News

Study: Use of mobile by young customers will drive change in retail banking

A new study predicts that with the next five years mobile will become the No. 1 channel for millennials and younger consumers.

February 13, 2015

A new report published today by The Economist Intelligence Unit explores how mobile technologies are transforming the retail-banking industry. "Redefining banking to survive and thrive in a digital world," sponsored by SAP, finds that banks must embrace mobile technologies if they are to satisfy and hold on to their customers in the future. 

An EIU executive survey shows that 82 percent of retail bankers agree or agree strongly that in the next five years mobile will become the number one channel for millennials and younger consumers — banks’ future customers. Mobile services could also help open up developing countries and the underbanked and unbanked as more attractive markets to banks.

Other findings from the report:

• today only 15 percent of transactions are conducted via mobile devices — that figure will to rise to 25 percent in five years, according to an EIU consumer survey;
• the mobile invasion is forcing banks to navigate a complicated world of new partnerships and rivalries. Emerging partners include mobile phone companies, retailers and social-media firms;
• bankers believe they must offer more compelling mobile experiences to customers; 69 percent believe quality must match that provided by big Internet companies;
• banks will move to provide more advanced mobile features, such as spending analyses and wealth-management tools.

Download the complete report and accompanying infographic.