Mobile banking is expected to grow at a CAGR of 17% over the next five years. A new whitepaper predicts 1.75 billion mobile phone users will have used their devices for banking purposes by the end of 2019, compared to 800 million this year.
The report from Hampshire, UK-based Juniper, suggests the number of mobile banking users will exceed online banking users for the first time by 2019. The report notes that mobile banking technology is currently available in most regions of the world, driven by exceptional consumer demand, especially in the developed regions. Providers such as the Bank of America have already announced, back in 2013, that more of their customers are logging in to their mobile services than through their online system.
Additionally, the new report, Mobile & Online Banking: Developed & Developing Market Strategies 2014-2019, notes that emerging countries such as China, India and Bangladesh also witnessed significant growth in the past 12 months.
The scale of the mobile banking challenge has been confirmed by the decreasing number of branch visits by consumers and also the closure of physical bank branches over the past 12-24 months. For example, in April 2014, RBS UK announced the closure of 44 branches across the UK.
The report also notes that nearly 100% of the banks analyzed had some sort of mobile (SMS, Browser and App based) and online banking offering, with almost every bank having apps available for at least one smartphone OS. Banking apps are ranked highly amongst the most downloaded financial apps in different app stores, with banks reporting high number of average logins per month per user.
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