The Future Trends in UK Banking report from the Centre for Economics and Business Research (Cebr) and Fiserv predicts that the use of online, mobile and digital banking will continue to increase in the coming years.
The Cebr/Fiserv study predicts that the total value being moved through mobile banking apps is expected to double by 2020, increasing from £1.7 billion to £3.4 billion a week. The study also says that the amount of money being sent per week via online banking is forecast to increase from £6.4 billion in 2014 to £9.4 billion by 2020.
The number of mobile banking users is set to almost double from 17.8 million to 32.6 million by 2020, while the number of UK adults using online banking will increase from 27.7 million to over 35 million, according to the Cebr/Fiserv report. This combined growth will see more money being transferred through digital channels, rising to £3.4 billion a week via mobile banking apps and £9.4 billion a week via online banking, totalling £12.8 billion a week.
The Future Trends in UK Banking research was conducted in late 2014 by surveying 2,003 U.K. adults, aged 18 and over, via an online omnibus survey. Other findings from the survey include:
- Just over a third (34 percent) of UK adults are estimated to be banking on their mobile.
- UK adults accessing their finances on-the-go is expected to almost double to 60 percent 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.
- The emergence features such as remote cheque capture and apps such as PayM, 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.
- UK online banking use is projected to rise significantly by the end of the decade, from 53 percent of Brits in 2014 to 66 percent by 2020.
- Those between the ages of 25 and 34, are currently more likely to bank online,
- However, all age groups have seen a rise in the prevalence of online banking over the past two years.
- The number of UK 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.
"The technological developments allowing for the recent surge in digital banking are also enabling banks and new entrants to reach potential customers more quickly and cost effectively than ever before,” says Travers Clarke-Walker, chief marketing officer, International Group, Fiserv.
“Banks must be prepared to meet the 24/7 needs of digital banking customers and may risk their reputation if they are not."