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How Mobile Banking Drives Digital Transformation?

Mobile is becoming the centrepiece of digital transformation among various enterprises. The world of today is digitally driven with technology reshaping various industries especially the financial industry. The humble online banking that started in the 1990s has come a long way and entered a new era of finance. We are at a point, say applying and getting approved for a loan on a smartphone. Digital transformation has become a part of the present and the future. But what exactly is digital transformation and how does the mobile banking system boost digital transformation. This is exactly what we are going to address in this post.

What is digital transformation?

The digital transformation is the conversion of traditional banking and financial services to an online channel. In an online channel, the focus is more on the customer than on sales. Banks have understood doing business in the old way is not sufficient for the current scenario. Digital transformation combines social, mobile, analytics and cloud into one solution and gives a competitive advantage to businesses at new levels.

Mobile apps are the key enablers of digital transformation

Some industry experts often view mobile apps as an independent entity instead of seeing them as an enabler in digital transformation. This creates a difference in the banking sector. Smart innovators use mobile banking services and apps as part of their digital transformation strategy and reinvent the way they work.

Why has mobile become the digital face?

The advent of smartphones has significantly changed the business landscape and financial landscape and has opened the way for new opportunities. Banks and financial institutions cannot do more than leveraging mobile banking solutions to stay tuned with customers. With the mobile-first approach prevailing across the globe and customers depending heavily on mobile devices, including mobile banking app providers as part of streamlining their financial processes is the best option to gain edge in the competition and engage with customers.

With the advent of the latest mobile technology such as 4G and 5G and much more, the banks are finding a way to enhance mobile-based transactions. The main aim of today’s online banking solutions is to be customer-centric. Personalization is what a lot of people love and it takes the digital platform to the next level. Personalization is possible only with mobile apps and mobile-based services. Digital transformation majorly depends on three elements

  • Optimize the infrastructure of a bank
  • The rapid change in approach
  • And keeping the solution ready for digital communications.

The big picture

When it comes to the big picture, banks are adopting a solution that addresses the needs of the customer. Millennial customers want new technology to optimize their journey. They want the banks to fully adopt digital transformation to understand the customer journey. the banks can do this by analyzing the customer’s behaviour in consuming your services. The customers of today don’t want to visit the branch often and more than 80 percent of people admit that their interaction with the bank is transaction-oriented and not relationship-driven. When they love transaction-based relationships, mobile enhances it well and leads the way to a better digital platform for banking. The stats show that more than 51 percent of people use mobile to make transactions, 60 percent of people have at least one mobile payment app and 91 percent of people use mobile to access their account.

Bottom line

As a bank or financial institution, it’s time to consider incorporating mobile-based banking as it is going to leverage your company.

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