Are Smartphones Replacing Banks?

Web development company Manchester.

When was the last time you went into a bank branch? You may have to think hard, as you try to remember. Nowadays, there aren’t many occasions when you have to physically go into a building to do your banking. We simply do it online. And as an extension of that trend, we’re increasingly doing it on our smartphones.

Here at Blue Whale Media, the web development company Manchester, we’re keen to share some fascinating new research on this matter.

Statistics from UK Finance in a report called The Way We Bank Now highlight just how much we’re changing. The document reveals that…

  • 71% of the adult UK population (that’s 38 million people) used online banking via a computer or a smartphone in 2017.
  • Out of that figure, nearly 22 million used mobile banking apps.
  • The use of smartphones to do banking has more than doubled over the last four years.
  • There were an astronomical 5.5 billion mobile banking log-ins during 2017.
  • That means, on average, people log into a banking app 275 times a year.

What Does This Mean For The Branches?

We also notice at our website design agency Manchester that the UK Finance report contains figures about the impact on branches. It may not surprise you to learn that people are visiting their banks less often. In fact, an average branch dealt with just 104 daily visits in 2017. In comparison, the average daily visits were 140 in 2012.  

Obviously, this is a telling indication of how our banking habits are evolving. But at our web development company Manchester we think it’s worth mentioning that the daily visits still represents a significant number of people. Let’s remember, for instance, that there are still occasions when it’s helpful to have face-to-face contact with a bank employee, such as a Financial Adviser.

Remember What Happened With TSB?

At our website design agency Manchester, we think it’s worth pointing out that these statistics come in the wake of the crisis that hit TSB. In April 2018, 1.9 million of its customers were affected by a computer meltdown, which was caused by the bank upgrading its systems.

Initially, people couldn’t log into their accounts, and when they could they sometimes found that money that they were owed hadn’t been paid in. It turned into a big financial headache – for the account holders and the bank itself.

What About Security Concerns?

UK Finance represents nearly 300 firms involved in UK banking and its report also said that 512 million text alerts were sent by banks last year. But this way of communicating seems susceptible to fraud. One press report, for instance, explained how a TSB customer, suffering from cancer, had £29,000 stolen after receiving an SMS message that seemed authentic. Fortunately, the bank has agreed to refund the money.

But overall, there are many reasons to embrace the convenience of online banking. Stephen Jones, Chief Executive of UK Finance, has said: “Technology is changing the way we communicate, work and shop and, as a result, the way we choose to manage our money. The industry has responded to this seismic social change, which is very much led by customers looking to make the most of digital innovation for convenience.” 

Call Your Web Development Company Manchester Today

Here at Blue Whale Media we’re fascinated by how technology is changing and how it can benefit our lives. Call us for all your web development needs – whether that’s the creation of a brand new website or an impressive app.