10_Finance_Statistics_for_User_Engagement_

10 Statistics on Banking & Finance App’s User Engagement

Technology has been revolutionizing every passing day, and the trends for the industries have been evolving. Meanwhile, things have changed for the banking and finance industry too. Gone are the days when people waited for banks to open on weekdays to send money. Just like the trends are changing, so are people’s lives, especially since COVID-19 hit us.

Nowadays, almost every user has a banking or finance app on their mobile phone that they use to perform various actions on a daily basis. Unsurprisingly, the usage is more common among younger generations as they know how data is secured through modern app developments. However, when it comes to mobile banking and finance apps, the pool is widening, and people of all ages are beginning to use them for efficient banking and finance solutions.

If you are a bank or finance app owner and are unaware of the use of statistics in banking, you need to read the article below. It consists of ten of the most significant statistics for you to know as a mobile banking app developer. Please go through them and make the best use of the statistics for more user engagement.

1. The Mobile App Market is Likely to Generate Revenue of $693 billion by the End of this Year:

The current era is a digital era that revolves around a handheld device, i.e., a mobile phone. Users have found solutions to their problems in the apps offered by mobile developers on different app stores. From solutions of boredom to solutions to plan the day, everything is available throughout the applications.

Meanwhile, we have observed a boost in smartphone technology with tens of thousands of applications with IoT integrations AI technologies. Thanks to the banking and finance app development that the finance industry has changed for the better. In fact, the industry trends in the banking and finance industry have noticed a boom. Not just this, according to Statistas’ report, the mobile banking statistics show that the market is likely to generate $693 billion by the end of this year.

Due to the pandemic, tech-savvy generations prefer to rely on mobile banking solutions and use mobile banking apps to conduct transactions from the comfort of their home. Surprisingly, the statistics of Finances Online show that around seven thousand seven hundred and twenty-seven banking and finance apps were downloaded every second, making a total of 244.2 billion apps in 2020.

Precisely, it is not just the youth that relies on banking apps. The pool of banking app users is widening gradually as per mobile banking usage statistics 2021.

2. Six Out of Every Ten Mobile Users Prefer Using a Finance App:

Since the technology is evolving and things are changing for app-based banking, people are starting to rely on these applications in their daily lives. Gone are the days when people were scared to put their banking information on their mobile phones. Although cyber thefts exist, the security and privacy policies are transformed to such an extent that people use their banking information to make and conduct transactions without any worries.

Hence, as per Googles’ report, around six out of every ten users choose finance apps on their mobile phones to check their investments. One of the top reasons for apparent mobile banking growth can be its twenty-hours-seven-times-a-day availability to the users. Users do not have to reach out to the bank to make payments or receive them. From payments for shopping to booking tickets, everything can be done from the comfort of homes due to mobile financial applications. Not just this, the applications are way simpler to use for people of any age. There is no need to be super tech-friendly to use mobile banking applications, and all one has to do is install the app, sign-up, and get going!

3. Around 90% of Users Use Banking Mobile Apps to View Their Account Balance:

Surprisingly, paying for bills and transferring funds come later when we look for what banking activity most consumers use mobile banking for? One of the top reasons for using mobile banking apps is to check the account balance. Factually, the frequency of using mobile banking applications to view the account balance is 90 percent, followed by viewing recent transactions at the rate of 79 percent.

Undoubtedly, it is the most straightforward action to perform on the banking app. Moreover, users still worry about the security of mobile financial apps, so they keep checking their account balances over again.

4. 97% of Millennials and 89% of Consumers Use Mobile Banking:

With the passage of time and technological advancement, mobile banking applications are also maturing and advancing. Different financial institutions and banks are opting for mobile engagement for financial services gradually. The importance of mobile banking is enhancing the lives of people. A digital banking statistics report from Business Insider Intelligence’s Mobile Banking Competitive Edge study is proof that the percentage of online banking users is increasing exponentially.

As per the report, around 89 percent of consumers claim that they use mobile banking for different financial purposes. Surprisingly, the online banking statistics show that 97 percent of millennials are using mobile banking. This is to say that the usage is not limited to the youth, although the majority of users belong to the digital natives’ category. Nonetheless, people of different ages, genders, and professions are switching from traditional to online banking.

5. By Personalizing Your Banking App, You Can Grow Your Revenue by 15%:

As part of the banking and finance sector, especially an app owner, your focus should be your users’ security, privacy, and ease. Believe it or not, one of the most effective strategies to increase user engagement for any industry is personalization. So is the case for mobile engagement for banking apps.

A report from McKinsey&Company reveals that mobile sales engagement for financial services can be increased by including personalization in your app. The more the user engagement, the higher the chance for revenue growth, so as a result, your app is likely to observe 15 percent revenue growth.

You can use different ways to personalize the customer experience. For instance, you can craft the experiences as per the app’s users’ needs, demands, and behaviors. Also, you can use the online banking demographics to offer them discounts, offers, and promotions for nearby brands through their banking app. Not just this, you can personalize the push notifications and in-app messages sent to the users. You can even include some FIs to solve the queries and guide your clients thoroughly, leading to a better relationship with your users.

All in all, a personalized experience is what a mobile banking or finance app user expects from you. When your app is more personalized, it makes the users feel like you value them. Furthermore, they do not feel the need to navigate through your app, looking for solutions that are not meant for them. You offer them relevant features and functions, which in turn provide an overwhelming mobile banking app user experience. 

6. Banking Firms Retain 89% of their Clients by Adopting Omnichannel Strategies:

One of the best online and mobile banking trends is adopting the omnichannel strategy to gain more mobile engagement for wealth management apps specifically. There are tens of thousands of app developers who have developed banking and finance apps. Nonetheless, only a few are among the top apps that users regularly engage with and use on a regular basis.

A top reason behind such apps’ success is the integrations of omnichannel strategy in which your online banking app is the hub with different linked channels. In this, your users do not feel like they are restricted to use only the app for mobile banking. Research from Google suggests that users commonly toggle between three to four screens before completing any transaction. The strategy is best to integrate all the channels, including social media, web, and application, to offer a seamless banking experience to the users. The user feels accessible from your app to your banking website and then to social media with a synchronized branding message throughout all channels.

Hence, a study from Invespcro revealed that the firms that relied on the omnichannel strategies could retain 89% of their customers. In contrast, companies that did not use omnichannel solid strategies could only retain 33% of consumers.

7. The Net Promoter Score (NPS) for Retail Banking Increased by 60 Points:

The pandemic has hit every sector differently. The impact was intensely felt by the banking sector too. However, despite the impact, the banks and other financial institutions ensured that their users did not feel the impact in the face of the pandemic. Since COVID-19 hit the world and changed things for the digital sector, new mobile banking industry trends were introduced. The new digital trends showed a boom in mobile banking data. The rise in the Net Promoter Score was proof.

According to the 2021 J.D. Power Retail Banking Satisfaction Survey, the NPS score increased by sixty points within a year. If you are not aware of what the NPS score is, it is a metric that helps measure the users’ experience and calculate the growth of the business. A good NPS score is proof that the banking industry is working for the betterment of users, and the users are overall satisfied with the services of such applications.  

Not just this, the improved sector in the retail banking sector also led to a decrease of 48% in client issues and complaints. Whenever a client had a query, it was resolved immediately through the banking apps. As a result, the retention rate in the finance and banking industry was observed to be 86% in a given period.  

8. 69% of the Users Consider a Firm is Trustworthy through Their Transparency in the Way the Data is Utilized:

Every user takes their data very seriously. Whenever users drop their personal information on an app, they trust the app owners to take care of the data. Moreover, for as private information as banking and finances’, the significance and need for assurance for the use of data are increasing every passing day. Moreover, the breaches and thefts happening these days are reducing the trust of people in banking apps. According to a report, 69% of customers believe that honesty and transparency in the use of data are significant for building trust among them.

Factually, when your mobile banking use cases are crystal clear in front of the users, and your users are aware of how you are using, processing, and securing their data, they begin trusting you. Moreover, data security is an issue that concerns every user. Hence, to retain users on your app, especially when it comes to banking and finance apps, you need to be open and honest about the data policies your banking app follows. Not just this, when asked from the consumers, around 42 percent of the users said that the finance and banking apps need to offer information regarding their data practices and policies clearly.

Overall, the purpose of stating the facts about users’ engagement on banking and finance apps is to make you understand the significance of customer trust in your app, no matter how it looks to your clients.

9. Friendly Staff, 24/7 Access, and Fast Service are Top three drivers of Customer Loyalty:

Be it any industry, retaining and building loyalty among users is not a piece of cake. Considering the financial services sector, the app developers have to focus on three things: the staff, full-time service, and robustness to attract and retain a client. When your user picks your app out of tens of thousands of banking apps, it means he trusts you with your services, features, and experience.

On top, the user looks for your staff to be friendly (55%). You must have customer service representatives on the other side of online chat and calls included in your apps. Make sure that the team is friendly and understands the needs of your users. Next, the user looks for a full-time service twenty-four hours a day and seven days a week (53%). Factually, the significant benefit of shifting traditional banking to online is its flexible timing. Thereby, the users expect you to solve their queries at any time of the day. The third top driver is fast service (47%). Your user is automatically inclined towards your app if you offer efficient, quick, and timely services.

However, around 82% of consumers still believe that their expectations of the level and quality of user experience the bank or financial institution offer them also helps them decide whether they will be a loyal customer.

10. 94% Interaction Rate Was Observed after COVID-19:

It would not be wrong to say that the pandemic proved to be a blessing in disguise for the world’s financial sector. Where every sector felt adverse effects, there were not many noticeable impacts on the banking and finance industry. The three sub-industries in the banking and finance sector, namely banking, insurance, and Fintech, continued to interact with their users. All such apps from android, iOS, and blended remained somewhere between 15% to 20% in terms of monthly interactions. On the other hand, the monthly response rate was observed to be between 80% to 94% in all the three sub-industries.

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