Without a question, throughout the past ten or so years, the emergence of mobile banking has altered how both consumers and companies engage with their respective financial institutions.

Customers may now handle their finances in a variety of ways at the press of a button, whether they are at home or on the road, thanks to the widespread use and accessibility of smartphones.

The progress made in mobile banking has led to unparalleled fintech innovation while also raising the accessibility and convenience of financial services to new heights.

Mobile banking has sparked the development of technologies like peer-to-peer payments and biometric verification, to mention a few. This highlights the necessity for traditional banks to modernize and adapt, or risk falling behind.

You need go no farther than a recent report by Juniper Research, which projects that over the five years between 2023 and 2028, the total value of transactions made using digital wallets would increase by an astounding 77%, from US$9 trillion to more than US$16 trillion.

The era of excessive personalization

We are more likely to be divorced than to have our bank account changed, it is reported.

However, one thing that mobile banking has made very clear is how much financial institutions must customize their products. If they don't, they run the danger of losing a sizable portion of their formerly devoted clientele.

Although "personalization" has always been a catchphrase in banking, we're moving toward hyper-personalization, where there's more pressure to recognize and cater to the demands of each individual.

"Mobile banking has paved the way for banks to excel and customer experience is more important than ever," says Louise Potts, Head of Banking Customer Advisory at SAS, a major software company. It's more convenient as well as more accessible. Customers may manage transactions, revenue, and outgoings in real time from the palm of their hands.

"Mobile banking and personalization go hand in hand. One feature that users may customize is the ability to create personalized alerts depending on their interests. This allows users to receive reminders to pay bills on time each month or encouragement to reach savings targets. Additionally, the industry as a whole is paying attention to the advancements in mobile banking as the need for more personalization increases.

An abundance of thrilling prospects

Michael Wallis-Brown, VP and Global Head of Mobile Financial Services at Ericsson, who has over 15 years of expertise in fintech, mobile banking payments, and consumer mobile applications, also touches on the topic of customizing financial services.

Wallis-Brown is especially excited about the innovation that is "driving remarkable growth in mobile money," which is the integration of open APIs into linked ecosystems.

The progression of integrated finance, he continues, "offers customized financial services via a single platform, ensuring a smooth banking experience for clients."

"In addition, it offers non-financial retailers an exciting chance to incorporate cutting-edge financial solutions, creating new revenue streams."

Brandon Till, Director of Business Solutions at Soldo, one of the fintech companies with the highest rate of growth in Europe, is thinking along similar lines.

Though he thinks that any obstacle in the way of mobile banking may be viewed as a chance for innovation, he is particularly enthusiastic about mobile banking as a component of linked finance, namely the use of open banking APIs to link tools and share data for a greater number of people.

"I believe there's room to grow," Till continues, "and leverage APIs to streamline cross-border transactions and incorporate financial services into commonplace apps, such as integrating budgeting and shopping apps."

Not exactly an even playing field

However, Till is quick to point out that not everything in the mobile banking area is cause for celebration.

Even if there are unquestionably many benefits, particularly in terms of accessibility and convenience, the truth is that access is still uneven globally as not all clients have access to a smartphone or the internet connection needed to take advantage of online services.

Members of some demographics, including the elder generation, may feel excluded because of this.

Till continues, "Vulnerability comes along with convenience, therefore security is another concern. Mobile banking consumers are vulnerable to increasingly complex online phishing attacks.

Lastly, even though banks are digitizing and putting their services online, some consumers still place a high importance on having a reliable personal relationship when handling their money and making complicated financial decisions. Mobile banking might not provide the same personal touch.

The physical branch's demise

This brings us well to the subject of consumer banking that is now receiving the greatest attention: the gradual demise of the physical branch.

Data from the US regulator, the Office of the Comptroller of the Currency (OCC), shows that in 2023 banking institutions announced plans to eliminate almost 1,500 branches nationwide, while just 472 were planned to open.

In the UK, banks and building societies have reportedly shuttered an astounding 5,835 physical branches since January 2015, at a rate of almost 54 per month, according to independent consumer organization Which?

Potts says, "Someone may prefer an in-branch consultation for a variety of reasons, including trouble accessing the internet, trouble locating a solution online, and navigating complex financial matters—especially those involving extensive paperwork or guidance."

"The way ahead is a hybrid banking model that allows consumers and companies to use online and in-person banking capabilities, allowing clients to manage their finances from wherever suits them most.”

Upcoming increased integration

So what's coming next for mobile banking?

Two major developments that are expected to shape the mobile banking scene in the upcoming years are the expansion of artificial intelligence and the broad acceptance of open banking.

Wallis-Brown is confident that a crucial component of the jigsaw will be the ongoing development of digital identification, which will advance a safe and smooth user experience. According to him, improvements in identity management that help further establish "know your customer" (KYC) procedures may guarantee security and compliance in a financial environment that is changing quickly while also putting in place a more transparent way to control data usage.

The capacity of platforms like the Ericsson Wallet to handle the combining ecosystems of traditional banking vs mobile, payments against fintech, and developing versus established markets gives them a distinct advantage, the speaker continues.

"A realized digital future where people, assets, and value can connect seamlessly is just around the corner."

Meanwhile, Till predicts that mobile banking will become even more ingrained in our everyday routines, merging with financial and non-financial services with ease.

"I anticipate seeing instant, personalized loan approvals, AI-powered spending analysis, and budgeting integrated into shopping apps," he states.

Physical branches won't completely disappear, though. They will change to meet more specialized demands, providing professional guidance and personal engagement to clients who are looking for relationships built on trust or who need to make complicated financial decisions.