42% choose to bank on the move

The Momentum UK Team 03 March 2014

More than two out of five customers are now using their smartphones to access their bank accounts, according to a new study.

Aside from basic functions such as making calls, sending emails or texting, mobile banking (42%) appeared third behind social networking (54%) and listening to music (46%). Closely following, the fourth and fifth top mobile uses were satellite navigation (39%) and watching videos (35%).

Demonstrating the growth in mobile banking, the study reinforced the position of financial services at the forefront of mobile technology, which includes contactless payments and quick fund transfer apps.

The study by Consumer Intelligence comes as The Payment Council prepares to expand a mobile payments scheme in April, where customers will be able to make payments directly to or from accounts using their phone.

Major banks and building providers have signed up as providers, including Lloyds, HSBC, Barclays, Santander, RBS, Cumberland Building Society, Metro Bank and Danske Bank - Barclays PingIt app has already been used to put down a £23,000 deposit on a house.

David Black, of Consumer Intelligence, suggested that the study indicates growing consumer trust in mobile banking:

“For banking to be joint third on the list shows just how much consumers trust their banks to provide a secure app through which to access their accounts. Many banks are reporting a surge in mobile banking usage with, for example, Barclays reporting a 150% increase in 2013 and Lloyds Banking Group now having more than four million mobile banking users.”

However well banks and building societies are adapting to the shift in technology, he also commented that “the low number of consumers using their phones to work with documents illustrates how smartphones are not quite the complete package just yet.”