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The way we bank is radically changing too

The British Bankers’ Association released their The Way We Bank annual report last Thursday. It was interesting. Here are the key highlights:

  • Over the past five years customers’ activity on banking apps rocketed by 354%, with apps now an increasingly popular way to access current accounts rising from 21% of access in 2012 to 61% by the start of 2017.
  • There are almost 20 million users of mobile banking across the UK in 2016, making 159 logins every second.
  • People are increasingly using banking apps to access a broader range of services such as savings, credit cards and mortgage/investments accounts, rising by 30%.
  • There were 4.4 million customer-to-bank contacts made using web chat in 2016 – 510 every hour.
  • Video chats are also growing in popularity, up 92% during 2016. 434 million text alerts helped customers track their spending and be better informed about their bank balance.
  • Nearly two-thirds of cards are now contactless. Transaction volumes and spending soared by 174% and 225% respectively during the year. With more than 450,000 contactless terminals now spread across retailers from pubs to supermarkets across the UK, 2016 might be seen as the year a quick ‘touch’ on a card reader started to replace notes and coins altogether.

New technology is transforming the way that we handle our finances, from apps which turn our mobiles into a bank branch, to text alerts, cheque-imaging, biometric identification and contactless cards. ‘Banks on wheels’ physical mobile branches are helping some customers in rural communities get better bank access. These changes have empowered customers in the way they choose to manage their finances.

Greater choice in communication is also creating new, easier and faster interactions between customers and their banks. People can now access a range of services on their sofa, on the go or at work.

These innovations are helping us to manage our finances more easily. Whether we want to visit our local bank branch, use a mobile or internet-bank, there are more ways we can now choose to access and manage our money than ever before.

You can download the full report or listen to a summary from the Steve Wright show on BBC Radio 2 by clicking below.

About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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  • St Chit

    Interesting stuff – is there any correlation to the quality of the interactions?

    Are we, the general public, now better at managing our finances?
    Do we have less unexpected overdrafts?
    Do we borrow more responsibility?
    Or do we just gorge on the data as well as the debt?

    As you posts often indicate, will it be the rise of AI that will deliver those improvements?

  • Tabitha

    This is so true for not only banks but for brokerage accounts. Many people are opting to do their own investing and skip the fees from the advisers. Virtual banks are really becoming a good way to go as well.