By Mitch Armstrong for Finextra
Mobile banking apps are used more than 7,610 times per minute according to research by BBA
As Bill Gates famously said:
“Banking is essential, banks are not.”
According to research by BBA and Statista, consumers are now using mobile banking apps more often than any other method of banking.
Surveys conducted across 2015 and 2016 show that mobile banking is the preferred choice of the majority of the Great British public, with very few choosing to go into their local branch and interact face to face with someone over the counter.
In 2015 only 427 million branch interactions were carried out, this is shockingly low in comparison to the 859 million times users checked their balance using an online banking app.
The new forms of banking available to the consumer have also meant that the number of those choosing telephone banking is decreasing rapidly, falling 43% between 2008 and 2013.
The BBA are also predicting that by 2020 consumers will use their mobile device to check their bank balance more than 2.3 billion times, this is more than internet, branch and telephone banking combined.
Why do consumers choose mobile?
With so many users choosing to log into a mobile app rather than walk into their branch and speak to someone over the counter many are asking, why?
A survey conducted by Statista found that as of May 2016 42% reported using a mobile banking app within three months’ prior of the survey. The statistics also showed that 41% of users favoured device was a tablet and 42% preferred using a mobile app on the go.
By providing users with the ability to check their balance through their mobile we are making it much easier for them to apply for loans and finance through their mobiles too.
Banks can advertise their loans and finance options to their customers through the mobile applications, which has increased the number of those enquiring about finance that may be available to them.
Advertisements such as ‘loans for young people, ‘text loans’ and ‘mobile loans: apply from your mobile phone’ are making the process of applying for a loan seem much easier and therefore the number of people applying for loads has risen.
With mobile banking apps used more than 7,610 times a minute ‘mobile loans’ are enabling consumers to quickly apply for finance through their mobile, specifically the younger generation are being targeted through mobile banking apps.
Andrew Browne, CEO of BBA, said:
“Our influential Way We Bank Now report shows a staggering increase in people using mobile apps, proving it’s now easier than ever to interact with your bank. We are in the midst of a consumer-led revolution in the way we do our day-to-day banking. Customers love the new technology that is allowing us to bank round the clock.
“You can now set up standing orders while standing in the queue for the bus and check your balance while checking in at the airport. The choice now on offer from banks, from state-of-the-art branches to cutting edge apps, has put customers firmly in the driving seat on the way we bank.”
There is a real disadvantage in being the last entity to fully embrace this technology. Consumers will vote with their feet, and the first ones to fully embrace a digital customer experience will be leading the market in terms of share of customers.
First appeared at Finextra