In the not-so-distant past, it was common to visit a local branch of your bank to perform financial transactions. If you needed to deposit a check, make a transfer, or perform any other number of tasks, you were stuck waiting in line at the bank. That line was often long and time-consuming to get through.
Today, it’s become increasingly rare to visit banks in person. This is all thanks to the rise of mobile banking apps. Now, we can quickly and efficiently do most of our banking from anywhere in the world.
Mobile apps are rapidly transforming the future of finance. Here are some of the most notable changes we have seen or will likely see in the future.
Mobile Banking Usage On the Rise
Even if you have a local brick-and-mortar bank, chances are you probably use your bank’s mobile app quite frequently. Mobile banking apps make it fast and easy to check your balance, initiate internal or external transfers, deposit checks, and much more. A good mobile app can improve your quality of life, and that's exactly what mobile banking apps accomplish.
Even most small local banks have an app. They have to if they want to compete with the bigger banks. After all, most people would much rather bank from the comfort of their home than go to the bank just to perform a simple task. Unless you’re opening or closing an account or you have cash to deposit, there isn’t much else that you can’t do right from your smartphone.
Fintech is Challenging Traditional Banks
Not only does your local bank likely have a mobile app, but there are several financial technology (fintech) companies that offer online-only alternatives to traditional banking. Chime and SoFi are two of the most well-known online banks. They operate 100% online with convenient mobile apps and neither has a single physical branch.
Like traditional banks, these fintech banks are FDIC insured and generally have the same benefits as traditional brick-and-mortar banks. In fact, an account with an online bank typically offers much higher interest rates than a traditional bank because they don’t have the overhead that comes with operating many physical locations.
Mobile Payments Are Becoming More Common Than Cash
In the grand scheme of things, mobile payments are a new technology. Mobile payments were first introduced with the Google Wallet in 2011, and Apple Pay launched in 2014. In the early days, adoption rates were low, primarily due to retailer POS systems that lacked the necessary NFC payment technology.
However, as retailers update their systems and mobile payments become more trusted, usage rates rapidly increase. In the United States, only 3% of payments at retailers were made via digital wallets. That number steadily increased to 11% in 2021. In 2021, cash payments were also at 11%. Expect mobile payments to overtake cash very soon.
App Users Can Invest From Anywhere
Mobile apps aren’t just limited to basic banking, either. Apps such as Robinhood, TD Ameritrade, and a host of others allow you to invest with nothing more than a mobile app. You can buy and sell stocks, ETFs, and cryptocurrency in real-time. Most of these apps also come with no transaction fees, which allows for a better return on investment.
These investment apps provide plenty of charts, data, recommendations, and even news articles about the investments you’re considering. So, you can trade with plenty of information right at your fingertips to help you make the best decisions.
When you owe friends or family members money—or they owe you money—mobile apps are now making it easier than ever to pay each other. There’s no longer a need to go to an ATM to withdraw cash to then pay whoever you owe. Instead, just a couple of taps on your smartphone’s screen can instantly transfer the funds for you.
Many banks utilize Zelle, which is an instant payment system that you can use to transfer money from your account to a friend’s with only their phone number or email address. This is a good option, but there are alternatives.
Any iPhone user can use Apple Pay to immediately send money to a friend, and there are third-party options like Cash App and Venmo that do the same. These apps are particularly useful when you’re at dinner with a large group and want to split the bill.
The Bottom Line: Mobile Apps are the Future of Finance
In the future, we’re sure to see finance driven even more so by technology. The convenience and efficiency of mobile banking, investment, and payment is a game-changer and we’re never looking back. Financial apps are incredibly beneficial to consumers and are powerful for finance businesses. However, building an app takes a lot of planning and development expertise.
At Camber Creative, we know a thing or two about mobile apps. If you’re planning a mobile app and looking for professional help to get started, get in touch. We’d love to help get you on the right track.
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