Mobile users are increasingly taking to their devices as a tool for banking, with growth being driven by adoption of banking apps, changing the way in which consumers manage their finances, according to new Juniper Research research.
Juniper forecasts that by the end of 2021, over 2 billion mobile users will have used their devices for banking purposes globally, up from 1.2 billion this year.
Juniper found that in many markets the number of mobile banking logins is now exceeding internet banking logins, noting that the British Bankers’ Association has advised that UK banking app logins reached a record 11 million per day during 2015, compared to 4.3 million internet banking logins.
A recent Juniper consumer survey found that around 65 per cent of mobile banking customers in the US and the UK use an app to conduct banking services.
Meanwhile, the Juniper 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”.
Juniper notes that thus far in 2016, in the UK alone five new digital banks have received licences or launched services, while around 20 banks are currently in talks with regulators to receive a licence.
“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,” research author Nitin Bhas commented.
“However, the challenge here for new players is to increase market share and maintain profitability in the long run.”
