Banks that are not prepared to handle bill payments electronically via wearables, mobile devices and PCs will likely alienate a good number of their customers. New findings from research firm Juniper Research show that the number of household bill payments made via PCs, tablets and mobile phones will exceed 20 billion this year, representing about 16 percent of all global consumer household bills.
The trend is being driven by a growing acceptance of transactional digital banking and the dramatic increase in mobile banking adoption overall. The report shows that use of digital banking will continue to rise over the next five years as users opt for a multiple and immediate channel approach and use the mobile channel increasingly to manage their accounts.
The new report, “Mobile & Online Banking: Developed & Developing Market Strategies 2014-2019,” finds that despite the higher numbers of mobile users making use of bill payment and presentment services, PC and tablet users produced the higher transaction values. This highlights the importance of larger-screen platforms for banking and bill payments, the report says.
The report finds that over the past 12 months vendors have been working toward integrating a new channel into the mix: smart wearable devices.
“Customers, particularly those of Gen Y, are attracted to banks that offer innovative and exciting new services,” Nitin Bhas, head of research at Juniper Research and author of the report, said in a statement. “Banks are eager to capture these customers early and achieve lock-in’. The ability to offer cutting-edge banking applications and services is also a way for banks to secure customer loyalty and increase customer satisfaction.”