Increased demand for contactless payments and personal internet banking in Malaysia has resulted from pandemic-inspired closures, hastening the transition from cash to digital choices like mobile banking. In the Chase Digital Banking Attitudes Study, it was found that nearly all members of Generation Z and millennials (98%) utilize a mobile banking app to do a variety of banking-related functions, such as monitoring their account balances, credit scores, and depositing checks.
An estimated $1.82 billion will be generated by mobile banking worldwide by 2026. Artificial intelligence (AI), machine learning, big data, blockchain, etc. are just some of the cutting-edge technologies that banks and financial institutions are using as part of their strategy to remain competitive in today’s dynamic and unpredictable market.
Biometric Authentication
As we progress further into the COVID-19 era, the security concerns we face are changing and becoming more serious daily. The Federal Trade Commission reports that credit card theft rose by 104% from the first quarter of 2019 to the first quarter of 2020. Because of this, biometric authentication is becoming increasingly important in the realm of cyber security. To further protect private information and make it easier to follow banking rules, biometric authentication was developed. According to Juniper Research, biometrics will authenticate more than $3 trillion in payment transactions in 2025, and with mobile payments dominating the market, fingerprint, iris, voice, and facial recognition will be essential to providing engaging app experiences.
The elimination of the need to remember and manually fill in account credentials is just one of the many benefits of biometric security, which also serves to prevent unauthorized access to accounts. A recent survey found that 56% of consumers had faith in biometric technologies to validate their transactions, suggesting that in the near future, biometrics will replace bank cards’ Personal Identification Numbers (PINs) and make them obsolete. Facial recognition, voice recognition, fingerprint scans, and iris scans are only a few examples of the essential aspects of biometric identity systems that are quickly becoming accepted as global security standards.
Withdrawing Cash Without a Card
People all over the world exhibited an increased interest in contactless payment during the pandemic because they wouldn’t have to touch surfaces while out and about. By completing most of the transactions through a mobile banking app, cardless cash withdrawal is a wonderful way to reduce the number of interactions required to take money from an ATM. After completing the bulk of the transaction via the app, such as inputting your PIN, withdrawal amount, etc., all you have to do is take the cash from the ATM. These developments are made possible by Near-Field Communication (NFC), a technology that enables devices to communicate and share data without the need for physical contact, and QR code scanning, which enables customers to engage with machines with minimal physical contact.
In addition, cardless cash withdrawal will improve the banking experience for customers. Customers can withdraw cash without their cards these days. In addition, customers can arrange their transactions in advance, cutting down on their trips to the ATM (goodbye, long lines!). This technology eliminates the need for a debit card during ATM transactions, which not only speeds up the process but also increases security and drastically minimizes the likelihood of card skimming, cloned cards, and other fraudulent activity.
Conclusion
The banking industry is undergoing a rapid digital transformation as a result of the widespread adoption of cutting-edge technologies. The financial sector’s major connection to its consumers will be through mobile devices. Customers will anticipate further development in the realm of online banking apps as smartphone manufacturers continue to release models with ever-more-specialized features. Those in the millennial and Gen Z generations, who rely heavily on their mobile banking apps, will find this extremely helpful. Banks and other financial institutions must keep up with customers’ expectations for the mobile banking experience or risk becoming obsolete as the world moves away from cash.