We updated this article in January 2024 to include some new trends and use cases. We always want to make sure we're providing you with the best information possible, so we've made some changes to keep things fresh and helpful.
No matter where your financial institution operates, customers now expect a personalized, secure, and convenient experience via digital channels.
Once you have a clear and compelling digital banking strategy—and you’ve readied your business model—the real fun begins: exploring banking innovation and how to digitize products and services to create a competitive advantage. Here are some of the most exciting options to consider.
Customers are increasingly reaching for their smartphones to tackle everyday tasks, from ordering groceries and takeout to managing prescriptions and even telemedicine appointments.
This shift towards digital solutions has set the stage for payment innovation, where simplicity, speed, and security are paramount in the customer journey. As you implement your digital banking vision, consider your customer journey and the integrations you can implement to enable easier digital payment for your customers.
As you’re making digital payments accessible, also consider digital wallets, or e-wallets, as part of your omnichannel strategy. These wallets offer customers a seamless way to access their debit and credit cards from virtually anywhere without the traditional physical constraints. The advantages are clear: not only do they minimize the risk of losing a card, but they also significantly reduce the chance of credit card fraud, providing peace of mind in an age of increasing cyber threats
The environmental impact of this shift is also clear. When we reduce the dependency on plastic cards, we're contributing to a greener planet, cutting down on the waste and pollution associated with the production and disposal of traditional payment cards.
This is a prime example of how technology and eco-consciousness can go hand in hand, creating a win-win scenario for both customers and the environment. It's a forward-thinking approach that not only meets the immediate needs of the consumer but also aligns your business with the broader goal of sustainability.
When customers use digital banking to manage their finances, you have a unique opportunity to strengthen your relationship by helping them achieve their financial goals with personalized services. One of the best ways is by leveraging artificial intelligence/machine learning (AI/ML).
Integrating AI/ML gives digital tools the ability to track how much money is coming in and how much is being spent. With those insights, you can help customers make sound financial decisions. For example, you can proactively inform customers what is safe to spend vs. when they should skip spending their money and instead save it.
Beyond that, AI/ML can also help mitigate fraud risk by proactively identifying and alerting users of suspicious activity. Mobiquity has helped large banks successfully integrate this kind of PFM (personal finance management) technology into their existing programs.
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What if you could improve customer experience by allowing the use of voice to launch your app and conduct banking activity? Or interact with a chatbot on your website to reduce their wait time?
This would be especially helpful for customers who want to quickly get support without needing to listen to a phone IVR (Interactive Voice Response) or taking the time (and potential risk) to visit a branch. As just one example, see how Fatema, a Gartner award-winning, in-app smart chat assistant, is helping customers at ila Bank.
In this new age of digital adoption, companies are having to get creative to establish and strengthen customer loyalty. With customers increasingly expecting rewards in exchange for their loyalty, banks have a stake in this game.
Consider how you could reward customers for choosing online banking with you. After all, digital banking is a win for them, with around-the-clock access and convenience. It’s also a win for you, thanks to potentially higher satisfaction and a lower cost to serve.
Imagine a bank that can adapt to market changes with the speed of a fintech startup, deploy new features rapidly, and scale services on demand. This is the power of the cloud. It's not just about storage; it's about creating an elastic environment that bends to the will of customer needs and business goals.
With the cloud, banks are no longer shackled by the limitations of legacy systems; they can innovate with the confidence that their IT infrastructure can keep pace with their ambitions.
Security in the cloud has also taken a front seat, with sophisticated encryption and cutting-edge cybersecurity measures that are constantly updated to thwart the latest threats. Banks can assure their customers that their financial and customer data is more secure in the cloud than in any vault or safe. This peace of mind is invaluable in building trust and loyalty in a digital world where data breaches are all too common.
A shining example of cloud technology's transformative power in banking is the case of NBS Bank in Malawi. In their quest to become the region's fastest-growing, most innovative, and responsive bank, NBS Bank recognized that digital technology, particularly the cloud, was essential.
By collaborating with Mobiquity and Rabo Partnerships, they crafted a digital strategy that was both ambitious and achievable. The result was a cloud-native mobile banking application built upon a modern architecture, ensuring an always-on solution aligned with customers' lifestyles.
Banks can differentiate themselves by providing customers with digital tools focused on financial wellness. These tools can include budgeting calculators, savings goal trackers, and automated savings features that round up purchases to the nearest dollar and save the change.
You can integrate these tools into your banking app so that your customers can gain better control over their financial health, fostering both trust and loyalty. Plus, these tools align with the strategy of using technology not just for the sake of it but to create meaningful experiences that solve real customer pain points.
The seamless digital onboarding process is a prime example of digital innovation in action. Banks have recognized that the initial setup is the customer's first impression of their services.
Incorporating eKYC technology, banks can now offer a more streamlined and secure onboarding experience. By leveraging cloud-native mobile applications with advanced security features like facial and document identification, banks enable customers to complete their identity verification digitally. This eKYC process not only simplifies the onboarding journey but also instills a sense of trust from the outset, as customers appreciate the blend of convenience and stringent security measures.
The use of modern architecture ensures these banking services remain always on, providing customers with uninterrupted access to their banking industry needs. Furthermore, the integration of eKYC within these platforms ensures that customer identity verification is continuous and reliable, aligning with global security standards.
Standard Bank's initiative to reclaim its title as Africa's top bank exemplifies this approach. After partnering with Mobiquity, Standard Bank developed a mobile application that not only improved the onboarding process for its customers through eKYC integration but also maintained optimal service availability around the clock, reinforcing the bank's reputation for reliability and customer-centricity.
The battle against fraud and human error in transactions should always be a top priority for financial institutions. Integrating a high-performance data search engine built on robust cloud services like AWS has proven to be a game-changer. This technology employs sophisticated algorithms to cross-verify names with account numbers in real time, significantly reducing the risk of fraud and misdirected payments.
Banks in The Netherlands and the UK have seen tangible benefits from this innovation, including a noteworthy reduction in reported fraud and errors. This not only protects the customers' assets but also enhances their confidence in the digital banking system.
A collaboration between Mobiquity and a prominent Dutch bank led to the creation of such a solution, which has since been instrumental in safeguarding customers and streamlining the accuracy of banking transactions.
Whether you’re starting from scratch or enhancing an existing program, consider downloading our Digital Banking Features Radar. It provides an overview of global mobile retail banking features from over 80 banking and fintech apps worldwide, giving details on the most commonly used features, the ones that delight customers, and which ones will truly set you apart from the competition.
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