Banking / Finance

Mobile banking 2.0: six ways the experience must evolve

11th Feb `16, 12:23 PM in Banking / Finance

The mobile apps banks and credit unions offer today typically focus only two functions: payments and savings. Most…

BDMS
Guest Contributor
 

The mobile apps banks and credit unions offer today typically focus only two functions: payments and savings. Most people have a whole host of other financial products — e.g., loans and investments with other institutions. The result is that most banking apps only provide a partial picture of an individual’s finances, which creates problems for institutions aspiring to deliver digital advice.

So the next big trend is aggregation — combining people’s financial data from multiple sources to create and analyze a holistic picture of their finances. A customer needs to know their total income and spending, the value of their loans, savings, investments and assets before they can make reliable plans and smart decisions based on a realistic budgets, right? Despite the formidable legal and IT hurdles, some providers have started tackling this challenge, but the enormous potential value to users suggests that the riddle will ultimately be solved.

In effect, banking providers will have to rethink their business model, moving beyond the dream of being the single multi-product provider to their customers to one where they offer value-added platforms for customers to access and manage their finances, whatever the source.

But why stop at financial products? Having built a complete financial platform for their customers, banks and credit unions could also provide access to the purchase of other products and services. Many financial institutions fret that the likes of Google and Amazon might move into financial services and eat their lunch. But by providing access to multiple online marketplaces, banking providers could beat tech titans to the punch.

Read More
MORE FROM BIG DATA MADE SIMPLE