What 2020 taught us about digital banking and engagement
MoEngage, the AI-enabled customer engagement platform, and featured as Leader in the 2020 Gartner Magic Quadrant for Mobile Marketing, is scripting a success story both for banks and their end customers.
The year 2020 has been a challenging one for financial institutions, but even crisis periods can have a silver lining. For banks, that silver lining was the chance to perfect the way they engage their customers digitally. With the pandemic limiting person-to-person interaction at branches, consumers have flocked to digital and mobile banking as a lifeline to their financial lives.
Mobile app adoption was already growing in subsequent years, but the trend began to spike even further in 2020. Take these telling statistics:
- According to The Financial Brand, 35% of customers adopted online banking, with 30% specifically increasing their use of mobile banking, since the start of the COVID-19 crisis.
- Downloads of mobile banking apps grew globally by 20 percent from Q1 to Q2 2020, according to the .
- The report also states that Daily Active Users (DAU) of banking apps increased by nearly six percent since the pandemic began.
Optimising the mobile customer experience
Many forward-thinking banks had already ramped up their efforts to make customer engagement a priority, driven by the trend toward online and mobile banking. Those banks have already started to reap the benefits, but many traditional banks and financial institutions have fallen behind the curve and are now forced to play catch up.
What can they do to digitally reengage the customer base? As a starting point, it’s important to acknowledge that today’s consumers expect a seamless, interconnected digital banking experience. That means providing the same focus of relevant content, offers, campaigns and a personal touch that they receive from every channel, be it mobile, online or in-person. Consistency and personalisation are the keys.
A report by global research firm JD Power validates this notion, saying that efforts to master what they call a true “Netflix of Banking” experience – where customers are fed a steady stream of likeable content and experiences – lies at the heart of all the woes of the banking industry. And expectations are even more prevalent with millenials and Gen Z audiences, which make up a growing number of online and mobile banking customers. Business Insider Intelligence’s Mobile Banking Competitive Edge Study reports that an incredible 97% of millennials use mobile banking today, compared to 89% of consumers overall (which is in itself an impressive level of adoption).
Helping banks scale mobile adoption
Some early movers in the banking industry have been very successful in rolling out a multi-channel customer engagement plan. Banks such as Ally in the United States, Airtel Payments Bank in India, and CIMB in southeast Asia have ably stitched together their online and offline presence to provide a seamless experience and a recognizable brand. MoEngage’s customer engagement platform is the central component of their strategies. Aggregately, MoEngage serves more than 500 million active users and sends more than 45 billion push notifications every month, and manages more than 100 billion documents at any given time.
A great example of superior customer engagement is global banking provider Mashreq Neo, which, in collaboration with MoEngage, recently won the , beating out more than 160 other banking brands. The financial company implemented a customer-centric engagement strategy with the use of disruptive digital user engagement technology that includes MoEngage’s AI-powered engine, Sherpa.
The advanced technology helped Mashreq Neo provide a 360-degree view of user behavior, helping to predict when a user is inclined to conduct to a next transaction, and when a customer cohort is likely to churn in the next 30-40 days, resulting in a doubling of onboarded customers and a 37% reduction in app uninstalls.
MoEngage scripts the mobile banking success story
MoEngage has been instrumental in solving the tough challenges these banks and financial institutions face every day. Banks must reimagine how they:
- Drive digital product adoption across websites and mobile apps
- Onboard customers quickly and seamlessly
- Engage consumers with the right marketing campaigns
- Reactivate lost and dormant customers
- Reduce impact on the marketing budget
The solution lies in MoEngage’s powerful ability to create orchestrated campaigns across multiple digital touchpoints such as emails, SMS messages, push notifications, and social media.
MoEngage strives to make customer obsession a core quality for the financial institutions we work with. We create and manage campaigns that delight end users and improve the performance of our banking customers’ marketing strategies. Picture one of your own end users receiving a customized offer from your bank while shopping at their favorite ecommerce outlet, or finding the best forex rates while traveling abroad. These are some of the MoEngage-enabled use cases that can help delight your users and nudge them to becoming a loyal patron of your brand.
Learn more about MoEngage
Why should MoEngage be the engine that drives your bank’s marketing arsenal?
- We provide a single powerful platform for your engagement and analytics needs.
- We integrate seamlessly with your existing portfolio of digital tools.
- We were built for scale and rapid digital transformation.
- We value compliance above all else and adhere to regional and global regulations.
- We know our way: Having worked with multiple brands in the industry, we know the pain points and challenges you face, and can support you in your customer journey.
TrueLayer launches new verification API
TrueLayer, the leading, London-based open banking solution fintech, has announced the launch of its new Open Banking API verification solution.
According to reports, the technology combines open banking with machine learning (ML) to make the onboarding process seamless and fast.
Fast processing in Open Banking
Results show its success rate is currently 20% higher than credit bureaus because it generates reports in seconds rather than the traditional manual, bank statement checks that can take days to complete.
TrueLayer also says the technology simplifies the payment setup and transactions by pre-verifying customer’s details.
Another advantage is that existing providers have access to raw data that requires businesses to build and maintain their own logic to verify that the customer’s name matches their name on file at the bank.
The verification logic sits on top of open banking rails and matches the name given via the onboarding, along with the name held at the bank. It, therefore, offers a single feed that provides an immediate and highly accurate response regarding whether their user’s account has been verified.
Open Banking in the UK
Open Banking has seen a surge in popularity since March 2020. Data shows that the technology is being used 12-fold more than it was two years ago. Banks in the UK are now handling more open banking payments volume in a single month than the amounts measured in the whole of 2019.
TrueLayer says many of its clients are using the Verification API, including Authologic, a Y Combinator-backed provider of identity verification solutions.
Ossama Soliman, Chief Product Officer at TrueLayer, said the verification breakthrough makes a huge difference to both businesses and customers because verification is the first step to onboarding a new user and yet it can often take days to verify an account owner using traditional methods.
He explained, “Their security is questionable, they’re prone to errors and they take forever. It doesn’t need to be that way. With the verification API, we’ve built on top of open banking to create a faster, more secure, and more accurate approach to verifying a user’s account. It serves businesses across multiple industries, including financial services, PSPs, wealth management and trading, marketplaces, property, and iGaming.”
Speaking about the new technology, Jarek Sygitowicz, co-founder of Authologic explained, “Whether you are a fintech, a marketplace, or an ecommerce platform you want to deliver the best possible onboarding experience.
He added; “We are aggregating different identity verification methods and we are big supporters of using open banking thanks to its ability to make the entire process more intuitive.”
The TrueLayer verification API delivers:
• A faster onboarding process, cutting time from three days to three clicks.
• The API coverage spans all major banks, resulting in a 22.5% higher success rate compared to other credit check methods.
• Prevents fraud through its embedded strong customer authentication (SCA) within the bank verification process.
• Offers a better user experience for customers using biometric technology to confirm identity and ownership.
• Lowers payment failures through its pre-verified account details.
• Lowers burden on compliance teams through automated verification via a single API call.
• Lowers maintenance issues because engineers can focus on solving core business problems, rather than building and maintaining name-check logic.
Image credit: TrueLayer offices from TrueLayer