Mobile is changing the way we bank, from the way we make deposits to the transfer of funds and how purchases are made. Some of today’s youngest consumers may not ever enter the bank again once they open an account; a recent study by FICO points out Millennials predilection for mobile solutions when it comes to money.
Some of the latest mobile options in banking are designed to increase convenience, and banks are increasingly modifying the way they do business to appeal to the tech savvy, smartphone equipped customer.
How Mobile Is Changing the Way We Bank
Online Banking via App: While online banking has been around for quite a while, it is no longer reserved for the more tech savvy bank customer. Easy access to information is a must, and banks are responding to this need by creating more responsive websites that work well on smartphones and tablets; apps are also increasing in popularity, allowing customers to access data with a single touch.
Mobile Pay: Big names like Apple, Google and even Amazon are working hard to squeeze out the traditional bank and offering different ways to pay. Customers even have access to alternative currencies, with Bitcoin now being accepted for real tangible goods and services.
Scanning Technology: A customer receiving a check miles from home has the capability to scan that check with a smartphone and deposit it automatically. For those who work long or odd hours or who travel a lot, the ability to scan a deposit is a must; mobile makes this happen.
Goodbye Tellers: More and more transactions are handled automatically by virtual tellers or over the phone, reducing the need for onsite staff. While the majority of banks maintain a physical presence, many have shifted the focus of their ongoing and planned growth to mobile applications and alternative transactions.
Increased Security Risks: One of the biggest issues is actually the most common security threat in any network — human error. Losing your phone (and using an auto login), using a shared computer or even public Wi-Fi can expose your data and allow others to access your account. While banks used to be solely responsible for the safety of transactions, mobile access makes consumers partners in the process.
Data Breach Possibilities: Recent data breaches by big box stores, restaurants and financial institutions clearly illustrate some of the risks involved in banking in an increasingly mobile and virtual environment. While no company intends to allow a breach, they do happen; when a consumer’s entire banking life is online it may be more accessible to criminals and hackers.
Like it or not, mobile banking is here to stay. The way we use and adapt to technology will not only effect the way our individual accounts work, but the overall banking industry as well.