Over two billion people mobile banking by 2020: Juniper Research
More than two billion people, a third of adults globally, will have used their mobiles for banking by 2020, according to Juniper Research, as consumers trend towards using banking apps and changes the way they manage finances. A separate survey cited found that 65% of mobile banking customers in the US and UK used an app on a tablet or smartphone to conduct their banking, concluding that banks are increasingly concerned about technology companies and mobile operators coming into the market.
Over 2bn mobile users will have used their device for banking purposes by 2020, representing over a third of the global adult population, as consumers embrace the ability to manage their money on the go.



The prediction comes from Juniper Research, which found that growth in mobile banking is largely being driven by consumer adoption of banking apps and the changing way consumers manage their finances.



1.2bn consumers globally already use their mobile to bank, with mobile banking logins now exceeding desktop internet banking in many markets, including the UK, where 11m consumers per day logged in via mobile per day in 2015, compared to just 4.3m per day via desktop in the same period.



Meanwhile, a separate consumer survey found that around of 65 per cent of mobile banking customers in the US and UK uses an app to conduct banking services on their smartphone or tablet.



The research study suggested that while banks are responding to consumer demand for mobile banking, they are also increasingly concerned about disruptive tech companies and mobile pure-play operators who are entering the marketplace.



In the UK alone, five new digital banks received licences or launched services in 2016, and next year, banks in the EU will be compelled to open their APIs, resulting in many innovative new products and services arising from the ability to analyse (with permission) user data.



"Recent industry shifts highlight why traditional banks must respond rapidly to retain market share by cultivating new revenue channels and enhancing existing base through innovation," said Nitin Bhas, author of the research. "However, the challenge here for new players is to increase market share and maintain profitability in the long-run."