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Mobile banking Updated: 22 Aug 2017

The keys to mobile banking: the time has come

Simple, Moven, GoBank, Fidor Bank are leading the way to mobile banking, financial institutions without branches that are causing a digital transformation in banking.

RESOURCE recurso mobile work job Businessman checking the mobile phone sitting on his desk

Simplified transactions, real-time analysis of operations, opening of current accounts... mobile banking as it is now already provides many of the financial services. It is a reality, not a future trend.

And proof of this is that all growth estimates for the financial sector are based, above all, on mobile banking. According to a PwC survey of financial and technology managers worldwide, mobile banking will grow by 64% up to 2016 and online banking by 37%, while branches and telephone banking will fall by 25 and 13%, respectively.

What is the attraction of this kind of bank? What is essential for users is the convenience and simplicity with which they can make their transactions. They can control, manage and perform all their financial transactions comfortably on their smartphone, without having to go to a branch or wait to be attended by phone. Accessibility is the key and it requires strategies to be improved and promoted with regard to the user experience, focusing on the customer of the digital age.

The attractiveness to banks must also be considered, especially in terms of profitability. Traditional financial institutions are beginning to commit to mobility because mobile transactions are less costly than branch-based transactions.

Another advantage for the user is the personalization gained thanks to analysis, practically in real time, of their expenses, revenue and transactions. Thus, customers can manage their money better, and the institution, for its part, can gain great customer insight, enabling it to offer personalized products and services to meet their needs at each moment of their life.

However, it should not be forgotten that traditional banks already have a head start in this regard, as they have a significant history established through relationships with customers over many years. Rather than starting from scratch, traditional institutions take this as the starting point in their digital transformation toward offering mobile services that complement more traditional solutions.


Inherited traditional systems that are difficult to integrate

One of the tasks that large financial corporations are undertaking is simplification of their operational models to adapt to the new digital era. This transformation is more complicated in retail banking because its has lower resources.

While traditional systems have helped banks to know their customers' needs, it is now necessary to make the transformation to the digital age, because, in addition to these needs, banks have to meet the new requirements of today's customers.

Adapting to change in culture

If the business model is shifting toward digital, a change of strategy and a new talent assessment are required. Shortcomings have to be identified and learning enhanced through a culture of open innovation and collaboration. This key to this transformation is imagination and creative thinking, which the freshness and flexibility of mobility bring to the bank's culture.

The way chosen by most banks is to build a digitally-focused organization, where service delivery is centered around mobile devices. This integration offers the institution the best of both the traditional and digital eras, but always basing its strategy on customers and on meeting their new requirements.


Traditional financial models have invested heavily in obtaining the identity of customers, in having knowledge of their transactions and their data. Now digital banking faces an era of constant evolution, having to make use of all this data, and so security is a growing concern for institutions. The challenge is to maintain customer confidence by strengthening security levels in the areas of mobility.

Lack of budget

To be competitive in this new era, investment is crucial. It is necessary to structure and maintain a simplified technology platform, address new stages of training, generate customer analysis programs, and foster innovation to ensure the long term viability of the change. Many institutions in the financial retail sector have problems with the budget needed to meet these challenges.