Monday, 10 August,New Delhi: India has the youngest population of mobile banking users across the globe at a median age of 30, as opposed to 32 in the US and 39 in Europe, a research by KPMG and UBS says.
The report warned that banks which do not have clear mobile banking strategies may lose customers and cross-sell opportunities in the short-term, as well as risk jeopardising competitive advantage.
“Indian customers demonstrate the highest likelihood of changing banks driven by the availability of better mobile banking services,” the report said.
Mobile banking has risen significantly in emerging market economies like India and China, and the number of such users globally is expected to double in the next four years, the research says.
According to the research, adoption of mobile banking by new customers is now entering an exceptionally “rapid phase”.
“The number of mobile banking users globally is forecast to double to 1.8 billion, over 25% of the world’s population, in the next four years,” the report said.
The report noted that “adoption rates are highest in developing countries – reaching about 60-70% in India and China – rather than developed nations such as the USA, Canada and the UK.”
As per the report, banks are increasingly adopting ‘mobile first’ strategy and large banks are already acquiring technology start-ups to keep up with the rapid pace of change and growth of challenger banks.
However, mobile banking includes challenges like cyber security and lack of collaboration with developers.
“Customer experience and frictionless engagement will likely remain key drivers for adopting mobile banking. The winners may have to invest as much as in creating a strong perception of security as they may be required to implement technical security measures,” Akhilesh Tuteja, Partner and Head of IT Advisory services at KPMG India said.