What Is The Role Of Artificial Intelligence In Mobile Banking Apps Development?
What Is The Role Of Artificial Intelligence In Mobile Banking Apps Development?
The banking and finance industry is always open to adopting new mobile technologies. The mobile banking applications will cut down the visits to physical banks by approximately 30%.
Further, the banking and finance apps assist users in getting banking services immediately with more security. Users can send or receive money, can check loan offers, track transaction history, and view account details and statements all at their convenience. It has increased the usage of mobile banking apps globally.
Changing customer preferences in using banking services due to the current COVID-19 pandemic is encouraging banking app development in recent years. Moreover, the usage of trending mobile technologies in mobile banking application development is a buzz across the world.
Artificial Intelligence (AI) is playing a vital role in mobile banking apps development. The role of artificial intelligence in mobile banking apps development is to make applications more intelligent and collaborative.
AI in mobile banking sector is not a new topic but has narrowed to limited usage for maintaining the confidentiality of bank customers. But, to enable quick and personalized interactions with customers virtually, the use of Artificial Intelligence in banking apps development is rushing forward since 2016.
In this article, we would like to give you a piece of information on artificial intelligence’s significance in mobile banking and how AI banking apps benefits customers and service providers.
What is Artificial Intelligence (AI)?
Artificial Intelligence or AI is a modern technology that empowers machines, devices, or applications to perform human-like tasks. The AI machines or AI-based mobile applications can interpret user commands in a fraction of a second and respond to the user with the most accurate information.
Driven by the capabilities of other leading-edge AI technologies, including Machine Learning (ML), Natural Language Processing (NLP), Deep Learning, and Computer Vision, the craze for AI in banking apps development is at its peak level.
It is estimated that by 2030, 70% of global companies will use artificial intelligence in their operations in various forms such as interactive AI, text AI, functional AI, analytic AI, and visual AI.
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Artificial Intelligence in Today’s Mobile Banking Apps
Even though Artificial Intelligence in banking is at the initial stages, we can observe its fast growth in the sector. Most of the banking and financial service providers are new to AI technologies.
On the other side, nearly 32% of bankers and financial service providers are using AI technologies such as predictive analytics and voice recognition in their systems and applications to analyze customer search patterns, know preferences, and improve their satisfaction.
Instead of developing new mobile banking applications, 50% of banks are adding AI functionalities to their mobile apps. For instance, the Royal Bank of Canada has integrated a brilliant AI-based Siri functionality into its existing iOS mobile banking app. It believes that adding AI features to apps will offer hassle-free online banking services and virtual responses 24*7 to its esteemed customers.
Integration of Siri-like speech recognition virtual assistant in banking apps will also reads and saves loan reminders, bill due dates, and track transaction data. The unique voice recognition commands can simplify user tasks with security.
Hence, global banks are also exploring AI technology in banking application development to improve their customer experience and stay competitive in this digital market.
What Does Artificial Intelligence in Mobile Banking Offer?
Artificial intelligence applications in banking streamlines operations and help brands augment their service quality. Yes, with the introduction of artificial intelligence in the banking sector, banks are finding better ways to provide services online to customers.
Here, we have listed out a few benefits of using AI in android banking apps and iOS banking apps development.
Top benefits of AI in mobile banking apps
#1. Customer Support
Virtually assisting customers is one of the top use cases of AI in banking apps development. The future of AI in mobile banking sector has a scope in this era.
Reliable customer support services are the best way to increase brand visibility in the market. It always plays a vital role in brand awareness and achieving customer loyalty. Integration of AI-chatbots in banking mobile applications assists businesses to stay in touch with customers when they need your service.
Hence, using AI technology in the banking sector, banking and financial service providers improve digital customer relationships.
Developers can implement conversational AI technology in chatbots. The chatbot application quickly interprets the user queries and starts a conversation with them like sales executives. The best thing about conversational AI chatbots is that they can learn new words from conversations.
Conversational bots for banking can guide clients about standard banking operations and also advertise new banking products or services. It will reduce the need to visit the bank for clarifying their queries and hence saves time for banks and customers.
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#2. Virtual Personal Assistants
It is one of the best use cases of AI in banking apps development. AI’s voice recognition technology is one of the core AI technologies used for developing the most advanced and intelligent mobile banking applications. The demand and popularity for voice recognition technology in mobile applications are increasing at a rapid pace.
To deliver personal assistance services virtually, enterprises are developing apps with speech recognition and natural language processing capabilities. Banking applications with such intelligent capabilities understand user needs and deliver online services accordingly.
#3. Digital Personal Advisers
RPA (Robotic Process Automation) based digital advisers are one of trending use cases of AI in banking apps development. Banking agents offer clients personalized financial advice and personal loan offers based on their credit score and transactional history. Now, it’s the right time to offer all these conventional services through AI robots.
The AI technology robot advisors analyze the customer banking data and provide profitable insights without any human assistance. Such an automated process ensures data accuracy and security.
A top financial company, Moven, is enabling users to link information debit cards with a mobile app. This process helps users to track spending at any time. This application also sends personalized suggestions and advice to maintain their money. This type of innovative idea will push the boundaries of banking apps usage rate and enhance the overall customer satisfaction and experience.
#4. Secure Automated Transactions
Secure online transactions are the main reason for the high acceptance and downloads of banking apps. With AI usage in banking apps development, customers can experience a seamless banking experience. Along with the traditional way of instant transactions, artificial intelligence features allow the user to schedule payment dates for automatic transactions.
For instance, if you select the auto-debit option to pay your credit bill in your application, with the power of built-in AI abilities, mobile apps will automate the process and automatically debit the amount from your account on a scheduled date. So, you will never miss due dates and pay hefty cheque bounce charges for loans or any EMI payments.
#5. In-notifications, Alerts, and Reminders
Automatically sending alerts and reminders to customers is one of the top benefits of AI in mobile banking apps. Integration of AI in banking mobile apps helps banks to send push notifications about attractive interest rates on loans and fixed deposits and other credit-related offers.
Adding AI into banking apps also benefits the users to set up reminders and get alerts on bill payments, low account balances, and fraud transactions. It will help the customers to keep track of their accounts.
Since auto bill payment reminders and service alerts will increase the app opening rates, the demand for this use case and the future of AI in mobile banking sector would be promising.
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#6. High-Level End-to-End Security
Artificial intelligence-powered banking and financial apps for android and iOS provide high-level security for every transaction the user does. The built-in AI can track and block suspicious transactions. The artificial intelligence applications in banking also block access to unauthorized channels and immediately inform customers and banks regarding fraudulent activities.
These are a few top benefits of AI in mobile banking apps development. The use of artificial intelligence in banking is a futuristic decision that allows banks and finance companies to deliver fully digital services over an encrypted virtual environment. Hence, artificial intelligence applications in banking will be the best revenue-generating assets for bankers in the current and upcoming future.
Top 10 Statistics Of AI Mobile Banking Usage Market
Since businesses across the globe got affected adversely due to COVID-19, banking and finance apps become more explosive to do cash-less or zero-contact transactions. Unlike other sectors, banking applications have witnessed skyward trends in terms of usage and downloads in 2019 and 2020.
The convenience of completing bank transactions online at the convenience of home comfort is attracting more customers to download and use apps.
Here are the top 10 reasons behind the increased usage of mobile banking apps.
- As of Statista, 90% of mobile banking app users download apps to check their account balances and recent transactions.
- Over 60% of users are installing banking applications for cashless payments.
- Approximately 73% of positive emotional feedback, Android banking apps are leading against iOS banking apps.
- The user rate of android and iOS banking apps is expected to grow by 15% year over year.
- 35% of both the public and private banking sector is planning to invest in AI chatbots to ensure a tailored banking user experience.
- Over 50% of banking and finance apps were attacked with malware in 2019
- 79% of smartphone users have used their finance apps for online purchases in the past six months.
- The value of online payments made through mobile apps reached $503 billion in 2020.
- Bank of America remains on top with 30 million mobile active users.
- As of Statista, the revenue from mobile banking will be anticipated to reach $639 billion in 2021.
Challenges of AI Adoption for Mobile Banking Apps Development
Adopting new technology and implementing them is a complex process and of course, it is a challenging task. Embracing AI in your mobile strategy and getting positive business outcomes are tough tasks. According to a financial study, here we compiled a few challenges in adopting AI for mobile banking apps development.
- 50% of banks are facing issues with their legacy systems
- 44% of banks have no centralized visibility
- 38% of banks have zero expert talents to tackle customers issues online
But, with technological advancements in mobile banking, the banking sector is coming forward to embrace AI technology. The banking and financial apps alter the way banks used to deliver services to their customers.
If you plan to create a banking application for your customers, you must identify areas where AI can be implemented to improve the overall user experience.
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The Future Of AI In Mobile Banking
In the early stages of AI development, the use of artificial intelligence in banking is restricted to transactional analytics, risk management, and fraud detection. But with rapid development in technologies, AI usage has expanded to all possible aspects of banking operations.
Innovative AI mobile banking solutions make banking and financial functions smooth and secure. Besides, best-in-class AI mobile apps also help financial institutions understand their customers’ behavior and deliver better experiences free of cost.
However, without embracing technological advancements within the AI landscape, brands and startups cannot succeed in this connected world. The future of artificial intelligence in mobile banking will streamline entire banking and finance operations and ensure RoI.
Get in touch to know the pros and cons of developing AI banking mobile applications for your business.
Conclusion
Till yet we have discussed about the role of artificial intelligence in mobile banking apps development / artificial intelligence in the banking industry, benefits of the technology implementation, and also about future of artificial intelligence in mobile banking.
Artificial intelligence has the potential to rephrase conventional banking processes and deliver a high level of user satisfaction. So, every banking service needs to implement AI in mobile applications to remain in the competition.
Hyena is a leading mobile app development company. We have adequate resources and experience in building flawless banking mobile apps for Android and iOS.
