Mobile Banking Will Increase and Online Banking Will Decrease

Recently, Netbanker, the blog that has long championed online banking, projected that online banking in the US will “slowly head down” in favor of mobile banking. The blog made the projection as part of a release of some elements of a new report on online and mobile banking.

The report reads:
While our reading of the tea leaves is unlikely to be perfect, it seems clear that the demand for online banking in the United States is clearly plateauing (note 1). In fact, we are likely within a year or two of online banking penetration peaking and slowly heading down.

How could that be? Mobile of course. In fact, through the end of 2020, we project an increase of 40 to 45 million U.S. households using mobile banking, to a total of nearly 60 million. During the same period, online banking penetration is actually expected to drop by a few million households. If we are right, sometime near the end of the decade mobile banking will surpass online, although by then the two will look pretty similar.

I agree with NetBanker’s assessment and believe the shift to mobile demands greater attention from banks, particular those lagging on the innovation curve. You will soon see innovations such as Mobile Deposit and Mobile Photo Bill Pay offered by Mitek Systems flood the market These innovations will bring the financial institutions up to par in this tech savvy day in age that we live in.

Notes:
1. The penetration of online banking into U.S. households is relatively flat going forward. However, because each households accesses a larger number of financial accounts, growth at individual financial institutions is still growing on average.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: