The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
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From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.x
Banking by smartphone and tablet has become the leading way customers manage their finances, as mobile banking overtakes branches and the internet as the most popular way to bank.
New research from CACI for the BBA shows that customers will use mobile devices to check their current accounts 895 million times in 2015, more than the 427 million branch interactions. By 2020 they are forecasting that customers will use their mobile to manage their current account 2.3 billion times – more than internet, branch and telephone banking put together.
These findings are published alongside the second edition of the Way We Bank Now, a joint report by the BBA and EY, which reveals that UK customers have downloaded banking apps on 22.9 million occasions by the end of March this year – a rise of 8.2 million in just one year.
Customers moved £2.9 billion a week using banking apps in 2015 – up from £2 billion in 2014.
The Way We Bank Now report also reveals that by March of this year there were:
Anthony Browne, Chief Executive of the BBA, said:
“Technology is changing our lives and banking is no different – it is now easier than ever for us to check our balances, pay our friends and manage our money. The rapid take up of apps and mobile banking appears to be a real game changer for the British public.
“Our report shows that there is much to look forward to. Biometric security features will allow us to get hold of our money faster and without going through the rigmarole of passwords and PIN codes. The possibilities of using data analytics to give customers greater insight into how they spend their money and the best offers, services or products is very exciting too.
”It is vital that the government invests more in 4G and high-speed broadband to ensure that as many people as possible can be included in the revolution that is sweeping through banking.”
David Ebstein, Head of Digital for Financial Services at EY, comments:
“The British public is voting with its thumbs. Being mobile-enabled is a must, not a maybe, and banks that don’t engage properly with mobile channels risk losing relevance in customer’s lives. The next frontier of innovation will be delivering an exceptional customer experience through mobile, across products and services, and going beyond banking.
“The mass migration to mobile banking is an opportunity for banks to better engage with customers and regain trust customer by customer. Competition is intensifying, and successfully joining the dots between mobile, internet and branch banking could make the difference between winning and losing customers.”
For more information contact the BBA Press Office on 020 7216 8989 or Sarah Tavakoli at EY on 020 7951 9882.
The next instalment of the BBA EY Way We Bank Now work, called a World of Change, explores the major banking technologies introduced in the UK over past year and looks at other successful financial innovations introduced overseas, including cheque imaging technology, augmented reality and sophisticated data tools that give customers and businesses greater insight into their finances.
The report also features interviews with many of the leading digital experts across the banking industry and reveals their thoughts about what might be the next innovations available to British customers.
Notes to editors:
1. CACI’s analysis and forecasts of how customers interact with their banks
i) Current account interactions
2. Innovation across an industry
|Total number of banking apps downloaded to date||N/A||14.7||22.9|
|Amount transferred by app per week (£s)||2,067||2,927|
|Mobile log-ins per week||9.1||18.6||73.8|
|Internet banking log-ins per week||45.1||60.9||66.9|
|SMS alerts per week||N/A||9.1||9.4|
|Telephone banking use per week||4.4||4.3||4.2|
|Branch transactions per week||12.7||11.9||N/A|
This year’s Way We Bank Now report, titled World of Change, has had contributions from many banks across the BBA’s membership, who have submitted views and statistics on the way British public spend, move and manage their money is changing.
Examples featured in the report include:
3. World of Change
This report also highlights popular forms of consumer friendly technology that has been adopted in other countries. These include:
4. The Way We Will Bank in the Future
World of Change also explores what the next generation of retail banking could look like, featuring interviews with the banks’ senior digital experts who discuss topics such as data analytics, partnerships with technology companies, wearable technology and biometric security features.
5. Access for all
The BBA is urging ministers to invest more heavily in 3G, 4G and high speed broadband to allow more and more customers to take advantage of mobile and internet banking.
According to CACI’s research for the BBA:
Of the 49.4 million adults living within Great Britain, 1.1% have poor internet access*
This equates to 530,000 adults with limited internet speed, of which 330,000 say they would be willing to bank online
These 530,000 adults have: