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BizReport : Trends & Ideas archives : October 26, 2016


Nielsen research reveals countries least likely to embrace mobile-only banking

Brits and Kiwis just can't let go of physical bank branches and are among the countries least likely in the world to embrace mobile-only banking, according to new global research from Nielsen.

by Helen Leggatt

New Zealand (where I live now) and Britain (where I used to live) are among the top 10 countries in which people are least likely to try mobile-only banking. Despite both nations being tech-savvy with good banking and mobile infrastructure, 65% of people in New Zealand and 63% in Britain say they are unlikely to use mobile-only banks - banks which have no physical location but are instead serviced entirely via mobile apps.

Just three countries, France (68%), Belgium (66%), and Hungary (66) are less likely than Brits or Kiwis to use mobile-only banking, according to Nielsen's 'Global Mobile Shopping, Banking and Payment Survey'.

Concern about security is what is stopping most people in Britain from trying mobile-only banking (58%) while 1 in 5 say they prefer to visit a branch. In fact, banking customers in the UK are 50% more likely than the global average to prefer visiting a physical bank location.

"However," says Stuart Tagg, Nielsen Europe's financial services leader, "there's still a good opportunity in Britain, particularly if banks can overcome the general unease about sharing financial information digitally by convincing people that mobile banking is as secure as going into a branch. It's then that the sheer convenience of mobile banking could make many reconsider."

There is another way in which people might be persuaded to use mobile-only banking, says Tagg, and that's by offering higher interest rates. According to Tagg, this tactic would increase the number of people willing to try mobile-only banking by 2.5 times.

Meanwhile, it is in developing countries where mobile-only banking is most likely to take off, says Nielsen, because this is where the majority of the population don't have bank accounts or are unable to gain easy access to a bank's physical branch. In India, for example, 46% of people said they were highly likely to use a mobile-only bank, followed by Indonesians (37%).

Recent figures released by Juniper Research reveal that, this year alone, 1.2billion people will use their mobile device to conduct mobile banking tasks, albeit not via mobile-only banks. That figure, says Juniper, will increase to 2billion globally by the end of 2021.

Their report also shows that, in many markets, mobile logins now exceed desktop. In the UK the British Trade Association for Banking (BBA) reported that while 4.3million people per day logged on to Internet banking that figure was 11million per day for banking apps.






Tags: banking, financial technology, mobile, research








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