Banks and financial institutions have evolved over time to adapt to changing technologies and meet the dynamic needs of their customers. And since everything has become increasingly digital in this day and age—from purchasing stuff online to booking flights and more—they are working diligently to align themselves with the modern clientele’s predominantly technology-driven expectations. Fueling this financial revolution is none other than the burgeoning fintech industry that combines the best aspects of finance and technology to come up with sophisticated financial solutions, such as mobile banking, for the tech-savvy generation of consumers.
Mobile Banking: A Product of Digitalisation
When ATMs and credit cards were introduced into the banking world in the 1960s, they heralded a technological revolution that changed how consumers manage their finances. For decades, many thought this was already the peak of the finance industry. But when internet banking came into the picture in the 1990s, banking services became much more accessible, with customers conveniently doing financial transactions with just a few clicks on their desktop computers. However, the evolution of banking did not stop there.
The advent of digital banking was ushered in by the rapid advancements in mobile technology in the early 2000s. By the 2010s, mobile banking became a mainstay offering of banks and financial institutions as they started churning out mobile apps. Inevitably, everyone with a smartphone and internet connection was able to access their money and handle their finances with a few taps. In no time, mobile phones, banking apps, contactless cards, and text alerts have revolutionized banking across the globe, as they fulfill the customers’ needs for secure, efficient, reliable, and always-available access to their finances.
According to Statista, mobile banking has surged in popularity in the past decade, with a growing number of bank customers choosing it as their primary mode of access to their bank accounts. In the United States alone, 43.5% of banked households used mobile banking as their primary access mode in 2021. Younger households, in particular, demonstrated a higher propensity for mobile banking usage, with approximately 74.1% of households led by individuals aged 15 to 24 embracing mobile banking. As such, digitalisation has propelled mobile banking into the mainstream not only in the US but all over the world.
Mobile Banking vs. Online Banking
While online banking brought unprecedented convenience to financial transactions, the arrival of mobile banking made a much bigger impact since the newer technology was warmly welcomed by modern, always-on-the-go digital consumers. Between the two, mobile banking has the upper hand. For one, online banking only allows users to manage a plethora of financial and non-financial transactions through their computers or laptops. On the other hand, mobile banking takes this convenience a step further by allowing users to conduct banking transactions anywhere and anytime directly from their smartphones, tablets, and other supported devices.
Listed below are three aspects that further differentiate online banking and mobile banking:
Functionality: The primary distinction lies in functionality. Internet banking facilitates online transactions through a PC or laptop and an internet connection. In contrast, mobile banking can be conducted with or without internet access. Many banks now offer mobile apps for banking, but mobile banking through SMS is also an option, enabling basic transactions even with non-smartphones.
Transaction Facilities: Online banking typically offers a broader range of transaction facilities, from checking account statements to opening new accounts. Mobile banking, especially when not using a bank’s mobile app, may offer fewer features, though modern bank apps now provide extensive functionalities like fund transfers and account statement checks.
Access: Online banking portals can be accessed through any browser on a computer or laptop, requiring no specific software. Mobile banking apps, on the other hand, typically offer more features but necessitate downloading the bank’s app from the appropriate platform.
Despite their differences, both online and mobile banking offer convenient, secure, and time-saving digital banking services.
Mobile Banking vs. Traditional Banking
With the ubiquity of mobile devices like smartphones and tablets, mobile banking has become a simpler way for consumers to manage their financial accounts. Online banks and fintech companies offer mobile banking applications to meet the needs of modern consumers seeking convenience. Some traditional banks have also started to adapt to the trends and released their own mobile applications. However, their apps tend to have limited functionality. On the other hand, the mobile apps of fintech companies are well-equipped with not just standard banking services, but also crypto support, encryption technology, and advanced machine learning capabilities.
The biggest advantages of mobile banking over traditional banking include time-saving convenience and accessibility from anywhere with an internet connection. Tasks such as bill payments, fund transfers, and deposits can be effortlessly completed using a mobile device. However, technical issues may occasionally arise with mobile banking apps, and not all apps offer the same functionality, as per Time.
Black Banx
Mobile banking has transitioned from a convenience to a necessity in today’s digital world, with smartphones and other smart devices facilitating seamless financial management. In this competitive landscape, Black Banx distinguishes itself through innovation, inclusivity, and technological prowess. Founded by German billionaire Michael Gastauer, Black Banx embodies the future of mobile banking, offering a comprehensive suite of services tailored to meet the diverse needs of global clients.
Black Banx’s borderless approach enables secure transaction processing across geographical boundaries, fostering global market participation. Since its launch in 2015, the digital bank has provided access to its platform to consumers from at least 180 countries and territories around the world. Its forward-thinking stance on cryptocurrency has also enabled its clients to accept, send, and even trade cryptocurrencies within its mobile application.
Black Banx’s Impressive Performance as a Digital Bank
Black Banx had a record-breaking performance in 2023, reporting significant growth and revenue. The digital bank closed the year with 39 million clients across the globe, marking a 21% increase in new clients over the previous quarter and a remarkable 95% increase over 2022. It generated $2.3 billion in revenue and an annual pre-tax profit of $289 million.
Overall, Black Banx epitomizes the future of banking, with its borderless platform, emphasis on digitisation, and innovative customer service approach. With this, Gastauer’s fintech brand stands as a beacon of innovation, redefining the mobile banking experience for customers worldwide and setting a standard for other fintech firms.
