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How the Mobile Channel Drives Online Banking Usage

According to the latest market study by Juniper Research, the number of household bill payments made via PCs, media tablets and smartphones will exceed 20 billion this year, representing approximately 16 percent of all global consumer household bills.

This trend is being driven by a growing consumer acceptance of transactional digital banking, and the sharp rise in mobile banking adoption overall.

The Juniper study found that usage will continue to increase over the next five years as consumer -- especially Generation Y users -- opt for a multiple and immediate channel approach and use the mobile channel increasingly to manage their accounts.

Mobile and Online Banking Trends

The new study also found that despite the higher numbers of mobile users making use of bill payment and presentment services, it was still the PC and tablet users that produced the higher transaction values.

This highlights the importance of larger screen platforms for purpose of banking and bill payments. Digital banking users prefer the convenience and perceived security of the tablet or PC over the mobile handset.


That being said, Juniper forecasts that over 1.75 billion mobile phone users will have used their devices for banking purposes by the end of 2019 -- that's compared to 800 million this year.

Additionally, the number of mobile banking users is set to exceed the total number of online banking users by the end of the forecast period.

Consequently, the forecast of 1.75 billion mobile banking users means that almost 32 percent of the global adult population in 2019 are mobile banking users.

Emerging Role of Smart Wearable Devices

Additionally, the market study found that over the past 12 months, consumer electronics vendors have been working towards integrating a new channel into the mix, that being the latest smart wearable devices.

"Customers, particularly those of Gen Y, are attracted to banks that offer innovative and exciting new services. Banks are eager to capture these customers early and achieve lock-in. The ability to offer cutting edge banking applications and services is also a way for banks to secure customer loyalty and increase customer satisfaction," said Nitin Bhas, principal analyst at Juniper Research.

According to Juniper's assessment, wearables have the capability of bringing contextual information together in a highly convenient and personal manner. They also provide the potential for new push opportunities for financial institutions.

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