Last updated: 28 November 2019
Mobile banking is now well on the way to becoming a regularly used and understood application around the world. And in spite of naysayers who defend traditional branches and talk down their decline at the hands of electronic banking channels, the demand for safe, secure and convenient mobile banking mixed with the capability of modern smartphones has pushed banks towards rolling out their own banking apps. The demand is growing all over the world as life, business and all forms of e-commerce become faster; banking has consequently had to speed up to compensate.
In the UK for example, a survey from Genpact has recently found that 64 per cent of Brits want to take their banking to mobile and/or online and, in the US, an ath Power poll has revealed how 66 per cent of small businesses in the US want to take advantage of mobile banking. And from a worldwide perspective, FICO research has revealed that 75 per cent of smartphone consumers around the world would at least like the ability to check account balances on the go, and that more than 50 per cent of them would like to make payments from their account and transfer money between their accounts using their smartphones. Furthermore, FICO’s Stuart Wells stated that, “Over one billion consumers worldwide have smartphones in their pockets, so it stands to reason that many of them would want to conduct their banking using those devices.” And from what we can see, this number of one billion will only continue to grow, especially in the US where smartphone ownership is already nearly 65 per cent.
The future of mobile banking is certainly a bright one, and the need for fast, convenient and secure banking on the go will continue to rise as smartphone (as well as SIM phone device) penetration increases on a global scale. However, we must not forget that there are still barriers that need to be addressed for development of mobile banking. Security concerns and BYOD prevalence in particular are hindering the growth of corporate mobile banking. Furthermore, the use of SMS-based OTPs (One Time Passwords) within banking apps is causing additional concern. These OTPs aren’t suited to mobile banking authentication and transactions. The Eurograbber attack , in which malware was used to target the PCs and mobile devices of banking customers, took advantage of SMS messages used by banks as part of customers’ secure login and authentication process and serves as a perfect example of how mobile banking instead requires dedicated security.
Despite some barriers, demand is growing and the technology is evolving (you can even bank from your wrist now), and these barriers will eventually be knocked down in the face of increased security and convenience. And then before you know it, physical banks’ presence will reduce so much, high street banks could become a thing of the past. Do you think mobile banking will continue to grow and overtake traditional banking? Let us know @Gemalto or leave a comment in the section below.