For millennials, the ability to easily check balances, pay bills and transfer money on a mobile banking app is no longer enough.
To land and retain millennials as customers, mobile banking apps must graduate to leveraging the native functionality of mobile hardware. Each and every function of the mobile phone can be used to differentiate the engagement a bank has with its always connected customers.
Following is a list of seven features that are defining the next generation of mobile banking:
Bluetooth
Mobile banking apps that use Bluetooth can take advantage of Beacons —
The IoT devices that communicate with mobile apps can also transmit relevant banking alerts and promotions and offers at merchant locations, in addition to making contactless payments.
Near-field communication
The camera
The
The mobile phone camera can also enable
The microphone
In addition to using the device speaker phone for calls, the microphone can enable services like voice banking using Apple's Siri or
Furthermore, the microphone will enhance the security of mobile apps by offering voice-based authentication and the ability to use the voice as a password. Expect common voice-enabled instructions like "give me directions to the nearest ATM" or "send 20 bucks to Jack."
GPS
GPS can do a lot more than help navigate a person along the roads. It is being used for
Biometric functionality
As the reliance on mobile banking grows, so too does the need for stronger security and easier authentication. Today, most modern mobile phones offer fingerprint authentication, such as
Virtual reality
Virtual reality and augmented reality, which are just beginning to capture public attention, are steadily becoming technologies that create immersive engagement with customers. Several banks are leveraging the technology to create virtual meeting places with their customers, augment data dashboards and portfolio performance and provide a surprising experience that inspires customers to advocate for the bank's brand. For example, VR could create a memorable experience by being used in the bank branch to do a virtual tour of a real estate property for someone applying for a home loan.
Today, the mobile phone is much more than just a phone. To capture the wallets of millennials, banks must make use of the smartphone's many features and deliver digital experiences that are natural and intuitive.
David Horton is head of innovation at Synechron, a global consulting and technology firm.