Today, there are more than three billion smartphone users across the world – and our mobile phones are more powerful than ever. They allow us to communicate with others, snap photos, take videos, manage our personal finances, book travel, purchase products and much more. The virtual world is available in just seconds on smartphones – and it’s fair to say it has transformed the way the finance industry operates.
With the rise of innovative and intelligent banking apps, we are now able to manage much of our personal finances on our smartphones. We can monitor our mortgage, pay bills, transfer money and apply for new financial products online. Technology has shifted the way the banking industry operates and has paved the way to a much more digitally focused future.
So, what benefits do the finance industry get from advanced mobile technology?
Speed of Transactions
One of the key advantages that mobile services offer the finance sector is speed. There are a variety of different mobile payment types available today, from near-field communication payments (NFC) such as Apple Pay and Samsung Pay, to mobile wallets and wireless application protocol payments (WAP).
The various mobile payment solutions allow consumers to make transactions in a mere matter of seconds, making it quicker than ever to spend and transfer money.
Online payment services such as PayPal are renowned for making secure online purchases faster than ever, by removing the need to enter payment details and passwords every time you buy. PayPal remembers your details so you can get through the online checkout speedier than ever before – and offers other benefits including increased protection.
Great User Experience
Of course, mobile banking apps provide a streamlined and efficient way for people to manage their money. Firstly, they allow customers to access their personal accounts 24/7, meaning they can check their mortgage, see their insurance products and so on at a time to suit them.
This is highly convenient for many who are unable to physically go to the bank during the typical opening hours. It also means customers can check their finances from anywhere in the world – whether they’re travelling for work, sat on the sofa at home or abroad on holiday.
Not only do mobile apps offer personal finance consumers a great user experience, but professionals too. Apps such as MetaTrader 4 have been expertly designed for traders – allowing them to manage positions in a fast and efficient manner on their mobile. This means they can trade on-the-go so long as they have their smartphone to hand.
An article from Business Insider states that 39% of retail banking executives say that reducing costs is where technology offers the greatest impact to the industry. While the initial set up of digital services will require a significant investment from finance companies, it will offer a number of long-term cost saving benefits.
By enhancing their digital offering, companies can reduce their overhead costs, such as employee and operational expenditure. For instance, businesses that provide a chat bot on their website can continue to offer great customer service while reducing the number of service staff required at a given period.
Smartphone technology offers a number of benefits to the finance industry. It will be interesting to see how further advancements over the coming years may affect the way financial services operate.