Mobile transactions have brought a revolution in Kenya. A paper from 2016 indicates that mobile transfer has lifted 194000 households out of poverty. More accessible money allows for families to send money back to their families. Not only is the money safer to transfer, but families are less likely to be left starving because of mobile money transfers. 

An estimate of a potential market for banks in Sub-Saharan Africa is around $500 billion. 

Mobile transactions have allowed families to save money, helped liberate them from being victims of crime, and allowed them to take more risks. A 2019 study has also indicated that remittances and self-employments have also increased due to mobile transactions.

Mobile money also allows for better health care. Having the disposal of money enables them to reach medical treatments and urgent situations. Easier access also allows them to reach their relatives in an emergency. 

M-Pesa has been a life-saver in Kenya, and although it hasn’t had the same impact in the rest of Africa, there are benefits that are still quantifiable. There are 42 million active customers and 400,000 agents across the world for M-Pesa. 

The success of M-Pesa can be attributed to the lacklustre performance of commercial banks. Not having access to banks has allowed the M-Pesa to capitalise and bring the people out of poverty. 

But where to go after Mobile Transactions,

This breakaway from cash-based transactions has managed to transform the landscape of the African economy. But, this must not be the end. Africa cannot afford stagnation. They must find ways to build on top of this achievement. 

Here are some ways that mobile banking can be improved: 

Personalised Experience

Targeted offerings are expected by customers these days. The use of data can help make predictions about how consumers are interacting with the app and use analytics to offer better experiences to the consumer. Every person has a different need as a person approaching retirement will have dissimilar interests to a person who is about to graduate. Leveraging personalised experiences will help improve engagement and customer experience.

Simplified Methods

A survey has resulted in the finding that millennials find it more difficult to figure out complex products of banking. This is evident from the fact that they are calling for help 1.7 times more than people aged 15 years or more. Simplified products will help increase more customers on the younger side. 

Making use of natural language can also help customers. Usually, banking apps that have a higher rating are ones that allow the customer to look for transactions using common language and filters.

Banking processes are quite complex and have detailed intricacies. For example, a loan approval seems like a simple transaction to the client, but in reality, it has to move from different departments and interfaces. 

Customers demand a smooth flow of transactions and data throughout all of their accounts. Mobile apps offer opportunities such as digital wallets and easy availability of information regarding customers’ assets and liabilities, all in one place. 

Apps should allow all the accounts to sync into one place and get a superior understanding of their spending and also allow for broader money transfers. 

The best feature of mobile banking is the ability to maneuver payments across the board. Allowing for transfer in more channels might be the next thing to consider. Using social media IDs to transfer to new payees could change the landscape of mobile banking. 

Even though there has been a long period of inaction in the growth of mobile banking, it is still far ahead in satisfying customers than retail banks. 

Publicising demonstrations of methods of completing transactions can also help for the easier adoption of mobile banking.  Exhibitions of advanced features, incentives, and their methods are also a very good way for marketing and for driving better adoption. 

AI-driven mobile banking

A very big reason for the success of mobile banking has been the possibility of customsation. Mobile apps offer client-specific information, data usage patterns and allow for related services, benefits, and offerings. 

Mobile banking services around the world have been using Artificial Intelligence, Predictive Analytics, and Machine Learning to provide fancy features such as consumption analysis, bill reminders, and recommendations on how to save money, and how to manage balances of credit, and, recently, investment opportunities. 

Better-timed offers can help mobile banking gain 25 to 51 percent more secondary products from banks. Predictive analytics and Artificial Intelligence can help with personalisation within apps while also taking into account the financial history and behaviour of the customer. 

More Secure Process

Hackers and security breaches are at an all-time high these days. This makes the need for better authentication, security settings, and monitoring crucial. Touch IDs and Biometrics are the answer to this problem. 

Having an alert feature will allow customers to manage security and finances in real-time. Having alert capabilities will help banks to reach their customers wherever they are with instant alerts. This will allow for protection against fraud and will safeguard their banking activity. 

Also, having alerts on spending above a certain amount will allow customers to have a deep look on their spending habits. 

Seamlessness

Traditional banking is unpopular because of its “Traditional” aspects, such as waiting in queues and going for a long drive to get to a branch. Phone calls are also getting out of favour with today’s customers. 

Giving the customer the ease to manage their own accounts and handle their transaction on their own without having to approach a  company representative will help them be independent, exhibit cutting-edge technology, and add comfort to their lives. 

Better customer service and communication

It is past time that banks move away from click-to-dial. This method is frustrating and time-consuming for customers who want to troubleshoot issues. 

Live chats are the way forward to achieve better customer service. Adding the Tap, Talk, Done feature will help app users to specify the nature of their call and then receive direct communication with a specialised operator. It should be the top priority for institutions to resolve issues in-channel for the consumer. 

Customer service tools can also enhance customer loyalty. Even though having a live human is well enough, mobile banking apps can experiment with conversational AI assistants. This will allow customers to have better relationships with their banking apps and, thus, in turn, boost retention rates. 

In-app financial management capabilities

Outside the app, budgeting is often subjected to adverts and cross-sellings, which sways the customer away from the app. This is a very lucrative opportunity for banks, and ones that are not offering this service are missing out. Mobile banking should have budgeting, financial goal making, transaction categorisation, and management of finances within the websites and mobile apps.

Personalised Insights

This feature of mobile banking encourages users to cut spending and increase their savings. The ability to set spending limits and view recurring costs can help customers identify potential leakages in their overall financial health. 

Lesser Friction Points

Mobile banking apps need to be developed while having a user-focused mindset. This will help eliminate friction points within the overall customer experience. This actually makes economic sense, along with providing convenience for customers. Allowing tasks to be done in a modern way without making the customer travel to a branch location or troubling them for a call makes the lives of your customer easier. It also helps reduce operational costs. 

Features like Mobile bill payments are part of the success of removing friction points, but there is still room for improvement in this area. Customer experience can be enhanced by adding special promotions, biometric log-ins, digital wallets, and the ability to deactivate accounts when exposed or vulnerable. Not only new features should be added but the features already available must be enhanced too. 

Prospects for growth In Africa

Kenya and Ghana are next-in-line to China in terms of overall mobile financial services market penetration. Kenya and Ghana have 87% and 82% of GDP, respectively, coming from transactions with mobile wallets and phones. 

These figures, though, are strong but are inconsistent across Africa. In most other countries in Africa, less than 50% of transactions take place through mobile payments. More than 400 million consumers partake in the flow of $300billion of cash transactions, generating $200 billion mobile banking fee charges, in Sub-Saharan Africa. 

By 2025, the market size of Africa will reach nearly 850 million customers. If this figure becomes a reality, the market transaction volume will rise from $3.5 trillion to about $25 to $30 trillion. This means $30 billion in yearly revenue. 

Mobile Banking after COVID,

Covid has changed the horizons of financial services and has allowed mobile banking to take charge at a time of need. Even before the pandemic, African consumers were already leaning towards their digital devices. COVID, however, has accelerated the process. Online Banking Usages have increased from 30 to 40 percent due to physical separations. Mckinsey’s survey reveals that after the pandemic, 30 to 40 percent of consumers are going to increase the use of digital channels. Banking revenues are also falling between 23 and 33 percent, according to McKinsey. 

Covid-19 has increased people’s interest in contactless transactions. If banks don’t provide these services, tech-driven competitors will jump on board to provide these services from around the globe to capitalise on this opportunity.