Many banks are losing touch with the mobile banking trend

Banks are increasingly confronted with the change to digital business models. The rapid spread of mobile devices has a major impact on how we use our bank accounts. According to a study by the Lucerne University of Applied Sciences, many banks are falling seriously behind in mobile banking. Over 50 percent of internet accesses in Switzerland now involve mobile devices. Anyone who misses this trend risks being left behind by the competition.

Increasing deployment of digital business models and a trend towards greater use of online products and services have been evident in the retail banking sector for years. In their latest bank survey in 2014, the Lucerne University of Applied Sciences examined how Swiss banks deal with technological trends such as mobile banking. The study authors concluded that the banks need to focus more on new digital technologies and said that banks are falling seriously behind in the digital race.

In great demand

The banks need to embrace this trend, as otherwise their direct competitors or large technology companies could meet their customers' needs better in the future. Apple, Google and Facebook have been trying to penetrate the cashless payment market for a good while already. There is a real demand for this technology, as can be seen from the above-mentioned study. However, it is worth noting that bank customers prefer the mobile banking services of their own banks for security and privacy reasons.

The Swiss software company Netcetera, which also has a branch in Vaduz, recognized the growing significance of mobile banking at an early stage. In 2010 they developed the first Swiss payment app for PostFinance. Since then, Netcetera has become the undisputed market leader for mobile banking in Switzerland. Finnova, which supplies the most popular bank software in Switzerland to over 100 customers, has been a key partner in this evolution.

Much faster and cheaper

The two companies forged their strategic partnership in 2012. A year later they launched the Finnova Mobile Banking app, which enables bank customers to access their accounts, make payments and place orders on the stock exchange anytime and anywhere. However, the mobile banking app is not only intended to serve the customers; the bank's requirements are just as important. It contributes to brand maintenance and customer acquisition by incorporating the bank's corporate design and providing additional functions, such as a currency calculator, news, branch locations and more. Mobile banking can also be implemented much faster and cheaper than with an independent in-house solution. More than 50 banks are now using this app.

Staying ahead of the competition

When we look at the future of mobile banking, we see a trend towards personal finance management (PFM) with specific analysis tools for this purpose. Smart account statements are a key element of this because they allow incomes and expenditures to be classified and analyzed automatically. This gives bank customers a better overview of their accounts and enables them to draft personal budgets or financial plans.
Banks that embrace digital business models and prepare themselves for the future of mobile banking will be better positioned to meet the needs of their customers and stay ahead of the competition.

Published in Wirtschaft regional, Vaduz

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Peter Brantschen

Senior Software Engineer, Managing Director Liechtenstein

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