LONDON–That consumers are moving to alternative payments and disintermediating their credit unions is a staple of many meeting agendas, but one new analysis has found Banking via Facebook messaging has died due to its lack of popularity.
GlobalData is reporting the demise of Banking via Facebook in the U.K. and France comes after few users embraced it. The feature allowed users to set up a payment account enabling them to both send and receive money via the app.
“The Facebook messenger functionality got all of the major U.K. banks on board when it was launched in 2017, but consumer uptake never took off,” said Oliver Wintle, banking analyst at GlobalData. “GlobalData’s 2018 Retail Banking Insight Survey found that 55% of users in France and 71% of users in the UK have never used Instant messaging to complete banking tasks.”
GlobalData said its survey also found users who actively use online banking, at least once a month, state it is their preferred channel to complete different banking tasks, including checking their balance, paying bills, and depositing checks.
Loyalty to Channel
Mobile banking users also show loyalty in terms of their preferred channel; with mobile banking favored for conducting activities such as checking their balance, viewing transactions and statements, and transferring money to other people, GlobalData added.
“On paper, banking via Facebook messaging sounds like a useful innovation, but in practice the functionality lags too far behind other channels to drive consumer adoption,” said Wintle. “With both online and mobile banking allowing users to carry out a wider range of tasks, users do not typically stray far from their banking preferences – something banks must keep in mind when formulating their channel strategy.”