Blog article
See all stories »

All grown up - Mobile Banking reaches the middle of the mainstream. So where now?

I have just read a fascinating report from ING. In their International Survey, ‘The Rise of Mobile Banking and the Changing Face of Payments in the Digital Age’, ING have surveyed users across Europe and the US. The key message for me is that mobile banking is now mainstream. After all, it is used by 41% of Europeans.

The good news for those involved in mobile banking is that our hard work is paying off. 48% of respondents say that mobile banking has made them feel more in control of their finances. Indeed this feeling grows the longer customers have used mobile banking. 52% of respondents who have used mobile banking since 2013 felt more in control of their finances.

What is most interesting for me in the report are the indications of future trends. Whilst 50% of European consumers are using less cash, this does not appear to be driven by mobile banking. It is likely to have come from the adoption of cards, contactless or the use of online payments. In fact, it is apparent in the report that mobile payment apps remain at the fringes. Only 33% of users have used a mobile payment app. However, many customers anticipate using mobile payment apps in the future. Undoubtedly, there is scope for growth and enhancement in payment apps and wallets.  

So what else could be shaping the mobile market over the next few years? Trends which are not yet apparent in the ING research include the impact of smart watches. In the next couple of years, I expect that we will see the industry focus on how to make this new platform relevant for financial services.

It is likely that we will see banks selling more via mobile. This is likely to happen in two ways. First will be through the improved placement of mobile marketing. We will see more contextual and location based ads. Banks will also use our social graph data more, to drive personalised marketing via mobile.

In addition to this, banks will be a lot smarter at designing sales processes for mobile. We’ll see more one touch sales for simple or pre-approved products like overdraft extensions or personal loans. Lending apps from companies like Wonga have proved what is possible.

What other features do you expect to see in the coming years?

 

7424

Comments: (1)

Vivek Singh
Vivek Singh - Mastek Ltd - Mumbai 05 February, 2016, 07:00Be the first to give this comment the thumbs up 0 likes

I see money management as the one of the augmented features of online banking. Digit - a money management app connects with a customer bank account and then based on spending behavior, automatically removes a small sum of money and deposits it in a saving account.

Also if a bank does spend analysis of its customer it can offer product such as pay day loans(Wonga.com).

Multicurrency digital wallets would be another feature allowing the millenials going glocal to be at ease.

Do share your thoughts!

 

Alex Bray

Alex Bray

AVP, Omni-Channel Acquisition & Servicing

Genpact

Member since

05 Feb 2011

Location

London

Blog posts

23

Comments

4

This post is from a series of posts in the group:

Online Banking

This community is for discussion of developments in the e-banking world, including mobile banking. This can include all the functional, business, technical, marketing, web site design, security and other related topics of Internet Banking segment, including public websites of the banks and financial institutions across the globe.


See all