A new study has found the total value being moved through mobile banking apps in the U.K. is expected to double by 2020 while the amount of money being sent per week via online banking in the U.K. will rise 50%. Based on the new data, RAM Research calculates the number of mobile users and online users will grow at a Compound Annual Growth Rate (CAGR) of 16.33% and 6.02%, respectively.
The new research comes from the Future Trends in U.K. Banking report, compiled by the Centre for Economics and Business Research (Cebr) for Fiserv.
Currently, 34% of U.K. adults are estimated to be banking on their mobile. With the increasingly widespread ownership of smartphones and a growing appetite amongst U.K. adults to access their finances on-the-go, this figure is expected to almost double to 60% by 2020. This projected increase of 14.8 million more mobile banking users over the next half-decade represents a significant opportunity for challenger banks to bring their innovative business models to the market and for existing banks to add digital services to cater to this future majority.
With the emergence of more high-tech features such as remote cheque capture and apps such as PayM, a wide range of mobile banking functions like checking your balance or conducting transfers are all expected to grow in popularity over the next five years. The total value of transactions being moved through mobile banking apps is expected to double by 2020 to £3.4 billion a week.
U.K. online banking use is projected to rise significantly by the end of the decade, from 53% of Brits in 2014 to 66% by 2020. While younger age groups, particularly those between the ages of 25 and 34, are currently more likely to bank online, all age groups have seen a rise in the prevalence of online banking over the past two years. These increases have been driven by a consumer need to access information faster and on-the-go.
Looking ahead, this upward trend is forecast to continue as younger users who are already doing online banking enter a new age bracket by 2020. The number of U.K. adults using online banking is forecast to increase to over 35 million by 2020, up from 27.7 million in 2014.
This upward trend in online banking usage, combined with inflation and a stronger economy, suggests that by 2020, as much as £9.4 billion could be moved through online banking per week.
UK DIGITAL BANKING USERS
2015: 17.8 million
2016: 20.6 million
2017: 24.0 million
2018: 27.8 million
2019: 32.6 million
2015: 27.7 million
2016: 29.4 million
2017: 31.2 million
2018: 34.1 million
2019: 35.0 million
Source: Fiserv; RAM Research; CardData
For data, background and forecasts on Digital Banking: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).