The days of explosive growth in mobile banking adoption are over, a new study suggests. Javelin’s 2021 digital banking forecasts reveal that mobile banking adoption is tapering off. In contrast, online banking remains the workhorse, according to the analyst.
Javelin Strategy & Research’s new report, The ‘Big Bang’ of Mobile Banking Adoption Is Over: Digital Banking Forecast 2021, shows that not only is growth in mobile banking slowing significantly, but also that adoption will remain far short of online banking for the foreseeable future.
The analyst estimates that mobile banking adoption stood at 53% and expects a more gradual growth to 58% in 2021, for a CAGR of just 3.1%.
“It was only a matter of time before mobile banking adoption slowed, as smartphone usage becomes ubiquitous and the pool of potential converts to mobile banking becomes smaller,” said Javelin.
This is a turning point in that it underscores the need for digital banking strategists to shift their focus from basic adoption to deepening engagement.
“Success will be increasingly measured by whether financial institutions offer the right experience and feature set to build relationships and trust,” said Emmett Higdon, director of Digital Banking at Javelin Strategy & Research.
First published in Fintech Innovation