In a new report published by the Centre for Economics and Business Research (Cebr) and Fiserv suggests that the use of online, mobile and digital banking will continue to increase in the coming years and will result in the total value of transactions being moved through mobile banking applications is expected to double by 2020. According to the research, this would translate to £1.7 ($2.5) billion increasing to £3.4 ($5.0) billion a week in terms of money being transferred on a weekly basis.
The new report, called The Future Trends in UK Banking estimates that the number of mobile banking users will also double from 17.8 million today to 32.6 million by 2020. With 32.6 million mobile banking users, The Future Trends in UK Banking estimates that mobile banking users will only trail online banking users by just more than 2 million in 2020 whereas today, they trail online banking users by nearly 10 million (note that mobile and online banking users are not mutually exclusive).
Commenting on the results, Travers Clarke-Walker, chief marketing officer, International Group, Fiserv said,
“The technological developments allowing for the recent surge in digital banking are also enabling banks and new entrants to reach potential customers more quickly and cost effectively than ever before. Banks must be prepared to meet the 24/7 needs of digital banking customers and may risk their reputation if they are not.”
While the results from the Centre for Economics and Business Research (Cebr) and Fiserv are not particularly surprising given the industry acknowledgement of increased consumer digital channel use, it is important to highlight that there will be significant advances in online and mobile banking use in the years ahead. As a result, the pressure is on banking and payment service providers to get the online and mobile experience correct or risk losing out on customers and the potential volume being transferred on a weekly basis as identified by The Future Trends in UK Banking.
Overview by Tristan Hugo-Webb, Director, Global Payments Advisory Service at Mercator Advisory Group
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