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Peer2Peer Finance News | September 20, 2017

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Customer use of banking apps soared in 2016

Customer use of banking apps soared in 2016
Suzie Neuwirth

PEER-TO-PEER lenders that have not developed a mobile app might be missing a trick, as new research shows that banking app transactions soared by 57 per cent last year.

A report released on Thursday by the British Bankers’ Association (BBA) and accountancy firm EY also found that 19.6 million people used banking apps in 2016, an increase of 11 per cent on the previous year, equating to 38 per cent of the UK adult population.

The number of customers using apps to manage their current accounts grew by 12 per cent last year, but the most significant growth was in customers checking their mortgage or investment accounts, corresponding to an 86 per cent increase in 2016.

Read more: Banks boost digital capabilities with new fintech hubs

The report sourced data from eight of the UK’s largest banks and building societies.

As Peer2Peer Finance News recently reported, the P2P sector has been slow to enter the app space, instead opting to focus on the overall web, desktop and mobile user experience. Of the biggest UK P2P players, only Funding Circle has an app for investors, while Zopa has one in development.

Read more: Collateral to launch P2P app for investors and borrowers

“Customers’ appetite for using technology to manage their money on the move is showing no signs of abating, with banking apps now the principle means by which we access our current accounts,” said Eric Leenders, BBA managing director of retail and commercial banking.

“And this doesn’t appear to be a fad with more and more people moving beyond payments, increasingly using apps to access a broader range of banking services, such as savings, credit cards, mortgage and investment accounts.

“Latest developments in the consumer-led digital revolution are empowering customers to manage their finances more conveniently.”

Read more: P2P lenders are investing in IT to stay ahead

Dan Cooper, lead partner for banking and capital markets at EY UK, said: “This latest report highlights how customers are increasingly using digital banking, which in turn is driving innovation.”