Britain’s ‘App-etite’ for Mobile Banking Grows

Customers are increasingly relying on banking apps to manage their money with app transactions rising by 57% during 20164 – according to the latest industry-wide report by the BBA and EY.

‘An app-etite for banking’, the latest edition of the Way We Bank Now series, builds upon previous findings acknowledging the consumer-led trend towards digital banking. The research shows how over 19.6 million people used banking apps in 2016, an increase of 11% on the previous year5, corresponding to almost 4 in 10 (38%) of the UK adult population.

Customers are using banking apps to do more than just check their account balance, with significant growth in customer numbers using apps to manage their savings (30%), credit cards (46%) and mortgage/investment accounts (86%) grew significantly in 2016.

From apps that turn our mobiles into portable banks, to text alerts, cheque-imaging, biometric identification and live video chat, technology is making it easier to access banking services at home, at work or on the go, transforming the way that we handle our finances. Mobile ‘banks on wheels’ are helping people in some rural communities get better physical bank access.

The findings show:

• Customer use of  banking apps soared by 354% between 2012 to 20177, as many customers find this the most convenient way to manage their finances;
• Customers are also moving beyond just checking their balances, with 64% using apps to transfer money, six in 10 paying other individuals (60%) and just under a quarter arranging standing orders (23%) in 2016;8
• A record 4.4 million customer webchats in 2016 – an increase of 24% over the previous year and the equivalent of 510 web chats every hour;9
• Banks are also responding to this shift towards customer’s money management via their mobile and tablets, with over 434 million text alerts sent out to customers in 2016, an 18% increase on the previous year, thereby helping customers better manage their finances and keep an eye on their outgoings;10
• A 225% increase in contactless card spending during 2016 as 1 out of 4 card payments used this technology.

Eric Leenders, BBA Managing Director, Retail and Commercial Banking, said: “Customers’ appetite for using technology to manage their money on the move is showing no signs of abating, with banking apps now the principle means by which we access our current accounts. And this doesn’t appear to be a fad with more and more people moving beyond payments, increasingly using apps to access a broader range of banking services, such as savings, credit cards, mortgage and investment accounts. Latest developments in the consumer-led digital revolution are empowering customers to manage their finances more conveniently. Whether we want to visit our local bank branch, use a mobile or internet-bank, there are more ways we can choose to access and manage our money than ever before.”

Dan Cooper EY UK Banking and Capital Markets lead partner commented: “This latest report highlights how customers are increasingly using digital banking, which in turn is driving innovation.  This growing customer comfort with digital financial services sets the scene for the launch of Open Banking in 2018, when both banks and other providers will have the opportunity to present customers with greater choice and control over their financial lives.”