The number of global mobile banking users is set to double to 1.8 billion over the next four years, according to research by KPMG, using primary survey data supplied by UBS Evidence Lab.
KPMG’s “Global Mobile Banking Report” states that although the mobile channel is already the largest channel by volume of transactions, its adoption by new customers is now entering an exceptionally rapid phase, and is estimated to comprise over 25% of the world’s population in the next four years,
The report warns that banks who do not have clear mobile banking strategies will lose customers and cross-selling opportunities in the short-term, as well as jeopardising competitive advantage. According to KPMG, banks should investigate the potential of value added services in order to take advantage of the surge in mobile banking.
KPMG is urging banks to be wary of pushing “device intimacy” by bombarding customers with unwanted sales pitches. Instead banks should seek to offer personalised support supplemented by added value features such as social media sharing and cloud storage. Investment should also be made in mobile-enabled technologies, such as wearables and augmented reality, and provision APIs to the developer community to expand the innovation opportunity.
“Mobile banking is clearly supplanting all other channels as the main portal between the bank and the consumer,” said David Hodgkinson, KPMG’s UK digital and mobile banking lead. “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.”