Mobile banking apps to overtake online banking

A report from industry analyst CACI has predicted that more consumers will be banking via a mobile app instead of from a computer by 2019.

The study showed that more than 20 million people used a mobile phone to manage their account in 2017 and predicts that 35 million adults in the UK will be banking via a mobile by 2023.

Decline

The report also predicts that the number of visits to bank branches will decline, with customers typically visiting a branch just twice a year by 2023.

When it comes to which areas will see the biggest rise in mobile banking over the next five years, the report predicts that those living in rural areas and small coastal towns will turn to mobile banking as a result of them not being satisfied with their broadband access.

The study comes as the UK’s biggest banks continue to shut down branches, with more closures planned in the future. Lloyds recently announced that the bank will be closing 49 branches, while RBS is set to close more than 160 branches throughout England and Wales this year.

Functionality

Commenting on the rise in mobile banking, the report’s author Jamie Morawiec said: “With so much more functionality, mobile is rapidly becoming the digital channel of choice, and replacing traditional online banking for many customers.”

He added: “Whilst the number of internet log-ons is decreasing, so are the numbers of users. In fact, CACI predicts that 2019 will be the year in which mobile banking overtakes internet banking in terms of users.”