now being forced to provide instant access for customers through mobile devices, which presents a difficulty as systems are stretched to provide front, middle and back office processing on an outdated platform."
Twenty-four hour access to accounts has become a standard requirement for the modern day consumer. The rising popularity of apps allows instant access to account information along with the ability to complete transactions at the touch of a button. Consumers are looking for the flexibility and freedom to communicate with their banks as and when they choose. This sort of mobile communication permits immediate accessibility, and consumers of all ages are flocking towards this movement. According to Davies, the appeal of online banking is reaching a vast audience, with 42% of 55-70 year olds using online-only statements compared to 41% of 25-34 year olds.
Davies said: "The next generation of customer engagement is for banks to take full advantage of the capabilities that modern mobile devices bring, such as dynamic bank statements that allow customers to interact with and analyze specific, personalized information from a single pane of glass. This is one step further than simply downloading an online statement and banks must truly engage with the customer rather than attempt to dictate what actions can be done on which platform or channel."
The key to success, said Davies, is for banks to embrace this newfound technological trend. He added: "For banks to truly benefit from modern technology developments, service orientated architecture needs to become device aware. Banks need to enable customer engagement and access to information as and when it is required, from any device and via any channel. Customers are expecting this service; the key for banks is to truly listen to their demands."
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