The Mobile Banking 2015 report, produced by KPMG in collaboration with and using primary survey data supplied by UBS Evidence lab, looks at global trends and the impact they’re having on banks.
The number of mobile banking users globally is forecast to double to 1.8bn, over 25 per cent of the world’s population, in the next four years, according to research by KPMG using primary survey data supplied by UBS Evidence Lab.
The Global Mobile Banking Report, finds that while mobile is already the largest banking channel by volume of transactions, its adoption by new customers is now entering an exceptionally rapid phase. It also suggests that mobile banking and payment systems are increasingly being integrated with other technologies, driving an era of ‘Open Banking’.
The report warns that banks who do not have clear mobile banking strategies will lose customers and cross-sell opportunities in the short-term, as well as risk jeopardising competitive advantage.
In the short-term, the availability of mobile banking services is a key indicator when consumers choose to switch banks, and the report highlights a clear link between a strong mobile proposition, customer satisfaction and advocacy. However, mobile bank users, who are typically in the mid to late thirties, are the most likely to switch banks, suggesting that even an effective mobile banking offering is not enough by itself to retain these higher value customers.
In the long-term, the report suggests that as mobile banking technology is driving an area of ‘Open Banking’, where consumers can bank within context, across a variety of channels, operating systems and devices, including phones, tablets and wearables. For example, as a consumer holds-up their phone to a television in a store, an augmented reality app can recognise it and provide information including reviews and credit options.
The report highlights three key areas for banks to focus on in order to take advantage of the surge in mobile banking and therefore prepare for the ‘Open Banking’ era:
David Hodgkinson, KPMG’s UK digital and mobile banking lead and the report’s author, said: “Banks must adapt or die. Mobile banking is clearly supplanting all other channels as the main portal between the bank and the consumer. Many banks have already risen to the challenge and invested in new infrastructure and pioneering initiatives, but others must follow suit and commit to building both immediate propositions and on-going capability to keep up with the pace of change.
“This new, exciting phase of mobile banking innovation, spearheaded by new market entrants as well as pioneering banks, will be a rollercoaster. Banks must overcome substantial infrastructural challenges, and reconcile consumers’ appetite for ease of use with greater security. Boldness will be required to overcome these challenges, and the only sure-fire winner will be the consumer.”
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Notes to Editors:
About the report:
This report has been produced using primary survey data provided by UBS Evidence Lab. UBS have also published a report for institutional clients leveraging this primary data source.
UBS AG (UBS) and KPMG LLP, the UK member firm (KPMG), have cooperated to produce their separate reports on Mobile Banking which use data from the UBS Evidence Lab, amongst other sources. Whilst KPMG has had access to the results of the UBS Evidence Lab research, it has produced its report separately from UBS and each report is subject to the disclosures and disclaimers set out therein. Accordingly KPMG and UBS are each responsible for their own respective reports and not for the report of the other. KPMG has not had access to drafts or to the final version of the UBS report and analysis prior to publication. KPMG is not responsible for UBS’s conclusions and /or recommendations. KPMG’s report does not constitute investment advice and KPMG has not seen, input to or endorsed any investment advice provided by UBS in its report.
Other key findings include:
Simon Chan, KPMG Corporate Communications
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UBS Corporate Communications
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.