About two-thirds (approximately 203 million people) of the U.S. population use digital banking services. The latest data is still being compiled but according to tearsheet.co, about 80 percent of mobile users made a purchase on their smartphones in 2020. Specific to the U.S., 86 percent of users used their mobile devices to check their balances.
Additionally, Bankrate found that 61 percent of account holders use their financial service provider's mobile app regularly. We can see that it's clear every financial institution should have a mobile app. Mobile apps enhance customer experience and loyalty. They also cut down on first-person customer service engagements due to the many self-service features available in banking apps.
Mobile apps allow financial institutions to better engage with customers. One of the reasons is because of push notifications. Push notifications send a notification from the financial app, which appears as an alert on the customer's phone. Because customers always have their mobile app, they are able to respond to these notifications at any time. Notifications can inform customers of potential fraud, balance limits, new offers, and more. Of course, banks and credit unions don't want to abuse this privilege by sending a steady stream of notifications or notifications that present no value.
Customers want security and personalized service. Mobile apps allow financial institutions to deliver on these requests. Many phones use biometric authentication. This is seamlessly built in for mobile apps and doesn't require financial institutions to roll their own solutions.
Mobile apps allow customers to personalize their experience. Customers can enable specific notifications and app features. The amount of customization is up to the financial institution. Financial institutions can also customize the offers a customer receives through their mobile app. Depending on a customer's financial situation, a bank or credit union can send notifications at the right time.
Until something replaces the smartphone, this will be an area many people spend the majority of their time. It's also why financial institutions must embrace a push to fully develop their mobile app offerings.