According to a 2023 survey from the American Bankers Association , 48 % of bank customers use apps on phones or other mobile devices as their top choice for managing their bank accounts , while 23 % use online banking via laptop or PC . The next most popular banking methods include visiting a branch ( 9 %) or ATM ( 8 %) and phone banking ( 5 %).

In addition to the obvious convenience of mobile banking , customers are attracted to the everincreasing features and benefits on offer . At the same time , customer expectations around mobile banking are increasing . Commonly cited frustrations include the need to download too many updates , being interrupted by irrelevant pop-ups , and elements of an app ’ s functionality being broken or just clunky .

However , customers aren ’ t necessarily leaving their banks because of dissatisfaction with mobile apps . A 2021 Bankrate survey , for example , found that the quality of mobile or online tools accounted for only 6 % of customer loyalty . Mobile banking is a big deal for customers , but it ’ s not yet a deal breaker , so it can be difficult for banks to discern a direct ROI for improvements to mobile applications .

Nevertheless , smart banks are investing in nextgeneration mobile banking , leveraging emerging technologies such as advanced analytics , data visualisation , digital payments , security detection and AI .

Advanced analytics can be used to personalise mobile banking products and services to better meet the customer ’ s needs – no more of those irrelevant popups ! – while identifying opportunities to cross-sell and upsell to the customer . Applying advanced analytics techniques to available data can also offer customers smarter versions of in-app financial tools ( such as

Introducing this month ’ s Editor ’ s Question is Chris McGee , Managing Director of the Financial Services Consulting Practice at AArete .

Chris McGee , Managing Director of the Financial Services Consulting Practice at AArete

loan calculators ) and deeper insights into personal purchasing trends . Those insights are not only useful for the customer ; they can enable the bank to suggest on-target purchasing solutions , both from the bank itself and third-party partners ( utility providers , grocery stores , airlines etc .).

Developments in data visualisation are helping to improve the layout , functionality and navigation of mobile apps , making the apps easier , faster and more intuitive for the user . As customers leverage mobile more and more , the trend to complement banking with digital payment options becomes greater and greater . Digital wallets and tap-to-pay options are only the beginning of what will become a new spectrum of options for customers to leverage when making purchases for goods and services .

Banks are using AI to evolve mobile banking in several areas , including security detection . AI can detect fraud and other potential risks faster than ever before , while helping banks to comply with a growing number of regulations . AI will increasingly play a key role in protecting customers ’ assets and personal data and , crucially , in earning customers ’ trust .

The need for cybersecurity will remain a major trend in mobile – and general – banking . Cyberattacks disproportionately impact the financial services industry , which is second only to the healthcare industry in terms of cost per breach , according to IBM ’ s Cost of a Data Breach Report 2023 .

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