Mobile Set to Be Most Used Banking Channel in UK

5 December 2008

Mobile banking is set to achieve the fastest rate of mass-market penetration in recent history, even outpacing items such as credit cards, online banking or ATMs. This is according to recent research published by the Future Foundation, a consumer-forecasting consultancy and Monitise plc (Monitise), the mobile money specialists.

• 11% of 35-44 year olds already use their mobile phone to manage their money.

• Those who have adopted mobile banking are using it even more, with nearly half (49%) of all existing customers claiming to have used the service more during the last year.

• 70% of consumers stated that online or mobile phone banking would help them to run their budget more efficiently.

• Two thirds (64%) of consumers agreed (or strongly agreed,) that it was important to be able to manage their money 24 hours a day, seven days a week.

“As consumers tighten their belts they are demanding that they are empowered with more control over their money. The banks have recognised this and most have rolled out mobile money services over the past 18 months. Today, we are beginning to move into the next evolution, with banks now introducing more advanced mobile management services to their customers,” said Alastair Lukies, Chief Executive Officer, Monitise.

Currently, it is estimated that over one million people in the UK have adopted mobile phone banking, ranging from basic text alerts to services such as Monilink that allows them to move money between accounts. Over 70% of all UK consumers are already offered mobile phone banking by their current banks and over 70% people, according to the study, said that online or mobile phone banking would help them run their budget more efficiently. With mobile bankers currently using the service nearly 50% more than last year its clear that mobile is an increasingly popular choice for consumers, who are now managing their money more closely.

Meabh Quoirin, Client Director, Future Foundation added, “One of the most significant consumer trends that we have seen in recent years is a move towards ‘social busyness’, as people choose to fit more and more activity into daily life. Interestingly, we have already started to see this reflected in the banking industry, as consumers become proactive as opposed to reactive when it comes to managing the minutiae of their personal finances.”

Alastair Lukies concluded: “Part of the success of mobile banking has been the sense of familiarity and immediacy that the service affords. People already interact with their bank in a multitude of formats and the opportunity to manage their money on a mobile phone is a natural extension to their existing financial armory. In much the same way that the UK public embraced the concept of the mobile phone itself, it’s the evolutionary nature of the service that has generated such huge appeal on the high street.”

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