Mobile banking is an important factor in rebuilding consumer goodwill towards the UK’s high street banks, according to a new online YouGov report commissioned by IE, an online and mobile software provider. The research revealed that one in four of people aged between 18 and 34 would improve their opinion of their bank if it offered mobile phone banking services.
While security is often referred to as a barrier to mobile banking adoption, in fact 61% of GB adults questioned online that have a bank account said that security concerns would not prevent them from using mobile banking. Instead, banks themselves are hindering mobile banking up take.
One in six (17%) 18 to 34 year olds want to use mobile banking but are unable to do so, revealing that demand for the service is not being met. Of this group, 35% fail because they don’t know how to mobile bank whereas 23% are let down by the fact that their financial institution does not offer the service.
The online research also confirmed the continuing decline of traditional banking services for direct, electronic anytime access channels, with 74% of respondents surveyed stating that the internet and mobile are their most preferred methods to check bank balance information. This compares to only 14% of respondents who prefer to check their balance at an ATM and 5% in branch.
Consumers rank convenient access to information as an important feature of mobile banking, with checking their account balance (43%) and checking recent transactions (36%) ranking as the most appreciated services.
Commenting on the research, James Richards, director of mobile at IE said: “In little more than a decade of change, there are now significantly more people who prefer to use direct channels such as the internet and mobile to access banking services than those that use traditional facilities like the branch. Failing to acknowledge the trend towards the mobile will have repercussions for a bank’s brand image and customer loyalty. It is imperative that financial institutions respond to customer demand for anytime, everywhere access to financial products and services and integrate mobile banking to gain a competitive advantage.”