Emerging Trends in Mobile Banking

by Money Hero

In early science fiction movies and novels, the future has always been portrayed as a vastly electronic and wireless world, where financial transactions would be done through some form of network system (with currency usually referred to as “credits”) instead of using actual money. We have seen signs of that in the recent years with the prevalence of credit card use. Thanks to mobile banking, it’s easy to see that the future is now.

Mobile banking has made it possible for everyone to transact, even on a global scale, financially without having to physically go to the bank or even speak to any representative of the bank. It has also opened banking services up to the people on a 24-hour a day basis. Such accessibility has made banking a more convenient process.

Now, there are new trends emerging in the realm of mobile banking that promise to make mobile banking the number option for everyone with banking needs.

Mobile Banking vs. Online Banking

Recent trends suggest that mobile banking would soon beat out online banking in terms of the number of users. With more and more people equipped with mobile gadgets that feature online capability, the number of people who opt for mobile banking is definitely rising as opposed to online users. A testament to this is the existence of mobile banking apps and its growing number of users. Many users opt to check their credit card balance, bank account, and other financial matters through their mobile devices instead of other means. While mobile banking has yet to overtake the reliability of online banking (particularly with apps that have yet to be glitch-free), the general preference of users towards mobile banking could very well establish this method of banking as the norm in the coming years.

Biometrics

With biometric technology slowly being available for general public consumption, it will not take long for the use of biometrics to affect mobile banking. In 2014, several mobile phones have come out with the use of biometrics as a security option to locking and unlocking one’s phone. It would not be a stretch of the imagination to assume that this method can also pave the way for a more secure way of mobile banking. The use of biometrics would definitely lessen any chances of fraud one may encounter with non-traditional banking. The fact that mobile devices are already equipped with such a technology is also a huge reason why mobile banking may be overtaking other forms of banking soon.

Image Recognition

There are technologies being developed (and some already being tested and used) that allow one to make financial transactions by simply taking a picture. Mobile phones are all equipped with cameras capable of taking high quality images, and this is now being developed into another way of making mobile banking a more convenient alternative to other forms of banking. Imagine being able to pay for a bill by simply taking a picture of it; a system “reads” that image then automatically charges your credit card. You have paid your bill in a matter of mere seconds. It is breakthroughs like this that make one truly feel that it is a very different, very efficient world that we live in.

The Possibility of “Digital Banks”

With all the potential leaps in mobile banking—generally positive, all in all—there is also always something that can possibly be a cause for worry. In this case, it is the possible emergence of digital-only banks. With the way that mobile banking is set up, the creation of digital banks, or fully automated “cyberbanks,” is not just a sheer possibility, it would also potentially render traditional financial institutions obsolete. These banks conceivably update faster, are more convenient, and accessible than physical banks, and with the growth of a tech-savvy next generation, these non-banks may be the first option for people with specific banking needs.

Regardless of how you feel about mobile banking, whether it is positive or not, its development has been and continues to be a very interesting thing to follow. The future is indeed now, and apparently, it’s mobile.