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Mobile Banking in 2024: Trends, Features and What's Missing

Michal Maliarov
8
min read

According to the German Mobile Banking App Review 2024, 60% of German consumers prefer using their banking app to manage their finances, with nearly one in three sending money via the app at least once a month. This shift towards digital solutions highlights the increasing trust and dependency on mobile banking, driven by both convenience and necessity. So, what are the most popular features that are available to users, and how is the digital market following trends?

Personalised Data is the New Black

One of the most significant trends shaping the industry in 2024 is much heavier use of advanced Personal Finance Management (PFM) tools. These features have moved from being mere add-ons to essential components of mobile banking apps. PFM tools offer personalised financial advice, detailed budget tracking, and intelligent spending categorisation. It's especially noticeable how much the enrichment from providers like TapiX is affecting the final data, which becomes much more accurate. Millennials and Gen Z, who prioritize financial literacy and proactive management of their finances, are the primary drivers behind the popularity of these features.

Did you know? According to a report by Statista, the number of mobile banking users worldwide is expected to reach 3.6 billion by the end of 2024, a significant increase from 2.7 billion in 2020.

With more control over the finances also comes deeper personalisation and customization of the entire banking experience. Today's users expect their banking app to cater to their unique preferences and financial needs, with contextual banking that follows your life journey and changing needs, being at the forefront. Customizable interfaces, personalised notifications, and tailored financial insights make it easier for users to set and follow their financial goals.

Learn about 7 Digital Banking Trends to Look Out For in 2024

With a rising number of cyber threats, security and privacy enhancements are also becoming new, albeit more quiet trends in the industry. Users demand robust security measures to protect their financial data. Features like biometric authentication (fingerprint and face recognition)and real-time fraud alerts are no longer optional; they are expected. Revolut, for example, allows users to block payments based on the merchant, highlighting the critical role of accurate input data. Speaking of data, Germany leads European markets with a 64% trust rate in banks handling personal data, reflecting the high importance placed on security, especially by Gen X and Baby Boomers who prioritize security and simplicity over high personalisation and AI tools.

 Did you know? According to a 2023 report by Accenture, 78% of users feel more secure when using biometric authentication compared to traditional passwords.

Age group preferences

Understanding the distinct preferences of different age groups is essential for tailoring mobile banking services that meet the diverse needs of users. Each generation has unique expectations and follows different trends, influencing the design and functionality of financial platforms. Let's see what each age group expects from their banking apps.

Gen Z (18-24years)

- Top Features: Rich customisation, seamless third-party integration, AI-powered financial insights

- Usage Trends: Preferring digital wallet-only approach, fully digital payment ecosystem usage

Millennials (25-40 years)

- Top Features: PFM, Hyper-Personalisation, Progressive security features

- Usage Trends: Preferring using mobile banking apps to manage their finances, high adoption rate of digital banking solutions

Gen X (41-56years)

- Top Features:Security and Privacy, Detailed transaction data, Reliable customer support.

- Usage Trends: Preferring trust and security of traditional banks, secure and reliable app features are crucial

Baby Boomers (57-75 years)

- Top Features: Easy navigation, Offline functionality, Basic banking services.

- Usage Trends: Appreciates user-friendly interfaces and secure, straightforward features.

The State of Mobile Banking and What Can Be Improved

Despite these advancements, there are several areas where mobile banking can improve, particularly in terms of technical capabilities and transaction data enrichment. There are many basic functionalities and features that any banking app must have, but also many upgrades and differentiators possible to achieve. Let’s take a look at the basic functionalities and then dive deep into several key areas for improvement.

Feature Differentiation Scheme (source: Mobiquity: Digital Banking Features Radar)

Advanced Transaction Data Enrichment

Most banking apps provide basic transaction details, such as date, amount, and merchant name. However, this data is often incomplete or inaccurately categorized, which can have a negative impact on everything that is built on top of that data. According to the Dutch neobank bunq, over 50% of mobile banking app users claim a need for a better overview of their finances, while 25% admit to having a hard time controlling their spending. Platforms like TapiX offer advanced transaction data enrichment, transforming raw data into valuable insights.

This includes:

- Detailed Information: Accurate merchant names, logos, and contact details.

- Categorization: Automatic sorting of transactions into categories such as groceries, dining, and utilities.

- Tagging: Adding custom tags to transactions for better tracking and organization.

- Contextual Enrichment: Providing contextual information, such as recurring payment patterns and spending trends.

Broader Integration with Third-PartyServices

While some apps integrate with external services, as we discussed earlier, the scope is often limited and highly focused on just a few core functions.

Potential Improvements:

- Open Banking Integration: More comprehensive integration with open banking APIs can allow users to manage accounts from multiple banks within a single app.

- Payment Gateways: Seamless integration with various payment platforms can simplify online and in-store purchases.

- Smart Assistants: The AI assistants are slowly becoming an integral part of mobile banking, perfect for automating routine tasks.

Offline Functionality

While keeping your mobile banking in a constant online state makes sense, there are many benefits to adding a few offline features to give users even more control over the information they receive.

Potential Improvements:

- Offline Access: Allowing users to view recent transactions and balances without an internet connection.

- Offline Notifications: Storing notifications locally and pushing them when the user is back online.

Better Security Features

As with AI advancements, security features are becoming more robust, offering biometric protection, extensive authorisation and other protective measures. However, these can be further improved with more accurate transaction data and AI integration:

- Advanced Biometric Authentication: Using voice recognition or advanced facial recognition for additional security layers.

- Real-Time Fraud Alerts: Instant alerts for suspicious activities, with the ability to freeze accounts immediately.

- Enhanced Privacy Controls: Giving users more control over their data, such as deciding what information third parties can access.

What People Want

The demand for mobile banking features varies depending on different age and social groups and there are definitely specific features a lot of people seem to be asking for. We explored the needs of banking app users and found answers on Reddit. Here are some features users want to see in their banking apps the most.

- Automatic Recurring Payments: The ability to set up and manage recurring payments easily.

- RunningBalance Column: A more informative dashboard that helps users keep track of their spending.

- Simple Design: A clean, user-friendly interface is crucial for all age groups.

- Purchase Alerts: Real-time notifications for all transactions.

- Proper Transaction Categorisation: Transaction overview that provides detailed information on the purchase.

- Zero BalancePayments: The ability to pay off credit card balances completely with a single click.

- Rewards Tracking: Showing rewards earned from each transaction.

- Granular Notification Controls: Allowing users to customise which alerts they receive.

- Toggle Security Options: Easy access to turn security features on and off as needed.

- Digital account opening: Ability to open and create a bank account without the need for leaving the mobile app environment. 

Mobile banking has made significant progress, but there is still potential for further enhancement. Advanced transaction data enrichment, better integration with third-party services, offline functionality, improved security features, and catering to specific user needs can drive the next wave of innovation. And as always, data is at the center.  

About author

Michal Maliarov

Senior insider

A creative enthusiast who has spent half of his life in the technology industry. Passionate about fintech, AI, and the mobile tech market. Navigating the thin line between the worlds of media and advertising for over 10 years, where he feels most at home.

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