Javelin’s 2021 digital banking forecasts show that growth in mobile banking adoption is tapering off. Online banking is still the workhorse.
San Francisco, Calif., Dec. 4, 2018: The days of explosive growth in mobile banking adoption are over. Following the Apple iPhone’s introduction, 30-day mobile banking adoption doubled twice in five years - between 2008 and 2010, then again between 2010 and 2013. 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 tapering off but also that adoption will remain far short of online banking for the foreseeable future.
Mobile banking adoption reached 53% this year and will gradually grow to 58% in 2021, a compound annual growth rate (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 Mark Schwanhausser, Director of Digital Banking and author of the report.
Javelin’s mobile banking forecast heralds a turning point that 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.
The report, The ‘Big Bang’ of Mobile Banking Adoption Is Over: Digital Banking Forecast 2021, takes a deeper look at mobile banking adoption, challenges facing digital banking strategists and fintech vendors, and provides insights into the trends and implications for digital banking success.
About Javelin Strategy & Research
Javelin Strategy & Research, a Greenwich Associates LLC company, is a research-based advisory firm that helps its clients to make better-informed business decisions in a digital financial world. Our analysts offer unbiased, actionable insights and unearth opportunities that help financial institutions, government entities, payment companies, merchants, and other technology providers. (Twitter: @JavelinStrategy)