In the late 1900s, barely anyone had a mobile phone. Since then, we have not only entered into a new century, but have also entered a new age – the age of the mobile phone. Statisticians have noticed a steady growth in mobile phone users, forecasting the number to reach 4.77 billion in 2017.  On top of that, 80% of internet users own a smartphone. Of course, these statistics influence the banking industry tremendously.
The Change in the Banking Industry
Many traditional banks have already entered the 21st century, providing mobile apps and online banking to their customers. Those mobile solutions are making banks easily accessible to consumers who can check a balance or make a transaction in real time. It is a convenience that helps consumers handle their finances without entering a financial institution. In addition, mobile solutions means an easier access to banking services for the underbanked in the world – the importance of living close to a bank is no longer there. Finally, banks have become more personal, allowing customers to alter the type of services based on the individual. “A shift from transaction to interaction” is being noticed as more and more convenient features to help consumers have entered the market. The force that keeps pushing banks towards innovation is Fintech – simply the fact that there exists an industry that has made banking so much easier and now is a competition for traditional banks.
Fintechs with Apps
With the growth in mobile phone usage come growth in mobile phone applications. Fintechs have aggressively entered the market and are focused on developing a fast and customer-friendly app to use. Investments are mirroring the process – for the first five months of 2015, $1.1 billion were raised across 58 financings. FinLeap’s ventures are no exception to the trend. Clark, our insurance venture, developed an app that takes 2 minutes to register and find an insurance. With top consultants and recommendations, Clark allows customers to find the best-suited insurance for their personal needs through a phone.
Mobile First Banks
The mobile trend has taken its new step into the banking industry, introducing the world to Mobile First banks. Those banks are specifically designed for new age consumers and provide a boost in productivity through a digitally-driven process. Although a banking license is still difficult to get, Fintechs have proven able to do it. They offer specific products that are tailored the specific needs of customers. Thus, it competes with traditional banks without having to offer all the banking services. solarisBank is the perfect example. The tech company with a banking license provides a banking platform for the digital economy. Thus, the mobile phone revolution has not only caused banks to innovate, but also Fintechs to take the next step.