3rd Nov 2017
Increasing numbers of British consumers are using their smartphone or another mobile device for their banking services, in place of physical branches.
According to the latest Visa Digital Payments Study, 69% of 18-34-year-olds have used mobile banking apps, with over half (55%) using them regularly.
And over a third (38%) of total respondents across the country regularly conduct their banking via an app. The results reflect increased investment in digital offerings from traditional providers, coupled with a growing number of app-first “challenger banks” entering the market.
Jonathan Vaux, Executive Director of Innovation Partnerships at Visa, says: “Mobile technology has revolutionised the retail banking industry. Until relatively recently, simple transactions such as transferring money between accounts meant visiting a bank branch in person.
“We are now seeing banks embrace the flexibility offered by apps to reduce the pain points for customers and allow them to stay on top of their finances while on the move. In essence, anyone with a smartphone or tablet is now able to take their bank branch with them wherever they go.”
UK consumers are also making use of the increased ability to quickly and securely make payments on their phone. Over a third (34%) note they have now made a peer-to-peer (P2P) digital payment via a mobile device, with millennials again leading the way as three fifths (59%) have sent mobile money to a family or friend.
With more mobile devices coming equipped with fingerprint scanners, millennials also demonstrate an increased appetite for using biometric technology when authenticating their identity. Of all 18-34-year-old respondents, 35% would prefer to make P2P payments using biometrics, compared with a national average of 30%; while 37% would like to use this technology in conjunction with a banking app, compared with 31% of total respondents.