The money being moved via digital banking technologies in the UK will increase by 50% over the next five years.
The research comes from banking software maker Fiserv, who found that mobile apps currently account for £1.7bn moved every week in the UK and online banking £6.4bn. This total is said to increase however from £8.1bn to £12.8bn as mobile transfers double to £3.4bn and online banking reaches £9.4bn by 2020.
The research also predicts that the number of mobile banking users will grow from 17.8 million to 32.6 million by 2020; and that the number of adults using online banking will increase from 27.7 million to more than 35 million.
This recent increase in mobile banking is a perfect opportunity for challenger banks to eat into the retail banking market share of the high street giants. New banks can focus on delivering apps that meet customer demand as customers continually adapting to mobile banking.
The Future Trends in UK Banking Report, completed by the Centre for Economics and Business Research found that 34% of UK adults bank on their mobiles with an expected increase to 60% by 2020.
Fiserv said: “This projected increase of 14.8 million mobile banking users over the next half-decade represents a significant opportunity for challenger banks to bring their innovative business models to the market and for existing banks to add digital services to cater to this future majority.”
A separate global study conducted by Bain & Company involved 80,000 people and found that mobile accounted for about a third of financial transactions in 13 out of the 22 countries surveyed.