Technology continues to develop over time, which has led to changes in trends across every industry. The banking and finance industry is among these ever-changing industries, particularly with an increased emphasis on mobile banking and finance. People no longer need to wait for banks to open before depositing checks or performing other tasks. The industry has undergone even more changes with the spread and receding of the COVID-19 pandemic.
Today, nearly every mobile user has installed at least one banking or finance app on their mobile device to perform various actions every day. While the majority of these users are members of younger generations due to their trust in the security of their data, more and more people of every generation are installing and using these apps. At this point, banking and finance apps are multi-generational and universally used.
To give you a better sense of what the market holds for bank or finance apps, the following are some compelling statistics to consider in this industry. Based on these numbers, you can better gauge how to go forward with your mobile marketing strategy.
1. The Mobile App Market Is Likely to Generate Up to $437.80 Billion in 2022
The mobile app market continues to grow, and while the predicted revenue for mobile apps this year isn't quite as high as last year, it's still projected to make hundreds of billions of dollars by the end of 2022. With the growing use of and reliance on mobile devices, we continue to move into the digital era. As a result, people are willing to spend more and more on mobile apps as they continue to depend on them for nearly every daily task, including managing their finances.
In addition to the increased use of apps, technology continues to advance with more apps than ever using the internet of things (IoT) and artificial intelligence (AI) technologies. With the development of banking and financing apps, this specific industry has also successfully transitioned into the digital age.
According to Statista, the total revenue in the mobile app market will likely reach $437.80 billion this year. In addition, in-app purchase (IAP) revenue is predicted to climb to $202.90 billion. The total revenue is expected to see an annual growth rate of 6.58%, meaning the market will likely grow to $565 billion by 2026.
During the pandemic, many people preferred to spend more time on mobile banking applications and sites to conduct transactions remotely. While the effects of the pandemic have begun to decrease in their intensity, with changing mask mandates and other regulations as the number of vaccinated individuals climbs, the pandemic brought with it some permanent changes. A larger number of mobile app users have seen the value of using mobile solutions to achieve myriad goals and complete many daily tasks, making them more inclined to continue this trend in a post-pandemic environment.
2. Six Out of Every 10 Mobile Users Prefer Finance Apps Over Websites
As technology evolves and many aspects of app-based banking change, more people than ever rely on finance and banking apps in their daily lives. Fewer users are worried about the security of their data when entering information about their banking and finances into their mobile devices. Despite the ever-present threats of identity theft, data leaks, and other potentially malicious activities, many apps have taken steps to improve their security and privacy policies in an effort to combat them. As such, users don't need to worry about the integrity of their data as much as they used to in the early days of mobile banking and finance.
Because of the increased trust in these mobile applications, Google found that six out of every 10 mobile users prefer to use them over mobile websites and other platforms to manage their accounts. One of the main reasons for this increasing trend is that mobile applications offer 24-hour access seven days a week to users. As such, users don't need to connect with their bank directly to make or receive any payments.
Thanks to the development and integration of financial apps, users can easily perform nearly any task from the comfort of their homes, from making purchases on eCommerce platforms to booking reservations or tickets. Additionally, these apps have become increasingly easy to use for people of all ages, maximizing accessibility. Users don't need to be tech-savvy to get the most from mobile banking applications, as they only need to install their banking or financing apps, sign up, and start using them.
3. Approximately 90% of Users Use Mobile Banking Apps to View Their Account Balance
What many might find surprising is that people don't primarily use mobile banking apps to pay bills or transfer funds, as these actions come later. Instead, one of the key reasons people use these apps is simply to check their account balance. People want to know how much they have and often want to ensure they're in possession of sufficient funds on a daily basis. According to recent reports, 90% of people use mobile banking applications to check their account balance, while 79% use mobile banking apps to view recent transactions.
One reason for this frequency is that it's arguably the simplest task to perform in mobile banking apps. All people need to do is load the app and view their checking or savings balances right on the dashboard. Another reason pertains to security—users still occasionally worry about the security of their data and finances, leading them to frequently check their balances to watch for any suspicious transactions or account changes.
4. 97% of Millennials and 89% of Consumers Rely on Mobile Banking Apps
Mobile banking applications continue to evolve with the passage of time and continuing technological advancement. As a result, various banks and financial institutions have gradually begun to opt for mobile engagement for financial services. These firms understand the importance of mobile banking and how it improves people's lives. One recent Insider Intelligence study found that the percentage of online banking users continues to grow, proving that more people trust mobile banking apps than in previous years.
According to the study, around 97% of millennials use mobile banking applications today, with 89% of all consumers stating that they use mobile banking apps for various purposes regarding financial management. This shows that while younger generations tend to use mobile banking apps more frequently than older generations, the majority of consumers still rely on mobile banking. A growing number of users of various ages, occupations, genders, and other demographics will use these apps as the technology develops and their convenience makes them worthwhile.
5. Mobile Businesses Can Grow Their Revenue by 15% Through Banking App Personalization
As an app owner in the banking and financial industry, you should always emphasize users' privacy, security, and ease of both access and use. Because of this, you must use personalization in your user experience to connect with audiences in this industry. Mobile banking apps benefit greatly from personalized experiences that tailor each session to each user based on their needs and preferences.
One McKinsey & Company report found that mobile sales engagement for finance apps and general services can see a significant increase through the integration of personalized experiences within an app. The more people engage with banking apps, the more they'll be likely to invest and lead to revenue growth for app owners. Specifically, personalization can help increase revenue growth by up to 15%, according to the report.
There are multiple ways you can personalize the user experience in your banking app. For example, you can build a unique experience for each user based on the user's individual behaviors, demands, and requirements. In addition, you can offer personalized discounts and other offers to users based on their demographics. You may also want to create personalized in-app messages and push notifications that users receive. You can also include various FIs to help solve certain issues and provide more guidance for clients, further strengthening your finance app's relationship with users.
Ultimately, users of banking and finance apps expect a personalized experience to give them what they want and need. If your app is heavily personalized and tailored to each user, your users will feel as though you truly value them. They'll also be able to more easily navigate your app, without the need to sift through solutions and offers that aren't compatible. By offering more relevant functions and features, you'll deliver a more satisfying mobile banking app user experience that keeps users consistently happy.
6. Adopting Omnichannel Strategies Enables Banking Firms to Retain 89% of Clients
One of the best ways to get the most from your finance or banking application is to develop an omnichannel marketing strategy, which will generate more engagement, particularly for wealth management apps. Currently, there are tens of thousands of app developers out there behind various banking and finance apps. However, only a handful of apps are those that people regularly use and engage with as satisfied users.
An omnichannel strategy can give your app plenty of success if you make your mobile banking or finance app the central hub of your strategy with various channels linking to it. With this approach, your users won't feel as though they can only use your app to perform various online banking actions. Generally, people view multiple screens before completing any type of transaction, making it important to gain users' trust and commitment within that period.
The best strategy will entail integrating all social media, applications, and web channels to provide users with a seamless and highly convenient banking experience. If users can easily and quickly switch from mobile to a website and social media channels, they'll be more likely to regularly engage with them. You should also ensure that all of your brandings are consistent across all channels, including visuals and messaging, which will help create a unique brand identity and improve the cohesion of your strategy.
To give you a better idea of the value of omnichannel strategies for finance and banking apps, consider a recent study from Invespcro. This particular report found that firms relying on omnichannel strategies have the chance to retain up to 89% of clients. Compare this to the retention seen with companies that didn't use omnichannel strategies, as the report found that they retain a mere 33% of their customers.
7. Financial Institutions With a Net Promoter Score (NPS) of 60 or Higher Get Better Results
The effects of the pandemic impacted every industry differently, with the finance and banking industry among the many to feel it. On the other hand, despite the negative effects experienced during the pandemic, banks and other types of financial institutions took steps to prevent this impact from affecting their users. As a result, the Net Promoter Score (NPS) in the retail banking industry increased by 60 points in 2021, according to last year's J.D. Power Retail Banking Satisfaction survey.
Although the average NPS has decreased in the retail banking industry since then, financial institutions can work to increase their NPS by creating the optimal user experience. Financial institutions with an NPS of 60 or higher tend to get better results than those with a lower score, making this the ideal benchmark to set for your mobile banking or finance app. A solid NPS score shows that a firm is helping users and reveals how satisfied users are with these types of applications in general.
It's also worth noting that the 2021 J.D. Power survey discovered that the retail banking sector made certain improvements that led to a 48% reduction in client complaints and issues. If clients wanted to send queries, mobile banking and finance apps helped resolve them almost instantaneously. Because of this, J.D. Power found that the finance and banking industry saw an 86% retention rate over the course of the year. This shows the value of providing exceptional customer service and working to resolve issues through mobile finance and banking applications.
8. 69% of Users Consider Firms Trustworthy if Firms Are Transparent About Data Usage
Today's mobile users take their data very seriously, which is understandable due to the history of malicious attacks and data leaks involving even some of the most reputable companies. People want to know for certain whether their data will be consistently secure upon entering it into any system, particularly when finances are involved. This makes it necessary for finance and banking apps to assure users that their data will remain safe and secure at all times. Because of the need to trust any type of financial institution before committing to their services, one report found that 69% of customers believe that both transparency around the use of data and general honesty are key to gaining their trust.
If you make your mobile banking use cases entirely clear to users, and they're aware of the ways you're securing, processing, and using their data, they'll be more inclined to trust you. The same report mentioned above also found that nearly 42% of users believe that banking and finance apps must offer plenty of information regarding their data policies and practices. This details how data security is a major concern for users of all mobile applications, which is why you need to clearly define and display your data policies and establish a transparent brand that users can trust.
As you can see, based on this particular statistic, customer trust is a must when promoting your app and acquiring new users. If you don't do what you can to win users over with in-depth and transparent details regarding their data, they'll be far less likely to turn to your brand.
9. The Top Three Drivers of Customer Loyalty Are 24/7 Availability, Friendly Staff, and Fast Service
Building customer retention and loyalty is difficult for every industry, but it's especially challenging for mobile banking and finance due to the stakes involved. In the financial sector, app developers must focus on three core areas to drive customer acquisition and loyalty: full-time service, reliable and friendly staff, and quick but effective service. If a user in this industry selects your app instead of the potentially thousands of other banking apps out there, this indicates real trust in your features, service, and overall experience.
Above all, users seek friendly staff, with 55% of respondents in one survey making this their number-one desire. This means that you need to have reliable and amiable customer service reps operating online chat and other contact methods in your finance or banking app. Ensure that your team is consistently friendly and helpful and works to learn the individual needs of each user.
The second most important aspect that users look for is full-time access to your services, which should be available 24 hours a day, seven days a week, according to 53% of the survey's respondents. One of the major benefits of online banking and financing is the convenience of accessibility, as customers no longer need to wait for the bank to be open to complete transactions or perform other actions. In turn, they expect to be able to access a financial institution's services at any time and from any location.
The third leading driver, according to the survey, is fast service. Specifically, 47% of respondents stated that this was the most important aspect of a business. This shows that users will be more likely to turn to your app if you provide them with efficient and consistently dependable services.
In addition to these stats, the same survey concluded that nearly 82% of consumers still believe that the expectations they have for the user experience help them determine which brands to trust.
10. The Post-COVID World Saw a 94% Interaction Rate
Although the pandemic negatively affected many industries and brands, it ultimately turned out to be. blessing in disguise for businesses in the financial sector. Just about every other industry felt some degree of negative impact, but the pandemic didn't significantly hinder the growth of the finance and banking industry.
Throughout the pandemic, the three core sub-industries in this sector—including the insurance, Fintech, and banking sectors—continued to regularly engage with users. In the process, all iOS, Android, and other mobile banking apps maintained around 15% to 20% monthly interactions, with a monthly response rate of 80% to 94% across the three main sub-industries.
As the world continues to overcome the many challenges that the pandemic brought with it, the financial industry and mobile banking and financing applications will only continue to flourish. Because of this, the engagement and loyalty these apps see are likely to continue to grow, particularly as more and more people make the transition to digital banking. This makes the future of mobile banking and finance appear very bright.
Take the Right Steps to Drive Great Results With Your Mobile Finance or Banking App
As these statistics show, mobile banking has a solid future ahead as more people rely on mobile banking and financing over more traditional methods. While younger generations are still the core users of these types of apps, mobile financing and banking are growing in popularity among all users. If you want to give your application the chance to excel among the competition, you must provide users with the ideal experience in every way. By incorporating accessibility, user-friendliness, exceptional customer service, personalization, and a generally great experience, you'll have the chance to thrive in the financial and banking industry.
If you're looking for a great way to connect with users through personalized experiences, consider using Storyly's App and Web Stories. These consist of uniquely branded and personalized visuals and messaging that can build relationships with users and website visitors in multiple ways. For example, you can use stories to send personalized offers and promotions in your banking or finance app. Additionally, you can use them to help onboard new users and show them the many features available to them. If you would like to learn more about the value that Storyly can bring to your finance or banking application, get in touch with us today.
