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Mobile banking on the rise

Mobile banking is set to overtake online by 2019.

According to research conducted by industry analyst CACI, the amount of customers using apps to access their banking information on a smartphone is set to overtake the number of people using their computer by as early as next year.

CACI reports that 22 million people in the UK managed their current account on their phone in 2017, and that number is set to rise to 35 million - or 72 percent of the UK adult population - by 2023.

The report added that rural areas and smaller coastal towns would see the biggest increase in mobile users between now and 2023, which will partly be down to frustration over broadband access pushing customers towards mobile networks.

Report author Jamie Morawiec said: "With so much more functionality, mobile is rapidly becoming the digital channel of choice, and replacing traditional online banking for many customers.

"Whilst the number of internet log-ons is decreasing, so are the numbers of users. In fact, CACI predicts that 2019 will be the year in which mobile banking overtakes internet banking in terms of users."

The rise of mobile banking does mean that banks may need to review the locations of their branches, as many companies will see a decrease in the number of people going to their local branch to complete transactions.

Major UK banks have already had to close hundreds of branches in recent years, and earlier this month, Royal Bank of Scotland announced it was to close 162 branches across England and Wales.

These closures follow plans to shut 52 bank branches in Scotland that serve rural communities, and 197 NatWest branches, whilst Lloyds also intend to close a further 49 of their branches.

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