Technological developments have offered people alternate ways of running their day-to-day errands and duties, being more effective than the traditional method. Analysis shows that mobile banking is set to become a more popular way than going to a bank branch by 2021 in the UK.
The study predicts that by 2021, the number of British people who make use of high street bank branches will decrease, as a consequence of mobile banking becoming a more preferred way of managing bank accounts. UK Finance showed how more than two-thirds of adults in the UK made use of online banking in 2018. Moreover, 48% used mobile banking. It is assumed that the number of bank branches users will decrease by 55%, as mobile banking use will go up by 71% by the year 2024.
Therefore, some of the biggest banks in Britain have started to rethink their investments in physical branches. Which? illustrated how the past 30 years have shown how two thirds of Britain’s bank branches more than 12,500 branches, were closed. The financial crisis in 2008 was also partly responsible for the decline of bank branches. However, the more efficient use of mobile banking, online banking and apps also had an impact on physical branches.
The decline in physical branches may not be seen as good news by the elderly or those who are not that tech-friendly, who would prefer to go to a banking branch physically. Which? head of money Gareth Shaw stated that,’ While digital banking is on the rise, there is still widespread appetite for dedicated bank branches that provide the full-range of financial services and vital access to cash.’ UK Finance added on saying, ‘But technology is not for everyone and maintaining access to cash is vital to ensure no customer is left behind.’
Recently, some companies have invested in a banking licence, adding banking to their list of services without having a need for a physical bank.