How The Financial Industry Has Adopted Mobile Apps

How The Financial Industry Has Adopted Mobile Apps

Hey folks! The fourth installment of our mobile app adoption across industries is here.For those new to this series, we started with The State Of Mobile App Adoption Across Industries, giving an holistic view of all the industries, followed by focus on retail with The Impact Of Mobile Apps On Retail and then shifting the focus to the healthcare industry with the post, How The Healthcare Sector Is Embracing Mobile App Technology In 2015.

If you stay up with app trends, you might be wondering why we choose an industry that is almost at the bottom of mobile app adoption. Indeed, it is one industry that is hyper sensitive, as it involves money and lots of risk.

  • Yet given all the odds, this industry is gaining traction – financial apps are opened 30% more compared to other categories, as reported by an ADI report.
  • A research report published by Adobe Reasearch, 2014 has some encouraging results, sample this –
    • In the US, about 50% of top 25 financial institutions now offer advanced featured mobile apps in the areas of money transfers and depositing services and so on.
    • More than one third of banking customers of major players use mobile banking on a regular basis

We understand these aren’t reasons enough to put your banking information at risk, so read on.

Adobe research conducted a massive study to understand why there has been such slow app adoption when it comes to money. The results of the survey were interesting –

The mobile phone has been the major driver for consumers (divided into two categories as general consumers and mobile elites) to access personal financial information on mobile websites, with a majority of them remarking that the user-experience was positive and satisfying. Indeed, the mobile savvy consumers reported the highest rate of satisfaction (a resounding 64% satisfaction rate).

But what about the security risks involved by accessing accounts via apps?

A very justified concern, indeed. But the financial institutions are also aware of these concerns and do not take them lightly. Banking institutions have recognized the mobile app adoption penetration rates and are providing their apps with robust security features. These apps also tend to be more user-friendly than transacting via banking web sites.

This is a surprising revelation that a large number of consumers trust and share their all-secretive info. It is a healthy indicator of growth. When compared to other industries, financial services stand at the third position of highest mobile adoption.

The consumers also had a clear cut preference when it comes to opting a mobile website and a mobile app – they prefer mobile apps.

So, what activities do consumers perform?

As mentioned earlier, the findings have been split two groups – general consumers and mobile elites for the year 2014.

Percentage of mobile respondents that engage in financial activities

Percentage of mobile respondents that engage in financial activities

Since it is such a competitive landscape, acquiring customers, retaining and keeping them engaged with specialized services and solutions is imperative. Thus, creating a positive customer experience, simplifying the account opening and managing accounts has been an area where the financial industry is excelling at.

The top activities that were performed on these banking apps were researching, applying and opening of new accounts.

Again, another encouraging behavior is 80% of consumers reported reviewing bank account information or check balances as a frequently performed activity.

One area of concern, however, has been in terms of researching for new financial accounts or insurance policies, as only a mere 19% perform this activity. This could be a factor of concern as it involves creating better experiences, yet, can also seen as an area of potential opportunity.

The mobile savvy are the highest to adopt and perform the mentioned activities, with 88% of them preferring financial apps over mobile sites to carry out banking activities. The app preference stood at 54% as against the mobile site preference, at 46% respectively.

Though almost being at the bottom of the app adoption rates, it is the financial services that can boast of having the strongest band presence amongst other sectors. This only emphasizes the importance of not having a superficial opinion on the sector.

To summarize, it is the right mix of customer friendliness, the unique personalized experience and, most importantly, the promise of security that consumers are looking for. Those that quickly and rightly get these in place are the ones that are to benefit.

So, how about the financial apps those are available in the market?

The results are again encouraging given the number of apps available. There are a large number of consumers that are app-savvy and are already using financial management apps to help manage their finances.

Here is our pick of some of the apps that are doing well in the market:

Expensify

This is one app that helps you in managing your expenses. It allows you to keep track of your expenses, take photo of the receipts that are automatically scanned and input into your records. It can even import information from major providers such as the Bank of America and American Express. More good news is that it available on iOS and android users for free.

Mint

How can we miss an app that has rated as one of the best app by CNET, Digital Trends and Wired. You could look at all your bank account balances in real time, receive alerts, add multiple credit cards, retirement account and also get a monthly view of your expenses in the form of graphs and charts. It is free for iOS and android users.

Budgt

Budgt lets you create your own categories, input expenses and easier to track the spending. It also hosts a currency convertor for travelers. Remember, this is a simple yet powerful tool for managing your daily expenses.

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And there you have it – The banking industry is slowly adopting user-friendly and helpful apps. We expect app develop to only increase in this industry in the coming years.

Looking to create your own financial services app? Contact our financial services app developers and let’s start the conversation!