Want a Better Mobile Banking System? Follow the Infrastructure Imperative
The performance of a mobile banking system can make or break a financial institution. According to The Financial Brand, mobile banking app usage has increased exponentially over the past few years. More importantly, the use of mobile banking correlates with an immediate boost to customer satisfaction ratings and results in even more positive reactions if users have a highly satisfying experience.
So, how do organizations ensure their mobile system is up to the challenge? Applications are now mobile-native and high-performing, so companies need to drill down to the next step: the infrastructure imperative.
The Anatomy of a Mobile Solution
Most institutions have their own proprietary app design and function, but at its core, every mobile banking system has two main components: a database layer that houses critical information to perform required calculations, and a mobile layer that manages device requests and determines the next course of action — for example, moving money or accessing a specific service.
While apps themselves, much like software-as-a-service, have enjoyed considerable evolution over the past few years to make them safer and more user-friendly, infrastructure lags behind. Many companies still run aging in-house hardware that struggles to keep up with mobile user demand.
Moving Infrastructure Offsite
One option to ease the infrastructure load of mobile systems is to move some or all of the necessary data to offsite servers. This is an ideal starting point for many banks because the deployment of a fully owned and operated data center provides total control over operations.
Moving to an offsite solution can also improve the security of both corporate systems and banking apps. According to a recent study by Arxan, 92 percent of mobile financial apps are vulnerable to at least two of OWASP’s top 10 mobile risks. By moving this data offsite, it’s possible for banks to separate critical corporate infrastructure from mobile applications and ensure both are independently assessed for security risks.
Consider a Cloud-Based Mobile Banking System
Financial institutions can also satisfy the infrastructure imperative through the judicious use of cloud computing. Here, the biggest draws are processing power and resource distribution. If current servers don’t have enough throughput to handle millions of mobile banking system requests simultaneously, the result is a diminished response to user-requested operations. If transfers or account balance checks suddenly slow to a crawl, satisfaction quickly drops.
As noted by Diginomica, big financial players are only now starting to see significant upticks in mobile banking adoption. The cloud could be the difference between keeping these customers happy or pushing them toward a local credit union with better mobile access.
Go With Composable Infrastructure
There is also an emerging future for bank back-ends in the form of composable infrastructure. According to Data Center Knowledge, composable infrastructure combines new hardware, software intelligence and a single API. It produces pools of core data center elements — compute, storage and networking fabric — that can then be combined to fit the needs of any application.
Instead of overprovisioning resources to meet sudden demand, composable infrastructure spreads out any spare capacity across the entire system and makes it available on demand. Both mobile back-end and calculation databases can be served by the same composable structure with just a few simple commands from IT. The attached software intelligence ensures all resources are effectively distributed. Think of it as a logical extension of cloud computing — instead of supplying outsourced, easily configurable infrastructure managed by a third-party provider, existing capacity and performance is handled on the fly.
Streamlined, secure mobile banking is now a must-have. However, exceeding expectations demand an improved infrastructure. Start with offsite storage, consider cloud computing and keep an eye on composable solutions.