CACI figures today reveal that mobile banking transactions will more than double by 2022, while branch visits will dwindle to just four visits each year for the average consumer in the same period.
The research, which comes from a paper published today by CACI, reveals that customer interactions with their bank will increase by 54% in the next five years – largely driven by the continued rise of mobile banking. Banking app transactions will increase by 121%, meaning that log-ins, balance checks and payments will more than double. Interactions made using a laptop or desktop will decrease by 63% between 2017 and 2022, as more and more consumers switch to smartphones to carry out transactions. This means that mobile banking, as it has so far, will continue to dominate the agenda for banks and FIs with customers across all demographics increasing engagement with digital channels.
Branch visits are also forecast to drop significantly across a number of demographics, with customers who do use their branch visiting less frequently, and some consumers less likely to use their branch at all. Households without children will see their visits decline from almost eight a year in 2017, to around three per year in 2022. Those aged 18-24 and starting out in life will visit their bank around six times this year, and this again will dip to just two visits annually in 2022.
However, the shift towards mobile banking is not equal across all demographics, and the predicted rise in transactions is partly driven by the adoption of technology by customers who have previously relied heavily on a physical branch presence. There will be five times more elderly, low income customers using mobile banking in 2022 than in 2017, and consumers aged 50+ will account for almost a third of all mobile banking log-ins in 2022. This highlights the ongoing trend not only of mobile banking, but of older generations embracing the technology available to make handling their finances simpler.
Additionally, mobile growth will be helped by the shift from online banking (desktop/laptop) to smartphone apps amongst many customers – 42% of high-income professionals will move away from desktop banking in the next five years, and this pattern is the same across the demographic spectrum.
Jamie Morawiec, Associate Partner at CACI said:
“The speed and convenience of mobile banking is a huge contributing factor to its ongoing popularity, especially as banks add more and more functionality to their apps. Understanding who is using it, and how, is key for banks to ensure it works for everyone. However with more than half of the population still expected to visit a branch in 2022, the branch still has an important role to play. Banks and FIs must ensure that the function of the branch remains relevant, complements the digital channels, and meets the specific needs of the demographics that are using them.”
2017 (interactions by million)
- Branch interactions: 261
- Internet (computer) interactions: 567
- Mobile interactions: 1,403
- Telephone interactions :67
- Total interactions: 2,298
2022 (interactions by million)
- Branch interactions: 168 – percentage difference -36%
- Internet (computer) interactions: 208 – percentage difference -63%
- Mobile interactions: 3,105 – percentage difference +121%
- Telephone interactions: 47 – percentage difference -30%
- Total interactions: 3528 – percentage difference +54%