UK customers are using mobile and internet banking for transactions worth nearly £1bn ($1.71bn) a day, a new report by the British Bankers’ Association (BBA) and Ernst & Young has revealed.
The second Way We Bank Now report also shows that millions of customers are using contactless cards, payment by mobile and SMS balance alerts. In 2014 the rate of adoption of digital banking has grown strongly with more than 15,000 people downloading banking apps a day, according to the report.
The report also said the technology was used for transactions worth £6.4bn a week, an increase from £5.8bn in 2013, with internet banking services typically receiving 7 m log-ins a day.
In addition, the report forecast spending on contactless cards would rise to £6.1m a week this year from £3.2m in 2013.
BBA chief executive, Anthony Browne, said the report highlights how enthusiastically the UK citizens are embracing mobile banking, contactless cards and a range of other consumer-friendly banking technologies.
"This study shows that banks have, are and will continue to compete against one another to offer customers innovative technology to win your custom," Browne added.
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By GlobalDataDespite warning that the branch use is falling sharply in the wake of digital banking, the report insisted that the high street outlets will remain important when a customer takes out a mortgage, wants to assess their financial options or resolve a complaint.
The BBA said 2,274 bank branches have been refurbished in the past two years, underlining the commitment to high street outlets.
Mike Davies, vice president EMEA North, GMC Software Technology commented: "The new research by the BBA highlights the existing trend we are seeing in regards to mobile and internet banking. Customers are demanding access to their information at a time and through a device of their own choosing.
"Whilst banks need to cater to this change, they must also ensure that digital services provide effective customer engagement. With 65% of consumers not believing their online banking delivers an effective level of customer service, banks need to make serious changes."
Furthermore, a poll conducted for the BBA in June 2014 and published alongside the report shows that 77% of consumers use online or mobile banking at least once a month. Only 16% of those polled said that they never used online or mobile banking.
"New technology allows for more control over how individuals manage their finances, encouraging more responsible spending. Across the UK, early adopters of the online platforms and the latest mobile technology are already seeing the benefit, said Chris Dunne, payment services director at VocaLink.
"This is especially true of those who live in rural areas that, over the last decade, have seen a steady decline in the number of bank branches available to them."