With mobile banking in place, see how financial institutions can cut costs tremendously
Post-Covid India looks a lot different from its predecessor. Once a cash-rich, thriving economy, India Inc. is now a technologically-enabled economy fueled by a cash-less ecosystem.
Thanks to government initiatives like UPI, an estimated 70% of Indian online adults with a bank account do their banking on a mobile application or website using their smartphone.
This data from Forrester Research affirms the importance of a sound mobile banking strategy in place that could change banking as we see today.
What’s next in Banking?
Surely, it is a clear window for banks to convert into a digital outlet simply through a strategic mobile banking solution. Unfortunately, however, the timeframe for being a tech-first bank has trickled down exponentially over the last few years.
Aggressive competition coupled with a lack of know-how disables the possibility of a clear foresight. But on the other hand, building the right technological stack for a centralized architecture that governs all the processes of a bank in record time makes it an impossible task in itself.
This is where centralized systems come into the picture. These systems streamline operations and enable a successful mobile banking strategy.
Mobile Banking: The Next Frontier?
Mobile banking is undoubtedly the next-generation banking methodology. However, technologies such as DeFi (Decentralized Finance) pose a greater risk to the way traditional banking has been done.
Here is a list of solutions to why and how mobile banking could beat the competition in its space.
Unlike legacy banking infrastructures/ branches, mobile banking allows banks to serve their customers all the time. One can access funds, take a loan or check balance anytime, all through the comfort of the home.
This unparalleled availability differentiates mobile banking from legacy infrastructures.
However, ultra-modern systems like DeFi provide similar features and, hence, could not be ignored at all costs. But what DeFi fails to assimilate is the comfort of human interaction and the trust of banks, making mobile banking the preferred choice for all.
Help Banks Cut Costs
Traditional banking methods strictly bound customers with paper-based transactions. These traditional solutions elongate different banking processes for the customers and increase the cost overheads of a bank.
However, with mobile baking in place, banks and other similar financial institutions cut costs tremendously and narrow down the time of a particular task with a simple intuitive interface.
Banks, further, can even choose to close down multiple physical branches in the same city or town and consequently downsize their hiring initiatives, saving on multiple expenditures in the process.
Better ROI than Traditional Counterparts
A recent study on mobile banking users revealed that an average banking institution could generate around $2 million as incremental revenues and reduce attrition rate by an average of 15% by simply increasing the mobile banking adoption rates. The study also found that an engaged mobile banking consumer can help in:
Use of a greater number of services
Staying longer with banks
Decrease in cost
Conduct more debit card transactions
These factors mentioned above make mobile banking customers turn into better customers with more transactions. It also helps banks in all aspects and hence having the right mobile banking inclusion strategy in place is a win-win for banks.