12 Fascinating Mobile Banking Statistics and Trends
To remain serviceable and relevant, most competitive banks offer their customers mobile banking. This allows customers to use their smartphones or tablets to complete financial transactions.
Increasing Internet and smartphone users is also crucial to mobile banking’s growth. The latest data by Statista reveals that over 7.1 billion people have mobile phones. With this rise in smartphone users comes a surge in the number of mobile banking subscribers as well.
The following sections outline the statistics that will tell you how formidable this industry is and continues to be.
- 6 out of 10 mobile users choose finance apps over websites.
- The Far East and China have over 928.9 million active digital bank users.
- Nearly 95% believe their banks will protect the online banking platform and their data.
- Digital banking app downloads in 2022 surged 54%, exceeding 26 million.
- 70% of millennials use mobile banking apps actively for various tasks.
- The global mobile banking market is estimated to reach $1.36 billion by 2028.
- Open Banking users will reach 40 million by the end of 2023.
- 38% of users want fingerprint scanning as part of their apps’ authentication feature.
2023 Mobile Banking Statistics
The global mobile banking market is projected to grow at a significant compound annual growth rate (CAGR) from 2021 to 2028. The market expansion is attributed to the growing adoption of mobile banking services. However, there’s a lot more to it.
Keep reading to understand better how mobile banking has gained the trust of millions of people globally.
Mobile Banking Market Size
Allied Market Research reports that analysts expect global mobile banking to reach $1,824.7 million in 2026, with a CAGR of 12.2% from 2019 to 2026. One element that fuels this growth is the increase in demand for self-service.
Not only will this piece of technology allow you to pay bills anytime, anywhere, but also::
- Access the bank 24/7
- Strengthen security
- Track expenses
- Gain clarity about where one’s financial data is going
- Save money easily
These are only some of the mobile banking market growth drivers. You’ll learn more about the numbers it entails in the following section:
1. In 2030, the mobile banking market is expected to reach $3.47 billion in revenue.
(Market Research Future, Globe News Wire)
The global mobile banking market is set to undertake an exceptional growth journey and shift from 2023 to 2030. Such change is not surprising, considering the increasing smartphone penetration that fuels the mobile banking market.
Here are some key market players profiled in the global banking market report:
- Capital Banking Solutions (US)
- Strands Inc. (US)
- Ebanq B.V (Netherlands)
- Fisa System (US)
- Nymbus Inc. (US)
- Temenos Group AG (Switzerland)
- Apex Software Ltd. (Kenya)
- Temenos Group AG (Switzerland)
- Neptune Software PLC (UK)
- Dais Software Company
2. 6 out of 10 mobile users choose finance apps over websites.
(Think with Google)
As technology evolves, more people than ever depend on finance and banking apps in their daily lives. App developers have also taken extra steps to enhance their security and privacy policies to combat the ever-present cybersecurity threats.
With the increased trust of customers in these mobile apps, Google discovered that many prefer using them over other mobile websites. One of the primary reasons for this is that mobile apps offer 24/7 access to users. As such, customers no longer need to connect with their bank directly to make essential transactions.
|Fun fact: The latest trend in mobile was combining mobile banking with the ATM. The world’s largest banks announced plans to roll out card-free ATMs by mid-2016, letting users conduct smartphone transactions.
Global Mobile Banking Statistics
Due to the birth of new financial technology, banks are modernizing their mobile banking apps to deliver top-tier customer experience. In the global mobile banking market, the leading countries are:
Check out the statistics below to see how regions like these expanded their mobile banking market:
3. The Far East and China have the highest mobile banking penetration rate, with over 928.9 million users.
As Southeast Asia develops digital transformation strategies, analysts expect the mobile banking market to reach 974.3 million users in 2024. The region’s average yearly finance app installs have expanded by 32% compared to 2022 and 2023 YTD.
|“The digital banking revolution is here. With more and more consumers turning to online banking, [banks must focus] on developing their app’s UI and mobile marketing. Stay ahead of the curve of this digital boom with airtight analytics.”
4. Nearly 95% believe their banks will protect the online banking platform and their data.
(Enterprise Apps Today)
Most consumers in the US are happy with the security measures their banks uphold to protect their money and data.
Customers have complete trust in their banks as the FDC ensures up to $250,000 of their money is saved in their bank accounts. This policy shows that banks will pay their customers money in case of a security breach in the bank.
5. Digital banking app downloads in 2022 surged 54%, exceeding 26 million.
(Market Research Future, World Bank)
The COVID-19 pandemic has significantly influenced the large increase in digital payments. According to World Bank, over 76% of adults worldwide have an account with the following:
- other financial institution
- mobile banking app
|“The digital revolution has catalyzed increases in the access and use of financial services [worldwide], transforming [how people] make and receive payments, borrow, and save.
Creating an enabling policy environment, promoting the digitalization of payments, and further broadening access to formal accounts and financial services among women and the poor are some of the policy priorities to mitigate the reversals in development from the ongoing overlapping crises.”
6. 70% of millennials use mobile banking apps actively for various tasks.
(CNBC, Chase Media Center)
Mobile banking has changed how we manage our finances. However, not all generations have adopted mobile banking in the same way.
|Generation X: This generation is less likely to get mobile banking apps than other generations. According to Chase, only 46% of Gen X use mobile banking. They typically choose a face-to-face exchange with their bank. They also tend to be more conservative with new technologies.
Baby Boomers: Only 32% of this generation use mobile banking. Like Gen X, they prefer conducting bank transactions in person. They’re also one of the people who are skeptical about the security of mobile banking. However, as Baby Boomers age and find it hard to go to the bank, they slowly adopt mobile banking to manage their finances conveniently.
Millennials: They are known for being tech-savvy. Millennials also tend to have a better relationship with their bank and are less likely to have or even register accounts with different institutions.
Gen Z: This age group is the digital natives and has entirely grown up with technology around them. It’s not surprising that 77% of them prefer to bank online. Like the Millennials, they are also unlikely to have accounts with other bank institutions.
7. Around 39% of consumers utilize banking apps as their primary online banking platform.
(Enterprise Apps Today)
Mobile banking apps are at the forefront of the mobile banking trend, and nearly 39% of account holders use them as their primary banking method. These apps offer a convenient user experience. Companies fully support an end-to-end customer experience, helping their consumers do the following:
- Basic and advanced transactions
- Setting up personalized alerts
- Customization of the app’s range of services
- Quick International fund transfers
- Receipt of paperless bills
- Other services
Not only are these banking apps at the forefront, but they are crucial in boosting the industry’s growth.
8. 32% of the UK’s population made in-store payments in 2023.
(Cyber Crew UK)
During the pandemic, contactless payments in the UK grew by 12% to 9.6 billion payments. The report emphasizes firm growth in using mobile phones and smartwatches to settle payments.
With more people working from home, there’s a constant increase in remote banking as well, providing a convenient way for people to manage their finances.
|Fun fact: Only 24% of women in London had a digital bank account in 2021. As more women prefer not to open an account in digital-only banks, this gender disproportion possibly stays strong among all the digital banking trends.
Mobile Banking Trends and Statistics: Present and Future
More accessible and safer AI-powered mobile banking and open banking are just some of the few elements shaping and will shape the landscape of the mobile banking market.
Here are more compelling trends and statistics to watch out for:
9. The global mobile banking market is estimated to reach almost $1.36 billion by 2028.
(Globe News Wire)
The rising number of unique mobile phone users is boosting the growth of the global mobile banking industry. Rising technological advancements is also driving its tremendous growth.
The number of unique mobile phone users is increasing by 1.8% yearly. There are 5.44 billion unique mobile device users as of January 2023, and close to 1 million new smartphones are coming into use every day.
Banks are also shifting their priority to transactions users can do when they are mobile since the number of mobile banking subscribers is also increasing.
10. By the end of 2023, banks are projected to save $447 billion by AI app usage.
(Business Insider, appinventiv)
The savings include how mobile banking apps use artificial intelligence. We can see this in FinTech as the industry grew from $128 billion in 2018 to $310 billion in 2022.
The benefits AI-powered banking apps provide are the following:
- Better fraud detection
- Financial planning
- Automated transactions
- High-level security
- Better customer services
- Personalized reminders
- Reduced operational costs
Banks cannot deny artificial intelligence’s crucial role in making mobile banking more efficient. According to Accenture, AI can help banks to reduce costs by up to 25%.
To learn more, watch JPMorgan Chase’s Sameena Shah talk about “How AI is Powering the Future of Financial Services”:
11. Users of Open Banking will reach 40 million by the end of 2023.
(Finance Magnets, Light it Global)
Open banking is where financial institutions allow third-party providers to access customer data via open Application Programming Interfaces or APIs. This mechanism enables customers to access various financial services through a single platform because it allows banks to collaborate with fintech firms.
Open banking was the next logical step the financial sector had to take once digital banking became a norm. Allowing access to consumers’ financial info has always been seen as a way to satisfy the client and minimize multi-banking complications.
The 40 million consumers who will use this capacity this year is tremendous because it is more than double the number of users in 2021, which was 18 million.
12. 38% of users want fingerprint scanning as part of their apps’ authentication feature.
(Light It Global)
A survey by Business Insider shows this item as the fourth most wanted feature among users. Mobile banking services always have to come with the most secure safeguards both banks and technology companies can offer, and fingerprint scanning is part of many safeguards being used now.
Another authentication feature is face scanning, and 17% of surveyed users prefer it as a method of logging in, while 15% would like the eye scan log-in. On the other hand, 5% would like to be able to control the app through voice commands.
All of these recent statistics show how bright mobile banking’s future is.
|Did You Know?
Biometrics can be traced back to ancient times when fingerprints and handprints were applied as seals and signatures. The use of biometrics as a tool for identification and security purposes started in the late 19th century with the work of Alphonse Bertillon.
Technology is fast-evolving. The above statistics show that the right blend of innovative technologies, the COVID-19 pandemic, and the proliferation of smartphones drew more customers to shift from traditional to mobile banking. The mobile banking industry has nowhere to go but up in the coming years.
FAQs on Mobile Banking
What is the purpose of mobile banking app?
A mobile banking app allows you to check your balances, view transactions, send and transfer money, and manage your finances without the need to visit the branch or ATM.
What is the disadvantage of mobile banking apps?
Although it rarely happens, as long as we’re connected to the Internet, there will always be potential security risks and tech issues.
What are the top US banks with mobile apps?
Citibank, Wells Fargo, USAA, NFCU, and Bank of America are the top national banks with mobile apps.
What are the most current trends in mobile banking?
The mobile banking features that are the most in-demand in 2023 are biometric authentication, open banking boost, digital-only banks, blockchain, machine learning and AI, and regulatory technology.
What is CAGR?
CAGR, or Compound Annual Growth Rate, is the rate of return (RoR) required for an investment to grow from its beginning to its ending balance, assuming investors reinvested the profits at the end of each period of the investment’s life span.