All grown up - Mobile Banking reaches the middle of the mainstream. So where now?
22 April 2015
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?