According to a report by business technology provider Avanade, a third of UK consumers are expected to use smartphones for their banking transactions by 2020. And about two-thirds of banks in the UK expect everyone to be transacting with banks using their mobile phones by 2017.
This study is based on a survey of 30 customer service managers from various UK banks and 2,000 consumers. The report concluded that for banks that would embrace mobile payment technology, new market opportunities will open.
Among the people that were surveyed, 500 or a quarter of them want their primary retail bank to manage all their financial services. One in six consumers also said that they are willing to pay their bank to manage all of their utility payments.
Many mobile banking tools are also in development such as voice payment, where payment instructions and authentication will be spoken to the phone, and self-pay, a service where NFC and 4G technologies are combined to make it easier for customers to pay thus avoiding long lines.
Mobile technology and mobile banking in particular will continue to grow in the coming years. Banks such as Barclays are already developing a mobile wallet system wherein customers can track all of their spending using their mobile phones.
- A third of UK consumers are expected to use mobile banking services by 2020
- A quarter of respondents want their primary bank to manage their financial services
- One in six are willing to pay their banks to manage utility payments
Nic Merriman, UK Chief Technology Officer at Avanade: “The way banks provide financial services is changing. Customers are looking for personal financial management on their mobile devices. Multi-channel banking is coming, and the mobile will be the dominant form. Banks that can provide a customer-centric model that links their services together effectively will be the ones to come out on top.”
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