Mobile banking will surpass financial browser apps by 2019 and completely outshine it within the next half a decade in the United Kingdom, information services company CACI said Monday. Some 22 million people in the country are already managing their bank accounts over their smartphones and 35 million Brits — or nearly every fourth UK national — will be doing so by 2023, the company predicts. The new trend will make financial institutions run more efficient businesses, particularly in regards to the manpower they’ll require in their branches, as consumers are only expected to physically visit a bank twice per year by 2023, according to the same report.
As the popularity of mobile banking apps for Android and iOS continues rising, browser-based solutions are declining in usage. Researcher Jamie Morawiec who authored the report believes smartphone solutions will allow the financial segment to save “billions” on an annual basis, with some branches possibly even being slated to be shut down permanently as the demand for such outlets continues dropping, with that trend already starting in the banking sector in recent times. While large metropolitan populations are already relying on mobile apps for the account management needs on a significant scale, the largest boost in popularity of such solutions among British consumers is likely to be fueled by massive adoption in smaller coastal towns and rural areas of the country, CACI said.
Financial institutions have been increasing their technological focus over the course of the last decade, both in terms of authentication and broader solutions such as artificial intelligence assistants meant to educate their customers and help them in other ways. Bank of America just launched one such service on a national level earlier today, having brought its digital helper Erica to approximately 25 million of its customers throughout the United States. While technological advancements have been benefitting the financial sector for years now, certain industry players also see the world’s biggest innovators as long-term threats, with Deutsche Bank expressing such concerns late last year.