SMS alerts could be on the rise as mobile banking grows

A quarter of Europeans ‘actively’ use mobile banking, compared to only 13 per cent who log into their accounts via tablet devices.

New research from Forrester found that 25 per cent of Europeans use mobile banking, up from the nine per cent who did so in 2011. The ways in which smartphone owners communicate with their bank has also changed, with 40 per cent of mobile banking customers receiving SMS alerts relating to their accounts.

Of those who had signed up for mobile banking, more than three quarters checked their balances within the past three months.

This correlates with a recent report from UBS Evidence Lab, which claimed that two billion people around the world would be using their mobiles to bank by 2019.

Despite these benefits, banks still need to reinforce the security of their systems, as 32 per cent of Europeans are still unsure the systems are secure enough. Meanwhile, 30 per cent said they don’t yet trust using their phones for banking.

Commenting on the trends, mobile banking lead at KPMG, David Hodgkinson, told “Banks must adapt or die.

“Mobile banking is clearly supplanting all other channels as the main portal between the bank and the consumer. Many banks have already risen to the challenge and invested in new infrastructure and pioneering initiatives, but others must follow suit and commit to building both immediate propositions and ongoing capability to keep up with the pace of change.”