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Mobile banking overtakes debit and credit card payments globally

Banks were spending less in 2014 marketing their services on mobile despite the platform increasingly being used to process transactions, according to research from BuzzCity.

The study of 3,300 global respondents found that 42 per cent of mobile owners make financial transactions on their smartphones, up 60 per cent from 2013. However, a full 35 per cent of respondents failed to embrace their smartphones for such practises.

Of those who do not partake in online banking, a third said they will adopt the technology soon. A quarter were concerned about the security implications, just under a quarter had an unsuitable mobile and 15 per cent claimed mobile banking was not yet made available to them.

Internationally, despite the rising uptake of mobile banking, TV remained the most influential media according to 42 per cent of respondents, surprisingly eclipsing mobile advertising.

Eighteen per cent heard about mobile banking directly from their banks and a further 17 per cent from their mobile operator via text. Mobile advertising only accounted for 16 per cent of respondents.

Nearly a quarter (24 per cent) of mobile surfers now make mobile payments, overtaking credit card (17 per cent) and debit card (12 per cent) users for the first time ever.

DR K.F. Lai, founder and chief executive at BuzzCity, said: “This skewed approach that many banks place on TV advertising is failing to engage their own customers.

“By focusing all efforts on just one channel of communication and not the actual devices that their customers are using every minute of every day the banks are clearly missing opportunities. This is integral to building relationships and trust with their audiences.”

Below are the firms UK mobile findings although a more international outlook is available in the report which can be downloaded here.

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