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Evolution in banking – the use of mobile banking apps

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Innov8asia and Marketbuzzz have conducted a survey of current users of mobile banking apps aimed at helping retail banks target, convert, retain and keep engaged the most digitally receptive customer segments through a more aligned online-banking feature set.

From the study it is clear that mobile banking through apps is going from strength to strength. A total of 69 per cent of mobile-phone users who responded to the survey currently use a mobile banking app to carry out a variety of financial transactions.
In addition, the study shows that the rate of usage is high, with almost half (45 per cent) of these smartphone owners using their mobile banking app at least once a week, while another 36 per cent use it at least once a month.
While there was a wide range of features being used on mobile banking apps, the two main purposes were transactions and finding information, with fund transfers and checking account balances most frequently mentioned in this respect.
Grant Bertoli, chief executive of Marketbuzzz, said: “It’s all about convenience: anytime, anyplace, anywhere and benefits of security, savings and control also recognised. 
“We are in a new era where utilising the mobile phone to access finances, along with other dimensions such as mobile payments, will clearly reshape the entire financial system based on consumers’ demand for convenience, faster and more efficient ways to pay and to manage their finances. 
“Why would you go to a bank and stand in a line when you don’t have to and instead you can access [banking services] very conveniently through your mobile any time, 24 hours a day?”
Khalid Khan, managing partner and co-founder of Innov8asia, added: “While the uptake of usage was clear, most retail banks have fallen into the trap of treating customers as a relatively undifferentiated group of users and, by extension, are delivering a ‘one size fits all’ offer. 
Retail banks must also consider which consumers they want their mobile offerings to appeal to in order to optimise customer retention and acquisition, and improve service adoption.”
The study also found that the largest barrier to further adoption was the concern about security, with 44 per cent being worried about people hacking their accounts.
Looking to the future, education of banking apps, simplification of use and providing access to everyone will be the three cornerstones of greater inclusivity and participation for mobile banking apps. 
Winning over new customers and increasing the frequency of use will no doubt come with better features and functionality – the right privilege and rewards programmes, customisable alerts and notifications, account queries, and instant messenger/chat support.
Marketbuzzz currently utilises the user base of Buzzebees, which has more than 29 million users. It is the biggest database in Southeast Asia. 
The Innov8asia and Marketbuzzz study was conducted last December.

Published : April 19, 2017

By : The Nation