Mobile technologies have evolved from pure communication handsets to tools that consumers use for banking, payments, shopping, entertainment and socializing. Their increasingly widespread use and their prevalence are changing the way that consumers access financial services, the way they make payments and make financial decisions in general. Turkey is in a privileged position to embrace digital financial changes, given its large young population, with high mobile penetration and a healthy financial sector, which has been at the forefront of financial innovation by quickly changing from channel orientation to prioritizing the customer.
Banks who can’t offer immediate mobile accessibility for their banking customers are falling behind the competition. Operating multiple branches is very costly when compared to the overheads associated with mobile-only challenger banks. As the number of mobile-only users continues to increase, banks will need to provide a ‘unique’ banking experience with great UI/UX and solid functionality.
Turkey has a favorable environment for the adoption of new technologies and embracing digital changes. Turkey enjoys high mobile penetration and the number of Internet users is increasing over time although still below those in developed markets. The usage of smartphones is also picking up, use of online social media is also very popular, and e-commerce transactions continue to increase significantly. Therefore, the potential for e-banking and mobile banking is high, with customers receptive to enhanced customer experiences.
The Internet has changed the way we search for information and shop for products. Mobile technology has a far more wide-reaching impact, though, as in the developed world almost everyone has a mobile and in the developing world the usage of mobile is not only increasing quickly but it enables banks and businesses to reach rural and unbanked populations, accessing new customers. Increasing customer demands (they want things quickly, easily and right now) combined with ongoing competition from non-bank providers are driving the changes in the industry. For banks, mobile become most important channel for doing business, as it is essential to combine branch offerings with integrated digital services. Several Turkish banks have already changed their mind-sets, providing value-added services to ease daily banking actions with a customer-centric approach.
Causing the shift and switching of consumers in their droves to banks who provide a slick and intuitive mobile experience are ease of use, accessibility, mobile-only banks, switching to paperless, increased security.
As a conclusion, the banking and financial services’ sector are undergoing a significant transformation. One of the biggest drivers influencing this change is the deployment of new mobile technologies and innovations. Main key drivers are the rise of mobile-only banks, the availability of data driven money management tools, biometric authentications, fewer legal barriers to entry, the introduction of machine learning/AI and gamification into banking products, the ability for these services to create value for consumers. For banks already active in mobile app development this presents huge opportunities. For banks who have not yet developed a coherent mobile app development strategy, or for banks in the process of developing a strategy, there is now enormous pressure to develop mobile apps that can satisfy the very demanding banking consumers. Very often, the hardest piece of the puzzle for banks is working out how to develop the differentiating mobile apps that consumers demand.