Financial services apps in the future: Don't bank on it

Antoine Hemon-Laurens
Posted by Antoine Hemon-Laurens Product Marketing Thursday, March 1, 2018 - 19:43

Antoine Hemon-Laurens has a strong expertise in Digital Transformation and Customer Engagement solutions. His role at Quadient is to drive product strategy and to conceive innovative solutions helping insurers and banks to better engage with their customers. He focuses on mobile solutions, customer engagement, digital signatures and new technologies such as blockchain and artificial intelligence to help enterprises grow their revenues and reduce their operational costs

Customer Experience Update
Financial services apps in the future: Don't bank on it

You can pretty much guarantee that any bank you hold an account with will have its own mobile app: they’ve become a must-have over the last decade. However, the shape of the industry is changing, which means banking apps are not guaranteed to be here in the future.

Industry analyst Gartner is predicting that 20 per cent of businesses will abandon their mobile apps by 2019, and the upcoming regulatory changes in the financial services market mean that the market is likely to be one of the most-effected by this shift. We’ve heard a lot of talk about the Open Banking and PSD2 regulations recently, and this is one example of a tangible impact the rule changes will have on the industry. 

Put simply, one of the main changes Open Banking and PSD2 will bring about is that banks will be obliged to provide services across whichever platforms their customers want. This means the days of digital banking being carried out solely within the secure walls of banks’ proprietary website are behind us, as customers will be able to dictate to banks which channels work best for them. 

‘I will be attending the Finovate Europe event in London (w/c 6th March) – please reach out if you would like to meet a member of the Quadient team to discuss these issues further.’

So what could this look like in practice? For example, an account holder could contact a bank on Facebook messenger and ask them to display all of the accounts they hold (across different providers) and transfer money between them. They could even go further, managing their accounts by taking out a short-term loan from one bank to pay off an overdraft with another. In short, customers will be able to use whichever digital platform they want for their banking services.

This means that in the future banks are likely to place much less of a focus on their own websites and apps than they have to date. Of course they are not going to shut down apps and websites tomorrow, but we are likely to see banks placing more of a focus in developing customer experience in a different direction in the future. The key to success will be for banks to treat the changes as an opportunity rather than a threat; by providing banking services over social media sites, for example, they can provide a great customer experience by allowing people to make transactions without having to ever visit the official banking site or app. 

image source: TechInAsia