LONDON–A new analysis has found the mobile channel continues to lag in usage among consumers 65 and older.
GlobalData said its 2019 Channel Analytics survey found that In the 65+ age group in the U.K., only 24% of consumers use mobile banking while 75% use online banking. But the company is forecasting that as mobiles reach maturity it will emulate the online channel, where usage is much more consistent across life stages and age groups.
“Mobile banking’s popularity is heavily skewed towards the younger segments in the U.K.,” said Resham Karira, retail banking analyst at GlobalData, commented: “It is crucial for banks to invest in their mobile capability, as the channel is expected to play a significant role in the near future.”
Satisfaction with digital channels is much higher than for traditional channels but given that mobile banking is still relatively new compared to online, satisfaction with mobile is impressively high, GlobalData said.
‘Increasing Breadth’
“This reflects the potential of the channel and the increasing breadth of functionality it can offer,” Karira explained. “This will improve further as banks continue to develop and enhance their mobile capabilities. There are big incentives for providers to move older customers over to this channel. Improved engagement with consumers, particularly older generations, through better interaction will encourage customer retention.”
According to the company’s analysis, mobile, together with online, will also help to free up the branch and telephone channels to offer more value-added services. The mobile channel has emerged as a potentially key differentiator between offerings and may help providers attract new customers.