Six million Aussies now use mobile banking

Posted by  Category 

There are now more than six million Australians using mobile banking, with the pace of take-up exceeding that of internet banking.

According to a recently released report by financial services consultancy Market Intelligence Strategy Centre (MISC), mobile banking hit the six million user mark after just over three years, while it took nearly four years for internet banking to reach the same number.

“While it previously took internet banking some 15 quarters to pass the 6 million users level, mobile banking has taken 13 quarters to achieve the same milestone,” the MISC report said.

All four of the  have realised the importance of mobile banking, spending billions developing and upgrading their technology for Apple and Android users.

In the lead-up to Christmas,  announced customer log-ins to mobile banking surpassed internet banking log-ins for the first time. The bank also said mobile banking fund transfers exceeded $1 billion a month, despite a $1000 limit on the platform.

What does mobile banking offer?

Mobile banking offers users access to a range of banking facilities on-the-go. Using a smartphone, the user can log in to their banking app, check recent banking transactions, transfer funds, apply for higher credit limits, find ATMs and branches close by, and much more.

Users can choose to be reminded by text if a certain payment is due out of their account, it can warn them of unauthorised transfers, and it can give weekly notifications of the user's account balance.

It's all about convenience and portability – putting banking at the user's fingertips, and negating the need for banking customers to find a desktop or even a branch.

Why the change?

MISC attributed the speed of take-up of mobile banking to a number of factors, including the fact that so many users had already adapted to internet banking, meaning mobile banking may have been a natural progression for many of them.

The rise of mobile banking could also be attributed to the advanced development of mobile technology, with 3G (and now 4G) making mobile internet access faster and cheaper, as well an increased availability of Wi-Fi, and many more smartphones on the market.

A report by the Australian Communications and Media Authority released recently shows just how popular smartphones are with Aussies, with 8.7 million adults using a smartphone in the past 12 months.

The Future of Banking

Providing banking to customers on the go, mobile banking means reduced demand for branch access. This could mean fewer branches will remain open, as customers choose mobile and internet banking for the majority of their banking needs.

Keeping branches open is expensive compared to providing online facilities, which may lead to a number of branch closures. Westpac for one has put down plans to spend $240 million on overhauling its branch network, as a result of increased mobile and internet banking popularity.

The head of 's retail and business bank, Jason Yetton, recently said the reach and technological possibilities of mobile banking “has completely altered the way our customers bank with us”.

And it seems mobile banking is only going to get bigger, with the recent prediction by Juniper Research that the number of mobile banking users worldwide will double to one billion by 2017.

“Mobile banking technology is proven and currently available in most regions of the world,” says report author Nitin Bhas. “It is reinforced by exceptional consumer demand, especially within the developed regions.”

A number of innovations are expected to be added to the mobile banking experience over the next few years.

Such additions could include the use of voice commands (similar to Apple's Siri), an integration of user channels (synching smartphone, desktop, car and television), and the use of intuitive technology (using geographical location and user history, or scanning of QR or barcodes to provide suggestions and information to banking customers).

by shiv kumar

PGDM 2nd sem