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Mobile banking set to overtake branch use by 2021

Theo Osborn | 12:13 Monday 1st July 2019

Mobile banking is set to overtake branch use and desktop banking in the next two years, according to the latest research.

The Growth of Digital Banking 2019 report by data expert CACI found that the proportion of customers using mobile banking apps will be higher than the amount using branches and desktop by 2021.

It predicts that by 2024 the proportion of customers using mobile banking apps will reach 71%, while branch users will decline to 55%.

There are now more than five million mobile banking app logins each day.

The report also revealed that more than 75% of new saving accounts are expected to come from online channels by 2024.

Jamie Morawiec, associate partner at CACI, said: “While digital — and mobile in particular — is clearly a frontrunner for the future of banking, there is a huge potential for financial institutions to tap into unexplored markets, such as younger customers who have current accounts, but aren’t necessarily saving yet.

“The increase in popularity of P2P lending — alongside the rise of the challenger banks — will change the landscape for traditional banks. 

“To stay tapped into the savings cross-sell, banks must offer a seamless, tech-driven user experience. 

“In order to win over these younger savers, a digital proposition should be simple to set up and use in-app, and not require long-term or significant commitment.”

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