Mobile banking will reach over 1.75bn users by the end of 2019, representing 32 per cent of the global adult population, according to new predictions.
Research by analyst firm Juniper Research shows that mobile banking has already been utilised by 800 million users, and growth is being driven by exceptional customer demand.
The report notes that mobile banking technology is already available in most regions of the world, and while demand is highest in the US and European regions, there is also significant growth in China, India, Bangladesh and a wealth of emergent markets where traditional physical banks are less reachable and mobile use outstrips desktop use.
Large retail banks like the Bank of America have already announced that more customers are logging in to their mobile services than through their online system. At the same time, visits to physical branches have decreased over the past two years, and more companies are closing bank branches as demand drops.
"The level of maturity in number and innovation of services being offered in the market across several geographical areas, demonstrates that banks now regard the mobile channel as an indispensable revenue-stream," said report author Nitin Bhas. "However, with the mobile channel becoming a key customer retention strategy, it presents a great challenge to traditional institutions."