Over one third of the adult global population to be using mobile banking in four year’s time
More than two billion mobile users globally will have used their devices for banking purposes by the end of 2021, compared to 1.2 billion this year. New research from Juniper Research has found that growth in mobile banking is being driven by consumer adoption of banking apps and the changing way consumers manage their finances.
The new research found that the number of mobile banking logins are now exceeding that of internet banking logins in many markets. For example, the British Trade Association for Banking (BBA) announced that banking app logins in the UK reached a record 11 million per day during 2015, compared to 4.3 million internet banking logins during the same period.
Meanwhile, a recent consumer survey conducted by Juniper Research found that around 65% of mobile banking customers in the US and the UK uses an app to conduct banking services.
The report found that banks are becoming increasingly concerned that their market position is being undermined by tech-companies and pure-play vendors enabled by technology and regulations to enter the marketplace. For example, in the UK alone five new digital banks received licences or launched services so far in 2016, including Starling, Tandem, Atom, N26, and Monzo, with around 20 banks currently in talks with regulators to receive a licence.
Additionally, by 2017, banks in the EU will be compelled to open their APIs. This will result in many innovative new products that analyse (with permission) user data to create more attractive financial services for customers.
“Recent industry shifts highlight why traditional banks must respond rapidly to retain market share by cultivating new revenue channels and enhancing existing base through sustained innovation. However the challenge here for new players is to increase market share and maintain profitability in the long-run,” added research author Nitin Bhas.