How Banks Are Improving Consumer Experience with Mobile Banking

Mobile banking is revolutionizing the financial and services industry by verifying transactions, facilitating payments, improving data management, reporting fraud, providing an extra layer of security with speech recognition and multi factor authentication as well as facilitating online shopping.

The entire world has now accepted the mobile revolution. Consumers want to pay their bills, buy goods, and take care of their day-to-day activities from any place, at any time. This norm of using mobile devices for performing almost everything, right from shopping to banking, necessitates that security and a great user banking experience need to go hand-in-hand.

Banks are now seeing huge abandonment rates in mobile forms as users do not want to fill forms for banking transactions. Therefore, simplifying that process is extremely important. Abandonment rates for online banking applications have gone up to 97.5%, as revealed in Forrester research. This is a staggering statistic that clearly points to a poor user banking experience.  The real question in the minds of financial institutions is how to make user-friendly applications with the least amount of data in order to improve conversions during mobile transactions, while at the same time avoid introducing any risk.

Enhancing Consumer Experience With Mobile Banking

Mobile is great for banking transactions, but what financial institutions need right now is creating a streamlined user experience that eliminates unnecessary typing and scrolling. This can be done by using mobile carrier data.  Researchers have developed a concept where you only have to fill in one field (zip code) and everything else can be pre-filled by carrier data based on your device. Several institutions now offer prequalification for credit cards on their websites. This process can be simplified using carrier data by checking the card services users qualify for. Thus, mobile carrier data can be utilized for finding credit files and returning a decision if the consumer decides to apply. Thus, consumer inputs less and this helps in eliminating any friction, while the issuer still gets a comprehensive view of the applicant.

Experts say that leveraging mobile carrier networks can help in confirming the integrity of the data when someone is registering for an account. Personally identifiable information (PII), account and device information are the most accurate when they come directly from the mobile carrier.

Up until now, banking applications had to rely on traditional and device centric authentication measures such as passwords and providing answers to cryptic questions. But by using the same SIM card based carrier data that mobile operators rely on, banks are now empowered to quickly verify account logins and financial transactions with a previously-unavailable degree of convenience and confidence.

Consumers now want less friction and a streamlined process in mobile banking applications. Financial institutions and e-commerce companies want to reduce abandonment rates and increase conversion rates. Both of these objectives can be fulfilled by using mobile carrier data that acts as an efficient way of populating forms. Moreover, mobile carrier data also facilitates users to activate and deactivate their cards from inside the app. This helps customers in combating online fraud as users can “turn off” their cards, apart from the time when they are actually making transactions. Advancements in the utilization of mobile carrier data are indicative of a dynamic moment in banking. 

This is just the beginning. As the future of mobile banking is evolving, CIOs and banking leaders can leverage and explore the efficiency of deploying collaborative intelligence, such as mobile carrier information and other relevant data, for reinforcing a trusted exchange between consumers and financial entities.