Establishing an Element of Trust for Financial Mobile Apps

By Ruchir C.

In the world of mobile banking solutions, trust is known to be an essential component offering flexibility and convenience to its customers. The grown appetite has attracted newcomers with its banking services and traditional institutions. The banking channel ensures trust and communication with its customers on Android and iOS mobile devices.

Mobile apps have revolutionized the marketplace, managing the finances of 2.7 billion people using e-wallet applications in 2022. Furthermore, the number of transactions grew by 121% in 2022 for 88% of overall banking transactions. Developers are continuously innovating banking apps; it has become a crucial part of our lives to stay up-to-date with speedy competitors in the market.

Contactless payments and transactions worldwide continue to be the convenience+ for every individual. At the same time, developing a banking app, optimizing users’ experience and facilitating their needs for sending and receiving transactions easily. Mobile banking apps also ensure that the users can complete the tasks independently at any location.

The mechanism of digital trust involves identifying a client’s confidence through customer behavioral patterns. The secure elements like accessible transactions connect consumers and build a long-lasting relationships with existing and new customers. In the digitalized world, the banking industry faces challenges building trust and fulfilling its customers’ expectations.

The rapid growth of digital transactions has established trust globally more than in the traditional physical world. COVID – 19 pandemic has made online transactions the new normal leading digital solutions a massive adoption in recent times.

This article throws light on some essential elements of the financial marketplace.

Why Mobile Banking is Important?

Mobile banking enables accessible banking services to its customers. This refers to the financial transactions carried out by your mobile devices. Moreover, financial institutions provide services to their users and clients for several transactions. Mobile applications are now beneficial for business owners to handle their businesses effortlessly. Online transactions are now popular amongst small and medium-sized enterprises (SMEs).

24*7 accessibility

Banking services are far more different from traditional banking, revolutionizing the financial services for their customers. Mobile applications save customers' time from standing in long queues and let them attain most of the services at their place. The financial institution provides 24*7 accessibility to its consumers by featuring mobile banking applications. Hence, this has empowered every customer to access all the services anywhere.

Instant account opening

This unique feature allows you to operate an online bank account without physically visiting the branch. You can effortlessly access your smartphone's bank account from native application processes. This ultimate was highlighted during the COVID-19 pandemic when major places were shut down, so the banking services opted for online applications for their customers. Eligible customers filled in all the details, and necessary documents were uploaded on the main portal. The next step is followed by the e-KYC of the applicant required for completion of the authentication process. Lastly, the applicant's account is now ready to use after completing all the procedures.

Easy access

The easy access to all the features makes the financial app advantageous in every segment. It is easy for everyone to carry a mobile app on their smartphones to transfer cash from one account to another. You can also send the money through online banking in any country, having 24*7 access to your accounts.

Higher security

The feature examining mobile security protects your phone from hacking your personal information. Multi-factor authentication (MFA) is an innovative way to protect your device against technical glitches. Through MFA, you can connect your account with your mobile device. Thence, you get an alert on your phone whenever somebody else tries to log in.

Secure and fast transactions

The customers have undergone tedious stages while creating a bank account. There's always the risk of an impersonator imitating your signature while withdrawing your funds from the bank account. But this forgery is not possible in online transactions as it safeguards your account with multi-level authentication.

Banking Industry Trends

Financial app development has shifted to digital platforms, increasing the competition among smaller banks and startups. According to CB Insights, Fintech hit $32.6 billion by the end of 2018 from a total figure of $17.9 billion in 2017, rising to 82%. Over the last few years, digital transformation has scaled its economy. The automation of traditional banking services is called digital banking.

Mobile Banking

Mobile banking is a major requirement for everyone to send and receive money online. 89% of respondents from Insider Intelligence’s Mobile Banking Competitive Edge Study in 2018 revealed that they preferred mobile banking to 83% in 2017.

With the trends, the digital banking industry is swiftly adopting advanced technology to develop their product. Additionally, several tools and features have increased the value of the login system of bank accounts. Fingerprint scanning is one of the main features for customers.

Online Banking

Online banking is known as a convenient medium that efficiently interacts with customers. Customers interact with their banks through mobile banking rather than at physical branches. As a result, customers found it overwhelming to connect over digital banking channels and Chatbots, which has declined the branch visit consequently. Over 53% of the respondents said they visited the branch to deposit a check compared to 41% of the population who withdrew cash and 36% who deposited cash.

Investment Banking

A type of financial service advised by a company or a person to individuals, businesses, and government bodies on how and where to invest their money is known as investment banking. The rise of robotic advisors, artificial intelligence (AI), and automated processes have started managing money space. Predictive analytics helps investors go for profitable outputs in real-time to save their costs.

Artificial Intelligence

AI has helped streamline financial services for consumers. It has limitless capabilities and improves security and fraud detection in customers’ apps with beneficial developments. AI and smart business banking handles bulk inquiries and gathers important data about the entrepreneurs to run their businesses.

Super Apps

Super apps are necessary for business banking with all their potentialities providing exciting offers to their customers. Business banking services consistently provide advantages to their customers for ultimate opportunities for their entrepreneurs.

Sustainable Banking

Nowadays, it is easier for companies to measure their carbon footprints to achieve carbon neutrality by funding sustainable organizations. The banking sector is exceptionally growing, aligning financial services with the help of sustainable models. Businesses actively participate regarding rising climate change impacting finance. Most importantly, consumers demand the growth of a sustainable world through tech startups dominating the market.

How AI Has Shaped the E-Wallet Application

Technology has made a variety of options in our day-to-day lives, impacting payment methods. Technology has significantly innovated digital wallets in the last five years, increasing transactions to $4,296 billion within two years. Transaction banking has conditioned the AI to support several customers interacting with day to day banking. It has generated large value through developing products and services for the future.

Future trends have advanced and have influenced the payment system across the globe. The rise of mobile wallets gradually secures customers' information and provides convenient payment methods worldwide. Let's know more about the e-wallet trends of 2022 impacting the marketplace globally.

Mobile App Banking: In 2014, Apple introduced mobile wallets, and with its embracing success, competitors designed their payment apps such as Android Pay, Microsoft Wallet, etc. Online banking has ditched traditional methods of payment completely. Further, the development of mobile app banking has improved customers' banking experience by assisting them throughout.

Loyalty Rewards: Customers are extremely attracted to the reward policy, so the banks started offering discounts and rewards on every purchase. This way, the customers will remain loyal to the brand if they are provided incentives now and then. Retailers get left behind as everyone has shifted to online purchasing products and services.

Near Field Communication (NFC): It is essential to enhance banking app solutions through the security and simplicity of NFC technology in present times. This technology reduces the time and effort carried out for multiple transactions. NFC wallets are contactless, and many users prefer to use smartphones to make payments. To make a payment, the terminal's proximity must be close to the contact numbers making payments. For instance, PayTm or Google Pay are NFC based wallet solutions. After looking at the popularity of these apps, investing in NFC wallet solutions is extremely worthwhile.

Artificial Intelligence Based Wallet Solutions: The advancement in AI has proficiently managed the interactions with the customers. Routine interactions through Chatbots and voice instructions reduce other operational costs and the need to interact with an agent. Several e-commerce companies also believe that AI has emerged drastically in every sector. Companies are concerned about customers' experiences related to digital wallets or AI-based wallets. Nowadays, AI has developed to a certain level that can also handle voice instructions while automating basic transactions.

Cryptocurrency Wallets: Cryptocurrency has been accepted worldwide by various startups and small and medium businesses. After developing such apps, the cryptocurrency wallet app solutions have augmented from 6.7 million to 42 million over three years. At present, cryptocurrency is not limited to exclusive investors, but it enormously benefits all businesses. Also, the transactions lead to secure and low costs in the future.

How Psychology Impacts Finance Sector?

Psychologists have been studying human behaviour for more than a century. The research has resulted in the development of consequent theories related to issues with financial accounting. Researchers have revealed that human behaviour in such accounts includes judgements and decision-making of managers, investors, analysts, and auditors. Consequently, psychology offers an enhanced version of theories on the financial sector, arguing major obstacles regarding human behaviour.

It has been noticed that high-quality investors' education and financial literacy programs benefit their participation all over. The range of social, cognitive and psychological factors prevent rational financial choices. Theories like financial socialization, the Theory of Planned Behaviour, and gamification offer collective learning insights influencing the self-efficacy of every individual respectively.

Economic behaviour and economic psychology are the studies of behavioural economics. It requires both psychology and economics to measure accepted economic models' logical decisions and predictions. Psychological explanations are necessary for context to maximize good judgements reflected in the stock market.

The psychology of financial well-being is necessary in today's resilient world. Traditional pension communication and education programmes help improve the financial position of every individual. Consequently, behavioural sciences are mainly focusing on the behaviour of people and the way they think as empirical evidence, which includes economics, psychology, anthropology, pedagogy, sociology, and social marketing.

Herbert Simon, the behavioural economist, stated that most the individuals use heuristics when they are confronted with complex decision. Heuristics are mental shortcuts used when an individual has to make a quick decision to analyze an investment decision. It has been noticed by researchers that we generally use cognitive ways to develop economic and social transactions.

Additionally, people should teach budgeting techniques to become aware of the socioeconomic strata to enjoy a higher quality of enduring products. Financial psychology is mainly considered the study of the human behaviour and mind, which covers money-related behaviours and decisions.

Elements of Financial Apps

Mobile wallet has been the latest buzzword in the corporate field. Every individual prefers to make transactions through their mobile devices, which has created opportunities for several enterprises and mobile app development companies. On the other hand, entrepreneurs are keenly leveraging the trend of financial app development to ensure the safety of their customers.

Every company’s biggest concern was to keep the customers’ data safe and secure at every stage. The information provided by the customers is personal and sensitive. So let’s understand elements of the financial sector in detail.

Prioritize the Use of Data Encryption Techniques

Hackers will always target the financial information of users. So, you must not use personal information to encrypt the data. This information includes security numbers, names and addresses of the individual. It is easier for hackers to track your payment history and the numbers of your credit and debit cards.

Encryption thereby refers to the protection of data during its transmission. Therefore interception of the data is extremely easy at this stage. You can secure your data transmission with the help of several encryption algorithms. For example, the U.S. federal government relies on AES.

Consider Building Infrastructure Security

Creating a secure infrastructure for the customers is initially crucial to leveraging the app you develop. It is essential to create a secure standard to build secure apps. For instance, the AWS enterprise cloud can help your app recover from event disruptions and DDOS attacks. Also, you must ensure that internal standards are complying your cloud vendors.

Secure Your Daily Workflow

Majorly the human factor is responsible for the security breaches faced by an organization. So, the reduction of human factors will help implement quick measures to ensure the recovery of your app. Regular backups must be introduced for code, data, and files while practising security rehearsals.

Critically, it would be best if you practiced security rehearsals to stimulate potential acts of your employees during emergencies. Also, clear and coherent access is necessary to prevent data. Lastly, workers should ensure that the workers can use corporate hardware and sign NDA agreements.

Create a Secure Application Logic

The integration of security with the app building logic works wonders for the betterment of your app. Complex security storage of the data protects it from imminent threats during the early stages of development. Moreover, two-factor authentication is considered one of the finest security systems. Several other best practices to keep your data secure are:

  • To monitor every transaction and block that appears to be suspicious.

  • Focusing on strong passwords.

  • Implementation of the multi-step approval process for critical operations

Focus on Web-Server Security

A web server often targets external attacks to protect users’ data. For this reason, omitting is deemed to be the most trustworthy step. However, using VPN can indeed add complexity to the web server maintenance. You must hire a professional development team for regular check-ups for all components.

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Conclusion

In conclusion, digital wallet solutions and mobile application development have changed the way of work in the financial sector. People nowadays prefer digital wallets while heading toward the default mode of payment. As mentioned earlier, the trends of financial app development are accepted in the marketplace. It is beneficial to invest in mobile application because it is widely accepted in the marketplace.

Undoubtedly, investment apps regulate security from cybercriminals to save users' sensitive data. Due to enormous rules and regulations, clients are experiencing fiction, less cashless experiences. For more information, contact Idea2App for the development of your financial app today!

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