Ä¢¹½AV

Increasingly, banks will seek to start the customer journey even earlier with kid- and teen-focused financial apps, converting younger users into customers as they reach adulthood. What will the transformation to customer-centric banking look like in practice?

In this podcast episode, host Rob Rubin, alongside our analysts Lauren Ashcraft and Maria Elm, unveil the findings of Ä¢¹½AV’s latest mobile banking app benchmark report. They delve into the frontier of banking technology, spotlighting the breakthrough features that are shaping the industry this year. The discussion pinpoints the five key features that consumers consider indispensable and unpacks the potential game changers that may take center stage in the future of mobile banking. The episode also introduces a new segment titled "Who Ranked Best," where the team provides a detailed ranking of the top 10 banks, with an in-depth analysis of what sets the top five apart. This engaging conversation is packed with vital information for both consumers and industry professionals looking to stay ahead in the dynamic world of mobile banking. Tune in to explore: - The cutting-edge features that are redefining user experience in mobile banking apps - Consumer favorites: The top five features you should look for in your mobile banking app - The future of mobile banking: Innovations that are on the horizon - Exclusive rankings: Find out which banks are leading the mobile banking sector in "Who Ranked Best" - Expert commentary from Rob Rubin, Maria Elm, and Lauren Ashcraft, providing in-depth analysis of the report's results.

US Gen Z mobile banking users (ages 18 to 26) have above-average interest in innovative digital money management features, per our September 2023 US Mobile Banking Emerging Features survey. FIs that haven’t been able to fulfill certain customer needs because of low bandwidth or budgetary concerns may be able to do so by embedding fintech solutions in their apps.

That means the more user-friendly and useful (for their specific needs) FIs make their mobile banking platform, the more baby boomers could migrate over. Improving apps for baby boomers’ accessibility will benefit other ³Ü²õ±ð°ù²õ’ experiences as well. According to mobile app developer InspiringApps, here’s how FIs can make their mobile apps easier to use:.

Just a third of adults in Canada will use mobile peer-to-peer (P2P) payments this year, and adoption will barely grow through 2027. Mobile banking apps and digital wallets must rethink their strategies to capture P2P users—making the most of a population that doesn’t yet have strong P2P brand loyalty.

In a separate Keynova study—the Mobile Banking Scorecard—BofA ranked second overall, following U.S. Bank, while Truist and U.S. Bank ranked first for having the best app. How this compares to Ä¢¹½AV’s benchmark: Though our US Mobile Banking Emerging Features Benchmark 2024 report focuses on emerging features, BofA, Truist, and U.S. Bank still ranked highest.

The number of Gen Z mobile banking users will reach 52.5 million by 2027, meaning that 97% of them will be digital banking users by that year—the highest proportion of any generation—per our forecast. Winning Gen Zers’ deposits will depend on capturing their attention and trust early in the customer journey.

Apple’s credit card, BNPL product, and savings account put it in direct competition with financial services incumbents. With 130.1 million US iOS users loyal to its unsurpassed UX and dominant digital platform, the threat will only grow.

These digital-first consumers will overwhelmingly opt for mobile: The number of Gen Z mobile banking users will rise by roughly 4.5 million each year through 2027. And they won’t be going for digital-only banks: Nearly 94% of Gen Z mobile banking users cited a traditional bank as their primary bank in our September 2022 US Mobile Banking Emerging Features Benchmark survey.

Gen Z is reshaping the demographics of mobile banking users. The number of Gen Z mobile banking users will reach 42.9 million in 2025, overtaking Gen X. The number of millennial mobile banking users will peak that year. Gen Z puts billions of dollars in play.

And Gen Z in particular cares about better interest rates: More adult Gen Z mobile banking users cited rates on financial products as a top factor when choosing a new bank than overall mobile banking users, per our September 2022 benchmark survey.

UK mobile P2P payments usage growth has a case of the doldrums—but bank and digital wallet providers can explore several options to give it a boost.

This third annual study ranks the seven largest Canadian banks (by domestic asset size) based on their support for 42 emerging mobile banking features, weighted by consumer demand for each feature.

To attract the over 4 million Gen Zers who will become new mobile banking users each year, banks must refresh stale experiences, reinvigorate staid identities, and embrace new marketing tactics. Media habits will sway Gen Zers’ decisions. Social media channels are where to reach Gen Z.

By 2027, 97% of Gen Zers will be mobile banking users, totaling 52.5 million, according to our forecast, posing a significant customer acquisition opportunity ahead. Use this chart:. Evaluate investments in physical banking services. Strategize ways to appeal to Gen Z. More like this:. US Banking Consumer Habits 2023 (Insider Intelligence subscription required).

KEY STAT: Gen Zers will surpass all generations, bar millennials, by number of mobile banking users in 2025, per our forecast, making them a key target segment as banks hunt for new customers. Banks face an intensifying battle for deposits and squeezed margins in H2 2023. The US banking industry’s Q1 profit bonanza is behind us.

Fintechs, banks, and the government will reshuffle the payments deck in 2024. New features and competition will redefine the digital wallet user experience, and FedNow will pivot payment flows in new directions.

We break down consumer demand for emerging mobile banking features and bank performance by category to identify the most important tools Canadian banks should prioritize.

This shift from being merely convenient payment access points will increase wallet user loyalty and boost retail sales, thanks to:.