Fintech on the Go: How Mobile Apps Are Disrupting the Financial Sector

Alright lemme ask you this –

When was the last time you actually visited a bank? 
If you’re having a hard time remembering it, you, my friend, are not alone.

In a time when virtually every aspect of life has migrated online, it’s only natural for banking to follow suit. 

The remarkable strides in technology have equipped mobile banking in Malaysia with robust security features and other important functions, ensuring a seamless banking experience.

Mobile finance apps cater to users of all backgrounds, making it straightforward for anyone to manage transactions effortlessly. Beyond mere convenience, these apps offer numerous advantages that have fundamentally shifted the dynamics of the financial sector.

That is exactly what we’re going to find out in this blog – 

What Is a Mobile Finance App?

At its core, a financial application is a piece of software designed for mobile devices, aimed at facilitating specific financial operations. Whether it’s monitoring your spending, transferring funds to loved ones, or verifying your bank account details, these applications have you covered.

The landscape of personal finance has been changed for good by a myriad of financial apps, each tailored to distinct financial needs. From tools that assist in saving more effectively, to budget management, debt reduction, and investment opportunities, there’s a vast array of options available. This diversity in financial applications is reflected in the fact that 63% of smartphone users have installed at least one financial app on their devices, a statistic highlighted by a Bankrate survey.

However, acquiring any financial app, including those offered by banks, requires a visit to a digital marketplace to download the desired application. This process underscores the integration of digital wallets in Malaysia into the fabric of daily financial management, showing their growing importance in the contemporary financial ecosystem.

How are Mobile Apps Disrupting the Financial Sector

Mobile Banking in Malaysia and globally has been a driving force in modernizing the financial sector. The shift towards paperless operations and expedited transactions signifies a major leap forward, all thanks to the adoption of mobile apps. 

This transition has been met with enthusiasm from consumers; a Mobile Banking Study revealed that 46% of U.S. consumers ramped up their use of mobile banking over the previous year. An overwhelming 91% of mobile banking users expressed a preference for app-based banking rather than visiting physical branches, and 68% of millennials even envisioned their smartphones as potential replacements for their physical wallets.

Originally evolving from SMS services, mobile banking has undergone significant evolution. Today’s devices are not only smarter, but mobile payments in Malaysia and elsewhere have also advanced, staying a step ahead with robust security measures and user-friendly designs. 

Cashless Payments

Digital Wallets in Malaysia and worldwide are bringing about a whole world of changes to financial transactions, reflecting a significant surge in cashless payments. 

The World Payments Report 2018 highlights this shift, noting that global non-cash transaction volumes experienced a growth rate of 10.1% in 2016, reaching 482.6 billion, with predictions of a 12.7% compound annual growth rate through to 2021. 

Moreover, the Peer-to-Peer (P2P) payment systems like PayPal have become popular, enabling users to transfer funds directly to one another via an application, simplifying money transactions significantly.

Open Banking

The advent of Open Banking represents a massive shift in financial services, with banks opening their APIs to third-party developers. This access not only to data but also to functionalities allows financial institutions to utilize existing systems more effectively, thereby offering customized services and products.

Financial Planning

Financial Planning, integrating comprehensive budgeting tools within mobile banking apps could offer a seamless all-in-one solution for users. Such integration can support better financial decisions, offering advice on budget management, savings growth, and investment improvements, potentially enhancing customer loyalty within the banking sector.

Chatbots 

The role of Chatbots in banking has become increasingly important, facilitating real-time resolution of customer inquiries. These AI-powered assistants not only offer pre-programmed responses to user queries but also utilize predictive analytics to aid in financial decision-making. As potential financial advisors to a limited extent, chatbots can guide users in budget management, savings, and expenditure control.

Security 

Advanced Security measures have become a critical focus for the banking industry in response to increasing cybersecurity threats. To tackle this, mobile banking apps are already incorporating biometric security features like facial recognition and fingerprint scanning, alongside traditional login procedures. There’s also ongoing experimentation with voice recognition security, highlighting the sector’s commitment to safeguarding user data.

Context-aware Notifications

Context-aware notifications are alerts that consider the user’s location and their activities to offer useful services. Context-aware notifications could bring a new level of personalization to the banking experience, though they pose challenges in balancing privacy and security for now. Successfully implemented, these notifications could mark a significant advancement in customer engagement and service personalization.

Examples of Some Top Finance Apps Today

1. Xero 

Xero stands out as a prime in the accounting software area, offering both desktop and mobile app functionality for Android and iOS users. This platform serves as a hub for your business finance needs, covering invoicing, inventory management, bank transactions, bill payments, and payroll through Gusto. Xero also promotes collaboration by allowing access for contractors and remote workers, ensuring everyone operates with real-time data. With over 800 third-party apps available, Xero’s ecosystem is adaptable to a wide range of business needs, embodying the flexibility and efficiency of mobile banking in Malaysia and beyond.

2. Cleo

Cleo is an innovative chatbot app that utilizes artificial intelligence to help users manage their finances with a conversational interface. It provides personalized financial advice, budgeting assistance, and expenditure tracking, all through simple text interactions. Cleo’s friendly and engaging tone makes financial management approachable and fun, catering especially to those new to personal finance.

3. FreshBooks 

FreshBooks, another top contender in mobile banking apps in Malaysia space, offers a web-based platform ensuring accessibility as long as there’s an internet connection. It provides easy invoicing, expense tracking, time tracking, and collaboration features, alongside double-entry accounting for precise and compliant financial records. FreshBooks adapts well to the burgeoning e-wallet trends in Malaysia, offering flexibility and efficiency for freelancers and small businesses.

4. Acorns

Acorns is an app that makes investing easy for beginners by automatically rounding up purchases and investing the spare change. It also offers educational content to help users understand investment basics. This app is great for those looking to start investing with small amounts, integrating the concept of micro-investments into daily life.

5. QuickBooks

Third in our list, QuickBooks is another incredible app in mobile accounting, compatible with numerous other applications. This app offers a plethora of features including income and expense tracking, invoice management, bank connections, payroll with penalty protection, inventory management, and time tracking. QuickBooks facilitates connection with an online bookkeeper, ensuring meticulous financial management, especially for small businesses. It also features a mobile card reader app, aligning with the convenience offered by digital wallets in Malaysia, making sales transactions possible anytime, anywhere.

6. Mint

Mint is a comprehensive financial tracking and management tool that aggregates all your financial accounts in one place. It offers features like budget creation, expense tracking, credit score monitoring, and customized financial insights. Mint’s ability to provide a holistic view of one’s financial status makes it a standout choice for those looking to get a grip on their personal finances.

7. Wave

Wave presents a unique proposition for small businesses seeking a cost-effective financial management solution. This app allows for unlimited income and expense tracking, collaboration, a double-entry system, bank connections, multi-business management, invoice creation in any currency, and receipt scanning—all for free. Wave’s inclusive features and no-cost model resonate with the principles of accessibility and affordability that define online banking in Malaysia.

8. Bill.com

Bill.com simplifies the intricate nature of business finance management, offering solutions for creating invoices, crediting customers, setting automatic payment reminders, and integrating with QuickBooks and FreshBooks. Available for both Android and iOS, Bill.com supports both account payables and receivables, facilitating seamless financial transactions. Its ability to integrate with almost every other app mentioned emphasizes its versatility in streamlining mobile payments in Malaysia, ensuring businesses can manage their finances efficiently and securely.

Closing

The future of finance looks bright thanks to mobile apps. These apps are making banking easier, more personal, and safer for all of us. 

As we move forward, we can expect even more helpful features that make managing money simple and secure. It’s an exciting time for anyone using these apps, with lots of positive changes on the way.

If you’re a business owner building an app, whether in finance or not, we, at Segwitz, can help.
We’re your end-to-end tech strategist, developer and execution partner in Malaysia.

For any project related queries or more info on our services, feel free to reach out to us. If you’d like to read more on the subject of tech stories, mobile app development and technological advancements, make sure you check out our blog section.

See ya in the next one.