Today’s financial landscape is very different to that of yesteryear. Countless new business practices, regulations, and compliance procedures have emerged, while technological innovation has rapidly changed business models and operational processes.
Adding the development of remote solutions and growing numbers of businesses are realising the necessity of, not just being online but providing a first-class digital experience.
But how do banks ensure customers feel their information is safe with a lack of human interaction? Here, we will explore how institutions can build trust in mobile banking.
Rise of mobile banking
The shift to digital was taking place well before COVID-19, but the pandemic, as well as advances in AI and alternative data, have helped accelerate the adoption and use of digital technology.
Consequently, businesses have had no choice but to innovate – and quickly – or risk losing market share and reputation to their more digitally nimble competitors and mobile banking is no different. A recent Aite Group survey found that 86% of senior millennials, 83% of young millennials, 72% of Gen Xers, 38% of baby boomers, and 17% of seniors now gain access to their banking accounts using their mobile phone at least once a week. Even mobile corporate banking transactions are increasing in volume. Citi reported a tenfold increase in users of its corporate mobile banking app, CitiDirect BE, in March 2020 when compared to the same month a year earlier.
Financial institutions are capitalising on a willingness to incorporate technology into banking and onboarding by creating convenient, intuitive and personalised mobile apps. In our podcast episode with Dimitris Litsikakis, Global Head of FinTech at deVere Group, we discussed the wider implementation of ‘super-app’ wallets, which will house customers’ entire financial footprint.
Digital devices can be used to perform biometric and liveness checks, improving the accuracy of verification. But businesses who do consider customer experience when using mobile and ask users to manually key in numerous and complicated fields which require extensive amounts of information, are likely to suffer from dropouts.
1 in 3 adults under the age of 37 in the UK, say their primary banking relationship is with one of a host of mobile-first challenger banks now available and according to finder, almost a quarter (23%) of all British adults have opened an account with a digital-only bank. They also found that two-thirds of banking customers say they plan to convert fully to a digital bank in the future.
We recently explored the future of high-street banks and ran a poll to further explore the attitudes towards digital banking solutions. While there were no respondents who stated they do not trust mobile-led digital banks, asking how likely they would be to ditch their traditional bank accounts completely, half of all respondents stated that they would not consider doing so.
Building trust in mobile banking
When online activity increases, so too does the risk of online fraud and fraudsters are continually developing more sophisticated ways to attack businesses and customers.
Industry experts reported a 37% increase in mobile phishing attacks globally in Q1 2020 compared to the previous quarter and a 173% increase in mobile banking Trojans for the same period. In this shifting landscape, organisations need to keep on top of their anti-fraud measures ensuring they’re up to the job of protecting their customers and deal with breaches accordingly.
Ultimately, the best way financial institutions can build trust in their mobile banking processes is by building a safe, secure application with an excellent user experience.
Trust should be at the core of any financial institution’s digital strategy; a bank needs to trust that the person sending a transaction request is a legitimate customer and a customer needs to be sure that the digital aspect of their bank is secure. Financial institutions can build trust in mobile banking by creating safe, secure applications incorporating multi-factor authentication while considering customer experience for ease of use and functionality.
The initial interactions a new customer has with a business set the tone for the entire relationship; the likelihood of a customer sticking with a business (and recommending them to others) increases with the level of emphasis they put on creating an excellent customer experience.
Continual communication between customer and provider in a systematic way throughout the life cycle will also instil trust and improve user experience, building emotional, lasting relationships which translate to higher customer lifetime value.
How we can help
Here at Hello Soda, we utilise digital data gathered from a range of sources such as digital footprint verification, document authentication, facial recognition matching, liveness verification, live utility data address verification, and CRA identity checks. Working together, these sources can act as a catalyst for creating digital identities and improving financial inclusion. The added benefits for an organisation when using these data sources is that they provide additional insights into a consumer’s behaviour, likes, dislikes and background.
Traditional checks, such as using credit history mean that many good customers are turned away. A vast number of younger people do not have CRA data so if this source is used, they are rejected. Equally, in countries with thin files, where traditional data does not exist or is scarce, our product offering can be used to qualify and verify new customers.
We have a comprehensive family of KYC and AML solutions all working together and delivered via a single API integration. Using this wide range of data, we provide a unique, real-time ID scoring system that intelligently verifies the identity and can be sure your customers are who they say they are. Our global ID, KYC & AML platform, Sodium, is designed to help save you time and money, streamline your customer journey, automate your onboarding process, reduce fraud and achieve regulatory compliance. One simple integration; a flexible 360° solution that is scalable and secure.
Utilise a single element or multiple processes – it’s entirely up to you. Learn more about how we can help to automate and simplify your verification processes to help you to learn more about your customers.
Book a demo today and see for yourself how powerful our suite of solutions are.