How Is Mobile Banking Boosting Banks’ Revenue?
Cutting edge technology and evolution in the financial services sector have transformed the way banks operate today. It has made banking simple, convenient, and quick for users digitising their operations. Banking activities are available at your fingertips, thanks to innovative technology and user-friendly features.
Mobile Banking is beneficial for both banks and users. The history goes back to the late 90s and early 2000s, when the internet began gaining popularity. Previously, people used SMS Banking as a mode to check their balance and find the nearest ATM. Nowadays, you can customise apps for smartphones on Android and IOS that have revolutionised the services.
How does it work?
This feature operates over multiple platforms. But SMS is the primary use of technology where customers can send a predefined text code to a number specified by the bank. The bank replies after receiving the request. It works across the mobile device, model, and network carrier to enable users without smartphones or internet connectivity. The other ways it helps are:
Boosting bank revenue
Mobile Banking apps have unlocked revenue-generating opportunities for banks. It enables them to reduce overall costs and increase their customer base. You can access innovative features like personal payments, remote cheque deposits, real-time notifications, etc. They enhance the mobile money experience conveniently.
With Digital Banking, banks no longer restrict themselves to geographical constraints. They can increase their network by up-selling and cross-selling products to existing customers. It leads to improved banking relationships and broader coverage.
Monetising customer analytics
Banks are in a unique position when it comes to customer analytics. Unlike supermarkets that only monitor their spending habits, banks build and offer data analytics to retailers looking for customer intelligence. Retailers and merchants use this to target their customers efficiently by providing personalised offerings. Banks leverage this data to acquire new customers, offer better service, and improve decision-making capabilities.
Banks also establish relationships with retailers and manufacturers, offer discounts and purchasing incentives. It helps them provide a rich customer experience while increasing the retention ratio.
Efficient marketing channel
Banks inform customers about new offerings like insurance packages, Savings Accounts, and cashback directly through Mobile Banking. It is also an efficient marketing channel for users. For instance, they guide you to shopping outlets and display relevant offers. It is a real-time engine that compiles campaigns as per your shopping preferences.
Implementation of Digital Banking saves time. You manage your account directly from the app and decrease physical visits to the branch. Hence, bank employees focus on other priorities. It has also reduced the queues outside banks improving overall workflow and customer experience.
This reduces the operational costs and goes paperless. You receive all the updates on developments and products in the banking sector on your phone or email, saving advertising costs. The rapid evolution of the telecommunication industry has laid the roadmap for banking services to change the experience forever.