Mobile banking needs to be more accessible for over 65s

Banks need to invest in their mobile banking channel to make it more mainstream, according to GlobalData.

In its 2019 Channel Analytics survey, the firm revealed that just 24 per cent of over 65s use mobile banking, while 75 per cent have adopted online banking.

As mobile banking reaches maturity it will emulate the online channel, where usage is much more consistent across life stages and age groups, according to GlobalData.

Commenting on the findings, GlobalData retail banking analyst Resham Karira said: “Mobile banking’s popularity is heavily skewed towards the younger segments in the UK. 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.”

Furthermore, the study highlighted that consumer satisfaction with digital channels is much higher than for traditional channels and, despite its young age, the satisfaction with mobile banking is particularly high.

“This reflects the potential of the channel and the increasing breadth of functionality it can offer. This will improve further as banks continue to develop and enhance their mobile capabilities,” Karira added.

“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.”

The firm claimed that the increased usage of mobile and online banking will free up the branch and telephone channels to offer more value-added services, with banks needing to encourage older homeowners to utilise these channels to realise this benefit.

Karira concluded: “Legislation allowing banks to process cheque images via mobile and other technologies such as chatbots, biometric authentication, tailored expenditure monitoring, and analytics-based alerts have all contributed to increased consumer satisfaction levels.”

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