How can mobile and online payment platforms improve banking relationships?

Mobile and online payment platforms are transforming the way consumers and businesses manage their finances. They offer convenience, speed, security, and flexibility for transactions across borders and devices. But how can they also improve banking relationships? In this article, we explore some of the benefits and challenges of using mobile and online payment platforms, and how they can enhance customer loyalty, satisfaction, and retention for banks.

1 The benefits of mobile and online payment platforms

Mobile and online payment platforms enable customers to access their accounts, send and receive money, pay bills, and shop online anytime, anywhere. They also reduce the need for cash, checks, and cards, which can lower transaction costs, fraud risks, and environmental impacts. For banks, mobile and online payment platforms can increase customer engagement, loyalty, and trust, as well as generate new revenue streams, data insights, and cross-selling opportunities.

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Parag Shah

Principal Consultant
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In my experience and observations, the FI’s make major investments in the mobile solutions. However, different demographics have different needs, it would be ideal to seek solutions and app interfaces suited to the needs of these demographics. Do banks have a real understanding of their customers behaviour and needs?. Perhaps the customer “centricity” should be considered with data insight and advance the mobile agenda.

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2 The challenges of mobile and online payment platforms

However, mobile and online payment platforms also pose some challenges for banks. They face competition from fintech startups, e-commerce giants, and telecom providers that offer alternative payment solutions. They also have to comply with complex and evolving regulations, security standards, and customer expectations in different markets and jurisdictions. Moreover, they have to invest in technology, infrastructure, and talent to deliver seamless, reliable, and innovative payment services.

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Parag Shah

Principal Consultant
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In order to compete all stakeholders have to make the right call in terms of investments and time to market. For far too long regulators have focused on FI’s and minimised competition from new entrants and regional variations for regulatory demands vary. For the future it is essential the needs of the customers are recognised and the various stakeholders e.g. FI’s, telcos, retailers and other stakeholders collaborate to advance the digital agenda. The business case for each party needs to stack up and maintain the momentum towards a common goal.

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3 How to improve banking relationships with mobile and online payment platforms

To improve banking relationships with mobile and online payment platforms, banks need to adopt a customer-centric approach that focuses on solving problems, adding value, and creating convenience. This can be achieved by providing personalized and tailored payment options to different customer segments, offering rewards and incentives to encourage customers to use mobile and online payment platforms more often, integrating mobile and online payment platforms with other banking products and services, leveraging data analytics and artificial intelligence for enhanced customer experience, security, and loyalty, as well as collaborating with other payment providers and partners to expand payment networks.

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Parag Shah

Principal Consultant
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I agree, data insight and AI will play huge role for the near future. Bespoke solutions and access for digital enabling will advance and stakeholders will find way to deliver more customer centric propositions in B2C and B2B customers. Adoption of such solutions will also be governed by relevant legal and regulatory frameworks to ensure protection of data and access is overseen and controlled. Some markets will advance more than others. In Europe this will be complex seeing we still see fragmentation even with aspects like open banking and PSD2/3. The energy and investments are high and so are the demands of the various stakeholders in delivery of the eco system.

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4 The future of mobile and online payment platforms

Mobile and online payment platforms are constantly innovating to keep up with customer and regulatory demands. Digital wallets, cryptocurrencies, and blockchain-based payment systems are becoming more popular due to their transparency, efficiency, and control over transactions. Additionally, biometric, voice, and facial recognition technologies are being adopted to enhance security and convenience. Smart devices, wearables, and the Internet of Things are also emerging to provide more contextual, interactive, and integrated payment experiences. Finally, social media, messaging, and gaming platforms are enabling more social, fun, and engaging payment interactions.

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Parag Shah

Principal Consultant
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I agree, but can imagine the need for standardisation an delivery of cohesive solutions to advance the agenda for e-payments. The trends after covid and moved towards e-payments, but uptake in some markets is still slow and there needs to be solutions that also have space for cash payments. Again, regulators have an essential role to play as do the banks and FI’s that engage with the customers. Informing and educating the customers is key, perhaps learning from other markets and reapplying these to individual markets may influence the development of digital solutions.

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5 How to stay ahead of the curve

To stay ahead of the curve, banks need to embrace mobile and online payment platforms as a strategic opportunity to enhance their value proposition, differentiation, and competitiveness. They also need to monitor the market trends, customer feedback, and best practices, and continuously innovate and improve their payment offerings. By doing so, they can not only improve their banking relationships, but also create more loyal, satisfied, and retained customers.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can mobile and online payment platforms improve banking relationships?

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1 The benefits of mobile and online payment platforms

2 The challenges of mobile and online payment platforms

3 How to improve banking relationships with mobile and online payment platforms

4 The future of mobile and online payment platforms

5 How to stay ahead of the curve

6 Here’s what else to consider

Financial Services

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