The number of mobile banking users is expected to double to 1.8 billion in the coming four years, according to a report by KPMG based on primary survey data supplied by UBS Evidence Lab.
According to the report titled, Global Mobile Banking Report, the highest adoption rates have been recorded in developing countries- 60-70% in China and India – compared to developed nations like US, Canada and the UK.
The report indicates a clear link between a strong mobile proposition, customer satisfaction and advocacy, adding that this growth in mobile banking and its integration with other technologies is driving an era of ‘Open Banking’.
In order to capitalise on this open banking era, the report suggests banks to explore the potential of value added services in mobile banking, collaborate more effectively with third-party developers, and invest in security.
The report also warns that without clear mobile banking strategies, banks will run the risk of losing customers and cross-sell opportunities in the short-term.
KPMG UK digital and mobile banking lead and the report’s author David Hodgkinson said: "This new, exciting phase of mobile banking innovation, spearheaded by new market entrants as well as pioneering banks, will be a rollercoaster.
"Banks must overcome substantial infrastructural challenges, and reconcile consumers’ appetite for ease of use with greater security. Boldness will be required to overcome these challenges, and the only sure-fire winner will be the consumer."