By 2022, mobile transactions will grow by 121% and ultimately account for up to 88% of all banking transactions. Therefore, the creation of a mobile application for the bank is no longer just a pleasant bonus, but a masthead. We’ll tell you what is happening on the FinTech market of banking applications: how it is developing, what methods of attracting an audience are and what functions are most popular.
What is FinTech?
FinTech refers to technologies that apply innovations in the financial sector, most often banking. In addition, fintech can include cryptocurrency, blockchain, smart insurance and cybersecurity.
Using technology allows you to create unique products or solutions that provide new opportunities not only for the client, but also for the business. For example, now online banks have the ability to carry out instant identification and many other operations that previously took a long period of time. Due to this, user activity in mobile banking applications has grown by 354% over the past 5 years and continues to grow. More and more users define financial applications as the main channel for managing their finances, conducting banking operations and for further planning.
Financial Application Market
In 2018, the global digital banking market was estimated at about 6,620 million US dollars, by 2025 it will already be about 8,646 million US dollars. Indeed, mobile banking has become an integral part of everyday life. According to a study by Business Insider Intelligence, 89% already use mobile banking, while among millennials there are even more users – 97%. This is because financial products based on artificial intelligence more and more meet the expectations of users, due to a significant advantage over standard functionality. Personalization, banking planning, the connection of data collection and the ability to analyze them, helps bring FinTech applications to a new level.
The main advantages of banking applications are that the user can:
make any operations many times faster;
use banking services, regardless of location;
better control your financial flows: view the entire transaction history;
instantly apply for loans / installments / receive deposits with the receipt of funds without visiting offline branches.
At the same time, users themselves note that they use banking applications to check the balance or transaction history (81%), pay bills (63%), check the deposit (45%), contact the support service (45%).
Features of banking applications built using neural networks
1. Fast data processing
Artificial intelligence technologies make it possible to quickly process huge amounts of data and processes in real time.
2. Chatbots and online helpers
This functionality allows you to reduce the time it takes to solve problems, starting with template user requests to provide individual solutions to each client. An automated representative of the bank support service powered by AI can handle many incoming client requests. Thanks to the receipt of user data from mobile devices, the mobile banking application processes them using machine learning in order to provide the necessary information or redirect the user to the right source.
3. Card management system
This technology will allow the introduction of automation for both credit and debit card management systems and make the whole process more secure. This allows the client not to go through a long authentication process, for example, in case of loss or theft of a card.
Future features: banking application trends
It is likely that voice commands will become the dominant user tool in the next few years. According to studies, by 2020, up to 50% of search queries on the global Internet will be generated using voice.
The voice interface for users makes the process of interacting with customers more accessible. Thus, the developers of the fintech segment should consider ways to implement this innovation, following the progress, or stay behind.
ATM cash withdrawals using the app
Thanks to near-radius technologies or a QR code, you are already withdrawing funds, but there are banks that already provide users with the opportunity to complete transactions without a card using the application in collaboration with such systems: Apple Pay
Study at MasterCard shows that users are more and more willing to use biometrics as an alternative to replacing passwords. They see this as a more convenient and safer process. More and more financial companies are investing in the development of mobile banking authentication for customers. This will allow users safe and convenient entry from anywhere in the world.
Promotion of banking applications
The promotion of FinTech applications differs significantly from the promotion of utilities. This is due to the specifics of the product. The communication strategy should be tied primarily to the brand and to convey the benefits of the product, both for the new application and for the existing one. Promoting the bank’s mobile application, be prepared for the following: the high cost of attracting the user;
longer time until the target action;
difficulty setting up analytics and tracking user paths.
When launching a new product, the first thing to do is to carefully analyze the market, competitors and the FinTech niche ecosystem as a whole, taking into account the region and mentality in which you plan to present the product.
The main points that you should determine before investing in product promotion:
your target audience (will provide an opportunity to develop a more appropriate approach for communication with potential customers); uniqueness of your product in comparison with competitors (it will allow you to use your advantages in promoted content, thereby attracting users to your product).
To present your product to the user, it is very important to warm the audience’s interest. This can be done using content (banners, videos, articles, posts, etc.) used in advertising or other means of promotion. The better you know your audience, the better your chances of determining what type of content really suits her.
The cost of attracting users in financial applications
Average the cost of attracting one user to the application (CPI) in 2018 is $ 6.93. The price for achieving the registration goal is even higher – $ 25.73, and for activation is $ 37.05.
Please note that with an increase in cost per attraction, the conversion rate decreases. Competition in the banking and financial applications market continues to grow, and users become more demanding, with a full understanding of what they expect from the product. Marketers need to increasingly apply non-standard approaches in promoting fintech products in the application market.
Interaction with platforms in financial applications
The cost of attracting users for Android is cheaper than in iOS. But there is practically no difference in cost for completing registration for the two OSs.
Case Monobank: promotion experience
Monobank is the first mobile bank in Ukraine that does not have offline branches. At the time of promotion, the product was innovative and there were no similar start-ups in Ukraine. Therefore, the strategy set itself the following tasks: brand awareness;
motivation of users to interact;
Conversion of the target audience into actual customers.
The basis was the AIDA (Attention, Interest, Desire, Action) method.
Advertising campaigns aimed at attracting the attention of potential users. Then maintain interest by informing users about the benefits and benefits that the product offers them. After the motivation of the user to receive and activate the card. And at the end, customer retention through the wide range of services that Monobank can offer.
As a result, we divided the promotion into three stages:
Pre-order cards (on landing)
For each stage, tools were selected that solve the tasks of promoting the landing page and installing the application by users. With each step, we added tools in the order that was laid out in the plan. Thus, a phased strategy with the right set of tools gave us the opportunity to increase brand awareness and attract new customers.
The application release was planned for November 2017, and activation of 45,000 cards was planned by April 2018. Using our strategy, we managed to achieve these results by January 2018. You can learn more about this at the link.
In the end
Innovative technologies are constantly improving and changing our world. Choosing the right strategy, determining your target audience, as well as introducing leading technologies and functionalities into applications these days gives a significant competitive advantage in the banking ecosystem. We single out the main points that need to be paid special attention when launching a new application: Defining your target audience
the correct nature and sequence of interaction with users;
attracting and retaining users;
the cost of attracting users.
Thanks to smart functionality, banks and financial products are able to analyze user behavior and provide personalized solutions using applications. It remains for us to learn to use these opportunities and apply them to conduct or improve a business.