A decade ago, only around a third of us regularly used online banking. Now, the majority of us are happy to do most of our banking without ever stepping foot in a branch, but the way we are doing so is still changing. The past couple of years have seen a sharp rise in people using banking apps rather than going through their browsers, and it’s now predicted that mobile apps will overtake internet log-ins next year.
Jamie Morawiec of industry analysts CACI said: “With so much more functionality, mobile is rapidly becoming the digital channel of choice, and replacing traditional online banking for many customers.
"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."
Three quarters will be using banking apps by 2023
According to a CACI report, 22 million people managed their bank accounts using their mobile phones last year. It has predicted that this will rise to 35 million within the next five years. That means nearly three quarters (72%) of the adult population of the UK banking via phone apps by 2023.
It predicted that the biggest swing would take place in rural areas and smaller coastal towns, as consumers with lower rates of fast broadband access increasingly rely on their smartphone connections.
This could see more banks reviewing their branch locations and numbers. The CACI report suggests that by 2023, bank customers would only visit branches an average of twice a year.
Pre-prepared tablets for seniors
Older people remain less likely to do their banking through either a browser or apps, but there are efforts being made to close this “digital divide”. In Finland, operator DNA is working with the Nordea bank to encourage seniors to try out digital banking.
To this end, they are supplying a tablet that comes pre-loaded with banking apps and is also suitable for people with visual and accessibility issues. Nordea’s Business Manager Sari Tempakka said that the aim was to prevent digital exclusion.
Open banking to cause app shake-up
The advent of open banking is also set to bring a big change in the way we use banking-related apps. Previously, the big banks had been able to collect and essentially hoard their own data, but under open banking they are now required to open customer data that they hold to third parties via secure APIs. One big effect will be to let customers see all their accounts in one place and switch providers more easily, but other more innovative apps are also likely to surface.
At the moment, HSBC is the only big high street bank to have released an open banking app, with its Connected Money app letting users see all their accounts onscreen, no matter who they bank with. Other apps from third-party providers (TPPs) allow users to check if they are eligible for certain financial services and to monitor which open banking services they have given permission to use their data.
Open banking is still relatively new, however, and Hamish Thomas of consulting firm EY told the Telegraph that the “killer apps are yet to emerge”.
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