Best Mobile Banking Trends of 2024

In this article, we explore the existing and upcoming trends in the mobile banking industry. Get to know about the market and how these mobile banking trends help you.

We are all associated with mobile banking in one way or another. If you have a bank account, chances are you are using their mobile banking services. Mobile banking helps banks streamline their operations and reduce workload. Simultaneously, it helps users get a fast and easy banking experience.  

With such great advantages, almost every major bank has gotten into mobile banking, looking to create effective yet intuitive solutions. However, to keep up with such a dynamic industry, constant innovation becomes a necessity. Also, tech is always changing, and financial institutions have to stay on top of these new mobile banking industry trends that can further elevate their app’s effectiveness. 

Let’s find out some of the exciting advancements going on in mobile banking and how you can leverage it. 

Mobile Banking Technology Trends: Statistics and Figures 

Mobile banking apps are taking the finance sector by storm, and its popularity can be quantified with the help of these numbers.

• Mobile banking app downloads have risen from 26.5 million in Q1 2019 to a staggering 34.74 million in Q4 2023.
• According to MX Technologies, 45% of consumers are performing finance-related tasks on a mobile app at least once per day.
• The global Mobile Banking Market size was valued at $7.72 billion in the year 2022. This number is expected to grow to $20.90 billion by 2031, with a growth rate of CAGR of 11.7%.
• Almost 85% of banks and businesses used conversational AI in FinTech via chatbots.

What are Some of the Trends in Mobile Banking

The ever-changing nature of technology invites industries to incorporate new technologies and features that make their processes more efficient and streamlined. Let’s look at some of these latest trends and technologies.

1. AI-Powered Personalization

The impact of AI in banking is essential to say the least. In 2024, artificial intelligence (AI) will become integral to mobile banking. Business mobile banking trends like AI significantly enhance personalization. Banks use AI to analyze user data and provide tailored banking advice, personalized spending insights, and customized financial products. What's the result? This level of personalization helps users make better financial decisions. 

Furthermore, it also improves their overall banking experience. AI algorithms can predict user behavior and offer proactive solutions to potential financial issues. They alert users about potential overdrafts or suggest ways to save money based on their spending patterns.

2. Enhanced Security with Biometric Authentication 

As mobile banking transactions increase, the need for robust security measures also rises. To tackle this, AI in cybersecurity is also a major trend. In 2024, mobile banking trends like biometric authentication are one of the major trends that have become a standard feature in best banking apps. 

Technologies like fingerprint scanning. Facial recognition and voice authentication streamline the login process. They also significantly enhance security. These biometric methods are difficult to replicate. This reduces the risk of fraud and unauthorized access. Users gain peace of mind when conducting financial transactions.

3. Seamless Integration With Non-Banking Services

Another one of the latest online and mobile banking trends is Seamless Integration With Non-Banking Services. Banks are increasingly integrating their mobile apps with non-banking services. This aims to create a holistic service ecosystem. 

For instance, they are integrating with real estate platforms. Offering personalized mortgage advice. They also integrate with e-commerce platforms for seamless payment solutions. This trend enhances convenience. It also enables banks to play a larger role in the financial lives of their customers. Extending beyond traditional banking services.

4. Rise of Voice-Activated Banking

Mobile banking trends like voice-activated banking have taken a prominent place in mobile banking technology trends. More consumers use voice assistants to conduct financial transactions. Banks are using technology like Google to use voice commands as instructions to execute app functions. 

Apart from all this, this technology also enables users to better manage their accounts. If enabled, users will have to verify with their voice to get access to the information secured within their banking app.

This hands-free approach is not only convenient but also accessible. It allows users to make inquiries and complete transactions without needing to navigate through menus. As voice recognition technology improves, it's becoming a more secure and efficient way to interact with mobile banking apps.

5. Expansion of Blockchain for Enhanced Transparency:

As one of the most sought-after online and mobile banking trends, Blockchain technology is increasingly being adopted in mobile banking. Mainly because of its security and transparency benefits. Today, banks are using blockchain to enhance the transparency of transactions with the help of blockchain development companies. Not to mention that it also reduces fraud. Additionally, Blockchain’s decentralized nature ensures that transaction records are immutable and traceable. This provides an additional layer of security and trust for users.

6. Growth of Financial Wellness Tools

Mobile banking apps in 2024 will come equipped with various financial wellness tools designed to assist users in managing their financial health. These tools include budgeting apps. They also provide automated savings features and debt-tracking systems. All are integrated into the mobile banking app. These features empower users to have greater control over their financial situations. This contributes to better financial planning and stress reduction.

7. A-B-C-D verification process

One of the best future trends of mobile banking will include seamless Know Your Customer (KYC) verification. ABCD refers to AI, blockchain security, cloud space, and data. In this process, banking apps will collect a few personal information like transactions, ID, utility bills, etc. 

Moreover, the data will be secured in the cloud space and protected by blockchain technology. In the final step, AI will generate a report on the eligibility of the user for loans and other financial services.

8. Elimination of ATM cards for withdrawing cash

One of the most popular and latest trends in mobile banking is Cardless ATM withdrawals. Some banks have already introduced this feature into their ATMs. Using this feature will reduce or eliminate the need for debit cards in the future. 

The demand for this trend can be summed up with the fact that cardless ATM transaction value has reached $2.40 Billion in 2024. Moreover, this number is poised to reach the $3.81 Billion mark in 2029. (Source: Mordor Intelligence)

With the usage of the neo banking app, users will be able to login into their bank account and do the transaction. According to a report by Small Business Trends, in the U.S., around 70,000 banks will offer cardless withdrawals in the future.

9. Personal Finance Management (PFM) Integration:

Banks are increasingly integrating advanced Personal Finance Management (PFM) tools into their mobile apps. Why? Because these tools offer advanced budgeting, forecasting and financial planning features. Thus helping users manage their finances more effectively. By analyzing spending habits, they make recommendations on saving money and predict future cash flows. 

Moreover, as among the prominent future trends in mobile banking, these tools can automatically adjust budgets based on upcoming bills or earnings. This integration helps users maintain better financial health. Also, it encourages a more proactive approach to managing personal finances.

10. Convenient debt management

Debts can give many banking users anxiety. However, It is expected that the future of mobile banking will have a more convenient approach to manage their credits and EMIs.

Top financial apps like Wally and Pocket Guard are already helping customers break down their expenses. Moreover, these apps also suggest convenient ways of paying back the credit to its users.

11. Global Currency Accessibility

For many years, global travel and international commerce have been growing on a great scale. Hence, online and mobile banking trends like Global Currency Accessibility are also rising.  Mobile banking in 2024 has adapted to provide seamless currency management. Features that allow for easy currency conversion, managing multi-currency accounts, and performing cross-border transactions efficiently are now common. 

These capabilities are particularly important for users who work. People who travel or invest internationally now have flexibility. Manage funds in multiple currencies through a single mobile banking app.

12. Peer-to-Peer Lending

Peer-to-peer (P2P) lending has become an essential feature in mobile banking apps. It allows individuals to lend money to others without the intermediation of traditional financial institutions. 

Now, mobile banking platforms are increasingly incorporating P2P lending features. For instance, they enable users to earn interest on their savings. They do this by lending it to users in need of short-term loans. 

This trend not only provides higher returns for lenders compared to traditional savings accounts. It also offers borrowers more flexible borrowing options. P2P mobile payment apps is facilitated by advanced algorithms. These algorithms match lenders with credible borrowers. They also manage transactions and ensure compliance with financial regulations.

13. Smart contracts

To start with the definition, a smart contract is a self-executing contract. The terms of the agreement between buyer and seller are directly written into lines of code. These contracts run on blockchain technology. Thus ensuring transparency, security and decentralization.

In mobile banking, smart contracts can revolutionize how transactions are processed. They can automatically execute transactions when certain conditions are met. This requires no manual intervention or involvement of intermediaries. Such automation not only speeds up the transaction process but also reduces the potential for errors and fraud.

Smart contracts enable more complex financial products and services on mobile platforms. For example, they can create personalized insurance policies or loan agreements that self-execute and self-manage based on data like payment history and account balances.

Mobile Banking: Core Features and Functions

The role of mobile apps in banking is not something to be taken lightly. For the past few years, these apps have helped banks create a digital infrastructure to enable accessibility and convenience. And, for those interested in creating such a service, learning how to build a mobile banking app is essential to ensuring functionality, security, and user accessibility. Mobile banking apps typically include a variety of features that enable users to manage their financial lives efficiently. 

Key functionalities include checking account balances and viewing recent transactions. These apps also allow money transfers between accounts and paying bills. Additionally, most apps offer the ability to deposit checks through mobile check deposit. This involves taking a photo of a check and uploading it to the app.

Difference Between Mobile Banking and FinTech Apps

While the functions of mobile banking and Fintech apps sound the same, there is a big difference between them. Let's study some of these differences in detail. 

Why Should You Stay Updated With the Latest Trends in Mobile Banking

The importance of mobile banking trends is something every business or software development agency understands very well. 

1. Driving Customer Engagement and Satisfaction:

Mobile banking trends are fundamentally altering how customers engage with their banks. With features like real-time notifications. There are personalized financial insights. Interactive budgeting tools. Mobile banking apps are becoming more than just a way to conduct transactions. They are evolving into comprehensive financial engagement platforms. This shift enhances customer satisfaction by providing more value. Also, it fosters deeper engagement by keeping customers connected to their financial health on a daily basis.

2. Enhancing Financial Inclusion

One of most significant impacts of mobile banking trends is increased financial inclusion they promote. Mobile banking services are accessible through smartphones. Thus banks can reach underserved populations who may not have easy access to traditional banking facilities. This accessibility helps reduce inequalities in financial services. More people can manage their money effectively. Access credit and improve their economic well-being.

3. Promoting Innovation and Competition

Rapid evolution of mobile banking trends encourages continuous innovation within financial sector. As banks strive to meet changing expectations of tech-savvy consumers they are compelled to innovate. They must improve their offerings continually. This drive for innovation fosters a competitive market. 

Additionally, Financial institutions strive to outdo each other. To achieve this, these companies constantly seek new technologies and solutions. These enhancements can boost user experience and operational efficiency.

4. Increasing Operational Efficiency

Mobile banking helps banks streamline operations and reduce costs. By handling transactions digitally, banks can decrease the workload on branch staff and reduce overhead costs associated with maintaining physical branches. The data collected through mobile banking apps provides valuable insights into customer behavior. This allows banks to optimize services and tailor products to better meet customer needs.

5. Enhancing Security and Fraud Detection

With increase in digital transactions ensuring security is paramount Mobile banking trends like biometric authentication, encryption and real-time monitoring enhance the security of online financial activities. These technologies help prevent fraud. Unauthorized access is also deterred thereby protecting both the customers and banks. Advancements in AI enable more sophisticated monitoring systems. Machine learning facilitates systems that can detect and prevent fraud before it occurs.

Final Thoughts

The future trends in mobile banking we've discussed enhance the functionality and convenience of mobile banking. They also herald a new era of personalized, secure and inclusive financial services.

These innovations are not merely enhancements. They are pivotal to democratizing financial services and making them accessible to a broader audience. They empower users to manage their finances more effectively. Users can now engage with their money in ways that were unimaginable a decade ago. As banks adopt these technologies, the user experience is poised to become more intuitive. These trends tend to become more engaging and tailored to individual needs.