Mobile banking beating physical branches, says report

Online banking trumps physical branches, claims Visa report

A report published by payments giant Visa has found that many consumers are now using mobile devices to manage their banking, and shunning local branches.

According to figures from Visa's third Digital Payments study, seven in ten 'millennial' Brits use their smartphones to keep tabs on their bank accounts.

In the research, more than 42,000 Europeans - including more than 2,000 British respondents - were asked about their attitudes to different forms of payment and money management.

It found that 69 per cent of consumers aged between 18 and 34 have used a mobile banking app, with 53 per cent saying they use one regularly to keep an eye on their finances.

Meanwhile, 38 per cent of said they regularly use an online banking service. These results, Visa suggested, reflect a changing financial services market favouring digital offerings.

UK consumers are also flocking to online payment services to speed up they way they buy products. Over a third (34 per cent) of respondents have made a peer-to-peer digital payment.

Yet again, millennials lead the way. Three fifths (59 per cent) of this category have used an online platform to send money to a family member or friend.

Millennials are also flocking to biometric technologies, such as fingerprint scanners, to authenticate their identities during payment processes.

In the 18-34 age group, 35 per cent said that they prefer using P2P payment services that feature biometric technology, compared with a 30 per cent national average.

One than one-third - 37 per cent - of millennials expect to see banking apps adopt biometrics, and 31 per cent of total respondents agreed with this sentiment.

Jonathan Vaux, executive director of innovation partnerships at Visa, said that mobile technology is making banking easier.

"Mobile technology has revolutionised the retail banking industry. Until relatively recently, simple transactions such as transferring money between accounts meant visiting a bank branch in person," he said.

"We are now seeing banks embrace the flexibility offered by apps to reduce the pain points for customers and allowing them to stay on top of their finances while on the move. In essence, anyone with a smartphone or tablet is now able to take their bank branch with them wherever they go.

He added: "London is one of the fintech centres of the world. By offering both security and convenience via mobile without compromising on customer service financial institutions are capturing the imaginations of younger British consumers.

"As a payments provider we are working with partners of all sizes to ensure we offer best-in-class solutions to meet customer needs and remove the friction from mobile money management."