Mobile Banking Usage to Double in Four Years
Mobile banking usage throughout the world is expected to double in less than four years, according to a new study from KPMG and UBS. In 2014, the number of mobile banking users was close to 800 million, but that number is expected to reach 1.8 billion by 2018.
If these predictions hold true, roughly 25% of the world’s population will have a mobile banking account by the end of 2018. The firm reported mobile banking functionality is already a “key factor in the selection of a new bank by switchers,” meaning that people looking for a new bank often choose one based on the financial institution’s mobile features.
The report, entitled the “Global Mobile Banking Report”, showed the average age of mobile banking users in different areas of the world: 32 in the United States, 30 in India, 39 in Europe, 37 in Japan and China, and 35 in Australia.
Adoption rates for mobile banking are highest in developing countries, like China, India, South Africa and South Korea – all ranging between 50% and 60%. The United States and Australia reported a more modest adoption rate of 30-35%, while the UK reported just under 30%.
The number of users who would recommend mobile banking to a friend followed along these same lines. Nigeria and India scored the highest at over 80%, while the United States had a 78% referral rate, and the UK had a similar 75% rate. Japan had the lowest referral rate at just 52%.
The increasing availability of mobile wallets is making users more comfortable with mobile banking platforms, and the increased convenience of banking on the go may also play a role in the forthcoming growth of the market.
The report points out the need for banks to expand their mobile services and to invest in a high level of security, since 40% of respondents cited concerns about entering card details onto mobile devices.