UK banking app transactions surge 57% in 2016

Customer appetite for banking apps in the UK shows no signs of abating

UK banking app transactions surge 57% in 2016

Customer appetite for banking apps in the UK shows no signs of abating as number of transactions through apps surged by 57% in 2016, a report by the British Banking Association (BBA) and EY has found.

According to the report, a total of 932 million transactions were made using banking apps, equating to 30 transactions per second. Between 2012 and 2017, customers’ activity on banking apps has surged by 354%.

More than 19.6 million British people used banking apps last year, a rise of 11% compared to 2015.

The study found that customers are using banking apps to do more than just check their account balance, with more people now using apps to manage their savings, credit cards and mortgage or investment accounts.

Over 434 million text alerts were sent by banks to customers in 2016, a jump of 18% on the previous year. Nearly 4.4 million customer-to-bank webchats took place in 2016, an surge of 24% on 2015.

During 2016, contactless card spending surged 225% as one out of every four card payments used this technology, the report says.

BBA managing director for retail and commercial banking Eric Leenders said: “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. 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. Whether we want to visit our local bank branch, use a mobile or internet-bank, there are more ways we can choose to access and manage our money than ever before.”

EY UK banking and capital markets lead partner Dan Cooper added: “This latest report highlights how customers are increasingly using digital banking, which in turn is driving innovation. This growing customer comfort with digital financial services sets the scene for the launch of Open Banking in 2018, when both banks and other providers will have the opportunity to present customers with greater choice and control over their financial lives.”