Juniper: Mobile banking set for huge growth
New Juniper Research study projects more than 2 billion will use mobile banking by 2021; banks are becoming concerned about competition from tech firms
More than 2 billion mobile users will have used their devices for banking purposes by the end of 2021, compared to 1.2 billion this year globally, according to a recent study by Juniper Research.
The study revealed that the growth in the mobile banking is mainly fueled by consumer adoption of banking apps which change the way consumers manage their finances.
The study also found that the number of mobile banking logins are now exceeding that of internet banking logins in many markets. In the UK, banking app logins reached 11 million per day during 2015, compared to 4.3 million internet banking logins during the same period, according to the British Trade Association for Banking (BBA).
Meanwhile, a recent survey conducted by Juniper Research found that nearly 65% of mobile banking customers in the US and the UK use an app to conduct banking services.
Juniper’s study also showed that banks are becoming increasingly concerned about technology firms and pure-play vendors enabled by technology and regulations to enter the financial services market.
“Recent industry shifts highlight why traditional banks must respond rapidly to retain market share by cultivating new revenue channels and enhancing existing base through sustained innovation. However the challenge here for new players is to increase market share and maintain profitability in the long-run”, Juniper Research Analyst Nitin Bhas said.
APAC mobile payment market to reach revenues of $271.5 billion by 2021
In related news, the mobile payment market in Asia-Pacific (excluding China and India) is forecast to reach $271.5 billion by 2021, up compared to $71.9 billion this year, according to a recent research from Frost & Sullivan.
The study also revealed that the number of active mobile payments users will also double to 130.8 million by 2021.
“The mobile payments market in Asia-Pacific is guided by local preferences and considerations,” said Frost & Sullivan Digital Transformation Industry Principal Analyst Quah Mei Lee. “For instance, in Indonesia and the Philippines, telcos lead with their e-money products whereas in Japan, South Korea and Australia, credit card is the key payment method. Understanding these dynamics is critical for mobile payments solution providers to succeed.”
The mobile payment market in Asia-Pacific is being led by developed countries such as Japan, South Korea, Australia and Singapore, according to the study.