For a lot of customers, mobile banking is no longer just a convenient fallback option to check balances and receive account alerts. They are increasingly expecting their banking applications to enable much more than the basics. The versatility of mobile banking services – which is tied to the mobile app – rather than just availability, is becoming a determining factor in customer choice as well as satisfaction.
Customers want mobile banking – that much is obvious. But banks need to ensure that their mobile strategies and offerings are in tune with these wants. Here, their IT architectures and delivery models are often a barrier. The world’s leading IT research and advisory firm cautions that banks’ IT applications, which are inflexible and reactive, are coming in their way of remaining relevant to customers.
Clearly, banks need an alternative approach, which is both flexible and proactive. One such approach is emerging in the form of the flexible API platform for mobile app development. This has the capability to create services based on need and tailored to customers’ context, location and technology.
Ask yourself how a bank would respond to a request from a small subsection of customers for an app to track medical expenditure. To get straight to the correct answer, consider the case of French bank Crédit Agricole (CA) – customers post the app idea on CA’s app store and third party developers work with the bank’s API platform to create the app. Capital One, on the other hand, is offering an API for merchant partners to deliver deals directly to their users.
API technologies allow banks to align the app needs of their customers to the capabilities of third-party developers to optimize the time, cost and effort of getting applications to market. Given the growth of mobile banking and the stringent demands of customers, API technologies will have to be a key part of any bank’s mobile development strategy. Starting right away.
Also read our blog on the cloud as a banking trends