Mobile banking prepares the next stage of the digital shift

The announcement of major enhancements to Google Wallet gives a sense of the centrality of mobile payments and financial apps as the second phase of the digital journey kicks off, focusing on mobile money.

It’s been a busy week in the world of mobile payments, as Google’s Wednesday, May 11 announcement of new features and functions for the Google Wallet app and Google Pay (GPay) was one of many actions taken by app players to update experience and usefulness for 2022 and beyond.

Read more: Virtual cards, new wallet create passports, lanes for push button commerce

The PYMNTS study found that mobile apps are the most used method for consumers to interact with their accounts by 41% of banking customers surveyed, with banking banks being preferred by only 11%.

Get the study: The brewing battle for where we gonna cash in

Neobank N26 on Tuesday (May 10) revealed its work with Mobile DevOps company Bitrise to improve and secure the mobile banking application experience at a time of critical growth.

“For a company like N26, which is entirely mobile-based, the speed of its releases and updates in the Apple and Android app stores and the quality of its security is not just a mobile issue; they can make or break their entire business,” a press release said.

In addition to automating all mobile workflows by expanding threat modeling and vulnerability detection, the statement said, Bitrise worked with N26 to launch N26 Smart, “its mid-tier subscription plan with banking features. advances; Income Sorter, a way for users to automatically save every time they get paid; Round Ups, which allows users to automatically register their spare change; and Split the Bill, which allows users to split payments with family and friends directly from the app.

Partnership on personal finance apps

Another regular in the PYMNTS app vendor rankings is financial app Current, which on Tuesday announced the launch of its application programming interface (API) platform and a partnership with Plaid that will allow users users of the app to benefit from Plaid’s ecosystem of 6,000 open financial apps and services. .

Current has partnered with Plaid for scale, as the latter is known for “integrations with over 12,000 financial institutions, including neobanks and FinTechs,” according to a press release.

“Current members can now easily connect their account to thousands of other FinTech apps, including digital payments, financial planning and investment tools, on the Plaid Network,” the statement read. “The rapid onboarding was enabled by Current’s API and leverages phone number and device authentication, which eliminates reliance on banking credentials from the ecosystem and provides a frictionless customer experience.”

See also: Ranking of digital banking app providers sets some aside for a rainy day, with 15 apps in the top 10

As personal finance apps seek their own level through differentiation strategies, many banks and financial institutions (FIs) are rapidly revamping to retain customers.

Earlier this year, neobank SoFi acquired banking software company Technisys to bolster its app offering. SoFi CEO Anthony Noto said, “Technisys has built an attractive, fast-growing business with unique and essential strategic technology that all leading financial services companies need to keep pace with digital innovation.

Read more: SoFi pays $1.1 billion for banking software company Technisys

The wrong app

According to the May Digital-First Banking Tracker, a collaboration between PYMNTS and NCR, 86% of US consumers are satisfied with their banks. That’s the good news.

However, “a significant number are increasingly open to working with new vendors, including FinTech companies and other non-bank vendors. banking” as part of their plan to improve their financial well-being.

Consumers increasingly see mobile apps as the best way to manage their finances, making upgrading personal finance and payment apps a strategic imperative this year.

To put the extent of this trend into context, Digital-First Banking Tracker noted that 78% of Canadian customers are banking overwhelmingly digitally, with “89% reporting having used online banking in the past last year and 65% of Canadians have switched to mobile services. apps in 2021. Additionally, 75% said they would continue to use these new digital tools.

In a pointed point, the Tracker added, “the post-pandemic reality is that mobile is the new bank, and unless FIs forge strategic technology partnerships to quickly and easily implement new payment tools solutions that give consumers the speed, flexibility and convenience they want, their customers won’t hesitate to walk away and find providers who will.

Get the tracker: Digital Bank Tracking First

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NEW PYMNTS DATA: THE TRUTH ABOUT BNPL AND STORED CARDS – APRIL 2022

On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveyed 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.