Smartphones replacing bank branches for millennials
NEARLY seven in every 10 British millennials are now managing their money on the go, by using their mobile phone.
That’s according to the latest digital payments study from Visa, which surveyed thousands of people on their attitudes towards alternative forms of payment and money management.
Around 69 per cent of millennials – those aged 18-34 – said they have used a mobile banking app, with more than half (53 per cent) doing so on a regular basis. This compares to just 38 per cent of total respondents from across Britain.
Visa suggested that the large numbers of people opting to bank with their mobiles was down to a combination of increased investment in digital offerings from high street names, as well as an increasing number of app-based challenger banks entering the market.
According to research from the British Bankers Association and EY, around 19.6 million people used mobile banking apps in 2016, up 11 per cent from the year before.
However, peer-to-peer lending platforms have been slow to enter the app market, preferring to focus on the overall web experience.
Not only are young people more inclined to bank on the move, they are also more comfortable sending payments using their mobile phones. Around three-fifths (59 per cent) said they have sent money this way to family or friends, compared to a third (34 per cent) of the nation as a whole.
Jonathan Vaux, executive director of innovation partnerships at Visa, said that mobile technology had “revolutionised” banking, noting that simple transactions such as transferring money used to require attending a bank branch in person.
“We are now seeing banks embrace the flexibility offered by apps to reduce the pain points for customers and allowing them to stay on top of their finances while on the move,” he said. “In essence, anyone with a smartphone or tablet is now able to take their bank branch with them wherever they go.
“London is one of the fintech centres of the world. By offering both security and convenience via mobile without compromising on customer service financial institutions are capturing the imaginations of younger British consumers.”