In today’s dynamic financial landscape, banking apps have become necessary for effective money management. With increased cost of living pressures being front of mind for banking customers, it’s becoming increasingly clear that the key to customer retention is having a bank app that fuses seamless customer experience with useful tools to help customers manage their personal finances.
The Byte Sized Banking Report 2024 published by Moneythor and Experian reveals that as living costs continue to rise, customers are demanding more from their banking apps—seeking seamless user experiences and practical financial tools.
High Usage and Evolving Expectations
According to the report, over half of the users (57%) access their banking apps 3-10 times a week to manage budgets, track spending, and plan savings. This frequent usage highlights the critical role these apps play in daily financial management.
As living costs rise, the need for effective financial management becomes more pressing. Customers are seeking out apps that not only provide basic functionalities but also offer advanced tools and personalised experiences to help them navigate their financial journeys. The expectation is that these apps will serve as comprehensive financial hubs, offering everything from real-time notifications and personalised recommendations to budgeting suggestions and spending trend insights.
Key Features in Demand
Customers now expect more than basic functionalities. The report reveals that users are looking for:
- Real-time Notifications: 62% desire immediate updates on transactions. Instant alerts for every transaction provide users with a sense of security over their finances. These notifications help in monitoring account activities, identifying fraudulent transactions, and staying informed without needing to log into the app repeatedly.
- Savings Goals Management: 51% want tools for managing their savings. Users are looking for features that allow them to set specific savings goals, track their progress, and receive reminders to contribute towards these goals. Tools that offer visual progress indicators can enhance user engagement and help in achieving financial objectives.
- Personalised Recommendations: 58% prefer insights tailored to their spending habits. Personalisation is key in modern banking apps. By analysing user data, apps can provide customised advice on how to save money, optimise spending, and make better financial decisions. These insights can include spending alerts, tips on reducing unnecessary expenses, and suggestions for better financial products based on individual usage patterns.
- Budgeting Suggestions: 60% seek guidance on financial management. Effective budgeting tools are in high demand as users look to manage their finances more effectively. These tools can offer personalised budgeting tips, suggest spending limits based on income and past expenses, and provide feedback on spending behaviour. Integrating machine learning algorithms to predict future expenses and adjust budgets accordingly can further enhance user experience.
- Spending Trend Insights: 59% want detailed information about spending patterns. Users appreciate detailed breakdowns of their spending, categorised by type, time period, and merchant. Visual representations, such as charts and graphs, can help users understand their financial habits better. This feature allows users to identify areas where they can cut back and adjust their spending to align with their financial goals.
The Crucial Role of User Experience
User experience is pivotal for customer retention. The report revealed a substantial 80% of users aged 25-44 consider app quality a key factor in their decision to stay with or switch banks. This demographic represents a significant portion of the banking population, and their satisfaction with the digital experience can significantly impact a bank’s overall customer retention rates.
Conclusion
The Byte Sized Banking Report 2024 highlights the need for banks to integrate advanced financial tools and personalised insights into their apps. By doing so, banks can transform their apps into essential financial hubs and remain competitive in a rapidly evolving market.
For an in-depth look at the findings, explore the full report here.
