Firstly, why?
Banks have good reasons to encourage customers to use their mobile apps more often. First, it helps them make more money by offering products and services directly in the app. Second, it improves the customer experience - for example, by showing clearer payment information - and helps the bank work more efficiently.
Personalisation and targeting, competitive advantage, improved security and fraud prevention are other reasons why banks should encourage their customers to use the mobile app more often. Overall, quality banking apps can be a key factor in attracting new customers and engaging users in general.
Did you know? COVID-19 accelerated the transition to digital banking channels dominated by banking apps
We look at a survey conducted by Morning Consult on behalf of the American Bankers Association.
Prior to the COVID-19 pandemic, 33% of bank customers used apps on their phones or other mobile devices as their primary way to manage their bank accounts, while 24% used online banking most often via a laptop or computer. Almost 21% conducted their transactions most often in person at a bank branch.
During the pandemic, the frequency of use of digital channels increased even further (44% mobile apps, 26% online), while branch banking dropped to 10%.
The full survey can be found on the American Bankers Association .
"Digital banking was on the rise long before COVID-19, but the growth in mobile app usage accelerated when the pandemic made in-person banking more difficult," said Rob Morgan, ABA senior vice president of innovation strategy. "Today's banking apps are extremely sophisticated, and this survey shows that many consumers who try them will quickly choose preferred mobile banking."
Now, let's think about how to take advantage of this trend of moving clients to a mobile app. Below, we present an overview of 6 possible reasons to motivate users to visit more often and make the most of it.
6 Ways To Motivate Users:
Transparency
Transparency is now a baseline expectation in modern digital banking. Today’s users want more information, understanding and simplicity. They want clear, contextual information about every transaction: who they paid, what it was for, where it happened, and even why it’s showing up now.
That means going beyond outdated bank statements and offering enhanced visibility with:
- Accurate merchant names instead of vague or obscure identifiers
- Merchant logos for visual recognition at a glance
- Precise transaction categorisation (e.g., “Groceries” or “Dining Out,” not “General Retail”)
- Real-time GPS tagging or map previews showing where the purchase took place
- Recurring tag indicators so users know whether it's a subscription or a one-time charge
When users see enriched, trustworthy data, they gain confidence and control over their finances. It helps them spot fraud faster, reduce unnecessary spending, and build better financial habits.
Personalisation
For banks and fintechs, personalisation means offering services, insights, and product recommendations that reflect each customer’s unique financial life.
At the core of true personalisation is payment data enrichment. By transforming raw transactions into meaningful, structured data (e.g., merchant name, category, frequency, location), banks can uncover real patterns and preferences. Does the customer shop at organic grocery stores every week? Are they frequent travellers? Do they subscribe to streaming services, or do they dine out five times a week?
These insights enable banks to:
- Recommend financial products (like travel cards, savings accounts, or insurance) based on real behavior.
- Suggest money-saving opportunities, like switching energy providers or getting discounts from frequently visited merchants.
- Send smart nudges or alerts that are truly relevant - for example, reminding users of upcoming subscription renewals or flagging unusual spending in a category they normally avoid.
- Tailor educational content, such as budgeting tips or credit-building guides, based on individual needs and life stages.
Mobile payments
Convenience is king in digital banking, and mobile payments are no longer the only thing you can do on the go. By enabling seamless, real-time features, banks can transform the app from a passive balance-checking tool into an everyday financial hub.
When users can pay instantly from their phones - whether through NFC, QR codes, peer-to-peer transfers, or integrated wallet solutions - they engage with the app more frequently and more meaningfully.
Push notifications can be useful for users as they get instant feedback and alerts on important information such as new products or discounts. Push notifications can also provide helpful reminders, such as instalment payments or deadlines, which can help users keep their finances in check. Make sure notifications are personalised and not too intrusive so as not to put users off.
Push notifications
Push notifications can be useful for users as they get instant feedback and alerts on important information such as new products or discounts. Push notifications can also provide helpful reminders, such as instalment payments or deadlines, which can help users keep their finances in check. Make sure notifications are personalised and not too intrusive so as not to put users off.
Virtual assistants
Give clients the ability to interact with a virtual assistant who can answer questions and help solve problems. For example, a virtual assistant can provide users with transaction and payment information, such as account balance information or transaction history. This feature will make it easy for users to get information and improve their experience with the app. An example of a smart banking assistant can be Czech Fintech's AddAI solution.
Cash back programs
Everyone loves getting something back. Cashback programs are one of the most effective ways to boost user activity and engagement within a banking app. By rewarding everyday spending with tangible benefits - such as money back, discounts, or loyalty perks - banks and fintechs can increase retention, build habit loops, and reinforce the value of their platform. But the real game-changer lies in personalisation.
Instead of offering generic rewards, modern banks are using payment data enrichment to understand individual spending habits and tailor cashback offers accordingly. This allows users to earn on the things they already buy - making the experience feel useful, relevant, and rewarding. By analysing customer buying behavior, you can get personalised promotions. Your clients will save money on goods they normally buy and will visit your app more often.
You can also read about how to motivate users in our case study with bunq.
The Impact of Specialisation on Bank Capitalisation
Given the increasing competition in the banking sector, specialisation is becoming increasingly important. If we want to understand the value of publicly traded banks and fintechs, we need to focus not only on geography and customer segmentation but also on specialisation. According to the data, "P/B" and return on equity are high for specialised players and fintech that focus on products such as deposits, payments, and consumer finance.
Traditional banks face challenges and insufficient return on equity, while fintechs and specialist players with innovative products can generate profits. Differences are evident across geographies, with banks in Asia and the Middle East currently the best-valued, while European banks face increased pressure from a potential recession.
By leveraging enhanced data, we can improve payments and other products to improve the overall value of the bank. Specialisation is therefore becoming a necessity in the banking sector and a key factor for success in the market.
This overview is based on data from McKinsey's Global Banking Annual Review, which identifies key trends and risks in the banking sector. The research shows that the best specialisms, depending on capitalisation, are banks with a focus on payments, which can be improved through data enhancement and the use of innovative technology. These trends are impacting banking markets around the world, from European and US banks to banks in emerging Asian countries.
Conclusion
The strategies mentioned above can help banks increase customer activity on the app and improve the user experience with banking services. Today, it is crucial for banks to be innovative and offer modern solutions that meet customer needs and expectations. Investing in mobile app development and creating an environment that actively engages customers can be beneficial for a bank both financially and in terms of acquiring new customers and retaining existing ones.
