HAMPSHIRE, U.K.–New research from Juniper Research is projecting that more than one billion mobile phone users will have used their devices for banking purposes by the end of this year.
This global user base is forecast to reach two billion by 2020, by which time it will represent 37% of the global adult population.
Growth in adoption has been particularly aggressive in emerging markets, leading Juniper to revise adoption forecasts upwards. Under Juniper’s revised forecasts, mobile banking users will exceed the one-billion mark this year instead of during the first half of 2016 as previously anticipated.
The new research, Worldwide Digital Banking: Mobile, Online and Wearable 2015-2020, notes that banking strategy in the retail space has evolved into an omni-channel approach by providing a seamless and integrated experience across multiple individual channels. However, while most consumers – especially in developed markets – prefer digital banking and virtual channels, a significant proportion still favor an in-branch, face-to-face meeting compared with an audio or video call with a customer contact center, Juniper Research said.
Juniper argues that this strategy will change further as banks finalize a “balancing act” between multiple channels. “This is more likely to be centered on the mobile device as more banks move towards a ‘mobile first’ approach; additionally, this trend is likely to accelerate given the scale of physical branch closures in some markets,” added research author Nitin Bhas.
Meanwhile, the research observed that while Bitcoin has struggled to match the hype, the technology underpinning it, blockchain, is becoming the focus of increased attention from banks as an array of alternative implementations are considered.
It pointed out that players such as UBS and Deutsche Bank are exploring models whereby banks could become “the custodians of cryptographic keys” and use the technology to create a common standard for securities and assets trading.
Other key findings include:
- Juniper estimates that around 19% of global household bills will be paid via PC, tablet and mobile devices this year.
- Global online banking users as a proportion of banked individuals is forecast to cross the 50% mark in 2016.