The impact of technology on mobile banking is driving the entire fintech sector. With the rapid advancement of technology and easy access to mobile devices equipped with constant wireless connectivity to high-speed mobile networks in 4G LTE or 5G technology, the way consumers use banking has evolved significantly. Poland is one of the best developed countries in terms of the use of new technologies in the banking sector. Polish fintech sets an example for the rest of Europe and the United States, where the popular contactless payment systems Google Pay and Apple Pay have still not managed to spread to the same level as in our country. What does Polish mobile banking look like in 2023 and what are the trends in mobile finance?
Mobile banking in 2023: Where are we and where are we headed?
As many as 20.2 million users in Poland actively use mobile applications, according to data summarizing 2022 in mobile banking provided by the Polish Bank Association in its NetB@nk survey for Q1 2023. There are 22.8 million users accessing online banking via web portals. They use this channel at least once a month – most often to make transfers of significant value and pay bills.
Importantly, the Polish mobile banking sector is growing very strongly in the business sector. Small and medium-sized businesses are eager to use mobile applications – as many as 2.4 million SME customers have an active online banking application.
In Q1 2023, there were more than 42 million active banking contracts in Poland that allow mobile banking. This means that statistically every Pole has more than one banking product (account, deposit, investment, etc.) allowing the use of the mobile application of the banking entity offering the product. The number of active users of mobile applications available for Android and iOS mobile devices in Q1 2023 exceeded 20 million users.
It is worth noting that mobile banking is the fastest-growing channel for accessing banking – it is currently (first half of 2023) recording a 4% increase in the number of active users quarter-on-quarter.
The use of the mobile app is also extremely important. More than 13.5 million mobile app users in Poland do not use other channels to access the bank, or do so very rarely. The mobile app is an additional channel of access to the bank for only 6.5 million users.
The above figures illustrate how technologically advanced Polish fintech is and how much confidence Polish consumers have in modern banking products that allow them to manage their products quickly and freely.
Overview of 2023: major changes in the world of mobile banking.
Banking apps are some of the most powerful programs that are installed on mobile devices, and innovations in mobile banking are extremely spectacular. These are very high-tech solutions that must not only be innovative, modern, reliable and convenient to use, but also extremely secure.
Banking apps are constantly evolving. They are the most advanced programs installed on smartphones. They allow us to manage our assets, investments and insurance. Therefore, they must be very secure, modern and convenient to use. Currently, the most important developments in mobile banking are the integration of biometrics for identity confirmation, personalization of users’ spending and digital wallet management.
The largest banks are constantly outdoing themselves in providing more and more new features in their solutions to make it easier for customers to use banking products on a daily basis. Some of the most popular trends in 2023 include:
Integration of banking apps with biometrics – with the release of APIs by Google and Apple, companies developing banking apps are integrating their solutions with biometric data stored in the device’s memory. This solution allows you to quickly and securely access your mobile app without having to enter tedious passwords
Mobile payments and digital wallets – Android Pay (now Google Pay) and Apple Pay are almost 10 years old. These are the most popular current methods of contactless payments via NFC using mobile devices – smartphones and smartwatches. However, it is worth noting that such systems are evolving all the time. In Poland, the proprietary BLIK contactless solution implemented in the largest banks in our country is gaining popularity.
Personalization and expense analysis – modern banking applications offer expense analysis tools that help customers track their finances, categorize transactions and better manage their budgets. With these tools, you can better understand what you spend your money on and make more informed financial decisions. The whole thing uses artificial intelligence and machine learning, and the processing is done locally on the customer’s device.
The security of the banking apps that allow you to access your bank is critical. Each mobile banking app has a number of security features that minimize the risk of data theft or interception of 2FA/MFA codes. Along with the security algorithms provided by the bank, consumers should ensure that they have a device that receives the current Android security patches or Apple’s iOS system updates.
The biggest challenge is securing mobile apps on outdated devices that are still in circulation all the time. In the case of Android smartphones, most lower-priced smartphones do not regularly receive security and operating system patches. The significant fragmentation of the system makes it difficult to secure mobile applications on such devices.
Fortunately, the Polish fintech sector has been effective in securing mobile applications. Standards include:
- Data encryption
- Authorization and multi-factor authentication – SMS codes or confirmations in dedicated banking applications
- Regular updates of banking apps
- Conducting security audits
- Limiting the permissions of banking applications to the minimum necessary for proper functioning
- Conducting campaigns to make customers aware of threats such as phishing
- Developing modern, convenient channels of communication with customers
The last three years and the political and economic situation have caused quite a change in the fintech market. Users in Poland have become even more eager to use mobile banking. In 2023, the most important novelties and functionalities that are gaining importance include:
- Contacting the bank via solutions available in mobile apps – customers are increasingly choosing direct connection with a consultant, conversation with a chatbot, or even conversation in embedded text messengers instead of a classic call to the bank’s hotline.
- Virtual advisors – with the large-scale availability of neural processors and artificial intelligence, banking applications have received virtual advisors. Modern mobile banking programs advise customers on how to invest their cash, watch out for unexpected expenses, and categorize the inflows and outflows of money in given accounts.
- New security features – customers are very eager to adopt more security features, which are critical in the development of new technologies in the fintech sector. These include real-time notifications, confirmation of operations via biometrics or automatic change of limits on payment cards.
- Integration with government services and smart cities – modern banking applications allow users to access e-government and apply for, for example, 500+, pay for parking lots, buy public transportation tickets or pay for highways, thus becoming universal applications to facilitate daily life.
Mobile banking in the context of the global economy: impact on trade and investment
Mobile banking has had a profound impact on the global economy, including trade and investment. The introduction of banking apps on mobile devices has transformed the way consumers manage their finances, make payments and make investment decisions.
Banking apps allow users to perform financial transactions in real time, regardless of their location. Mobile banking also facilitates international payments through a variety of methods, such as contactless payments and digital wallets.
Banking apps often offer tools for investing in different markets and assets. This allows investors from all over the world to easily manage their investment portfolios and participate in global financial markets.
The impact of banking apps on the level of public awareness should not be overlooked either. Banking apps often provide tools for analyzing markets and economic trends. This allows users to better understand what factors are affecting the global economy and make more informed investment decisions.
Blockchain and cryptocurrencies are a natural evolution of the financial market and have a major impact on mobile apps. They bring innovative solutions to financial mobile applications, improving the security, speed and accessibility of financial transactions.
With blockchain technology, mobile banking has become even more secure. Blockchain technology provides a secure and unalterable way to store transaction data, which is of great importance for financial mobile applications, as it enables verification of the authenticity of transactions and minimizes the risk of fraud. Blockchain allows transactions to take place in real time and with fewer fees, which translates into greater efficiency for financial mobile applications.
User Experience (UX) in banking apps: how are banks adapting to users’ needs?
Modern banks are well aware of the need to constantly improve their mobile apps. After all, mobile banking without good UX will not win the favor of users.
Conducting UX studies allows to tailor services and interfaces of mobile applications to the needs of customers allowing them to access the most important functions in the fastest and most intuitive way for them.
The latest versions of the banking apps of major financial players provide an intuitive user interface with free customization with high performance and scalability. The whole works together, of course, with the latest security features while ensuring that they are not a nuisance during daily work with the application.
Mobile banking and the development of 5G technology: what benefits does the new generation of networks bring?
Mobile banking is very much linked to the development of the mobile network. The implementation of the 5G network significantly affects banking applications. In Poland, the 5G network has been operational since mid-2020. Over the past three years, a host of devices have appeared on the market to take advantage of the new opportunities brought by the 5G network.
These include:
- Higher performance
- Lower latency
- Higher network capacity
- Resistance to interference
- Increased levels of security
- Native support for AR, VR, AI and the Internet of Things (IoT)
- The aforementioned advantages allow building comprehensive mobile banking applications that open up new opportunities for the entire fintech sector and enable the delivery of more advanced financial services.
Integration of mobile banking with other systems: fintech and non-bank payment platforms
Fintech and non-bank financial platforms integrate very well with mobile banking, as the whole is based on the latest technologies and offers customers a wide range of functions available from a single application that is a hub for accessing all kinds of financial services from account management, investments, deposits, savings, to services connected to, for example, smart cities, electronic office or health care.
The future of mobile banking: forecasts and expectations for the next few years.
The future of mobile banking seems promising, with many forecasts and expectations pointing to further dynamic development of the sector in the coming years. Key forecasts and trends for the development of mobile banking include:
- Steady growth in the popularity of mobile applications
- Further expansion of their functionality
- Increasingly better integration of banking applications with biometrics, artificial intelligence and machine learning
- Personalization of mobile banking for specific consumer requirements
- Emphasis on financial education
- Integration with peripheral services such as insurance
- Adaptation to changing behavioral trends
- Development of new channels of communication with the customer
- Using the technical capabilities of augmented reality (AR) and virtual reality (VR), e.g., to visualize the purpose of using the money raised from a loan or investment.
FAQ Questions:
What are the main benefits of using mobile banking in 2023?
There are many benefits of using mobile banking in 2023. Among the most important are convenient access to the bank 24/7 from anywhere in the world, the ability to perform fast transactions, use contactless payments and monitor spending with the support of artificial intelligence. Not insignificant is security at the highest level and the ability to conveniently manage all banking products from one place.
Are banking apps more secure now than in previous years?
Yes – mobile apps are currently the safest channel for accessing banking. Financial institutions and app developers are aware of the growing threats of cybercrime and fraud, so they are taking steps to increase the security of their mobile platforms. Mobile banking uses the most advanced types of data encryption, biometrics for login, and complies with the latest data protection regulations (RODO) and recommendations from the FSA.
What innovations can be expected in the mobile banking sector in the near future?
Numerous innovations can be expected in the mobile banking sector, which will continue to transform the way people manage their finances. These include:
- Augmented reality (AR) and virtual reality (VR)
- Further development of the use of cryptocurrencies and blockchain
- Better data analysis
- Personalization at an even higher level
- Expanded integration with the fintech sector
- Development of financial education
