The number of UK mobile banking users is set to almost double from 17.8 million to 32.6 million by 2020, a recent research argues.
According to a recent report titled “Future Trends in UK Banking”, commissioned by Fiserv and compiled by the Centre for Economics and Business Research, money transfers via digital channels are forecast to grow to GBP 3.4 billion a week via mobile banking apps and GBP 9.4 billion a week via online banking, totalling GBP 12.8 billion a week over the same period.
Currently, just over a third (34%) of UK adults are estimated to be banking on their mobile. With the increasingly widespread ownership of smartphones and a growing appetite amongst UK adults to access their finances on-the-go, this figure is expected to almost double to 60% by 2020. This projected increase of 14.8 million more mobile banking users over the next half-decade represents a significant opportunity for challenger banks, Fiserv claims, to bring innovative business models to the market and for existing banks to add digital services to cater to this future majority.
The study adds that with the emergence of more high-tech features such as remote cheque capture and apps such as PayM, a wide range of mobile banking functions like checking your balance or conducting transfers are all expected to grow in popularity over the next five years. The total value of transactions being moved through mobile banking apps is expected to double by 2020 to GBP 3.4 billion a week.
Investors interested to benefit from this trend might want to have a look at Ferratum Group (www.ferratumgroup.com), listed in Germany since early 2015. The FinTech company is an international provider of mobile consumer loans and has a long track record in mobile banking services. Ferratum is based in Finland and was one of the first companies to provide loans via the internet and mobile phones when it started operations in 2005. Today, the company operates in more than 20 countries across Europe, the Asia-Pacific region and Canada. One of its subsidiaries, Erratum Bank Ltd, is a licensed credit institution with a banking licence in Malta which is used via cross-border provision of services in several EU member states.