Demand for app-only banking is rocketing across the United States.
According to a recent Bank of America survey, 54 percent of people use mobile as their main banking option, including 75 percent of millennials who took part in the poll. Up to 35 percent of those claim to use the app at least once a day, with 84 percent stating they use a mobile banking app at least once a week.
The stats speak for themselves.
Indeed, since we launched our challenger bank, deVere Vault in April, we have been astounded by the level of interest shown in the app. In fact, we forecast over 40,000 individuals will download the e-money app by the end of this year, with a considerable portion of this demand from the U.S.
Of course, we live in a rapidly-changing world. Technology is taking over nearly every part of our lives. Particularly within the fintech sector.
As it stands, the days of traditional banking appear to be numbered. Financial management is much more straightforward, accessible and unquestionably more dynamic using mobile banking.
The benefits to app-only banking are extensive.
Perhaps the standout advantage is convenience. Your smartphone, in essence, is your bank. You have access to it 24/7. Wherever you are in the world, and whatever time it is, you can take control of your banking.
You can review your account; send transfers; check balances; pay bills, block stolen cards and monitor your transaction history in a matter of seconds. Indeed, the BoA survey found that 85 percent use their mobile banking app to check balances and statements; 58 percent use it to transfer money; and 52 percent to pay bills. Naturally, this is much more convenient than travelling to a branch or the nearest ATM.
As such, the efficiency and expediency of mobile banking is undeniable. Not only does it save time, it drastically reduces paperwork for banks and their customers.
Another fundamental advantage of app banking is fraud reduction. Users tend to monitor their account/s far more frequently from their smartphone or tablet than they would by going to their branch. This allows any anomalies or fraud attempts to be detected more quickly.
Indeed, according to the survey, 71 percent of those questioned took action after receiving an alert from their app in regard to a possible fraud detection.
Furthermore, banking apps have advanced encryption technologies to ensure your details are secure.
Your banking details will remain safeguarded even if your phone is stolen or misplaced. ID verification checks and several passcodes protect your sensitive banking information. Additionally, you can disable your smartphone or tablet remotely from your PC or laptop.
Therefore, demand for mobile banking is set to enter stratospheric levels of growth over the next few years. Initial predictions suggest there will be 1.8 billion users within just two years.
Moreover, as an increasing number of people are travelling more, living international lifestyles and business becomes far more globally-focused, the only way is most definitely up for the mobile banking sector.
Nigel Green is founder and CEO of deVere Group. One of the world’s largest independent financial advisory organizations, de Vere does business in 100 countries and has more than $12 billion under advisement.
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