# The rise and rise of app-only banking
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-02-08
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: The Evolution of Banking: Embracing Fintech
Meta Description: Discover how mobile banking apps are changing the way we manage our finances. Find out why traditional banks are losing ground to technological advancements.
Tags: featured
Tag URLs: featured (https://financedigest.com/tag/featured)
URL: https://financedigest.com/the-rise-and-rise-of-app-only-bankinghtml

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By **Nigel Green,** founder and CEO of deVere Group

The world is changing. Technology is increasingly dominating our lives in almost every aspect.  And this includes the [finance industry](https://www.financedigest.com/the-four-benefits-of-digital-transformation-in-the-finance-industry.html "The Four Benefits of Digital Transformation in the Finance Industry"), with the fintech sector booming. The days of [traditional banks](https://www.financedigest.com/the-role-of-fintech-in-disrupting-traditional-banking-services.html "The Role of Fintech in Disrupting Traditional Banking Services") are, it appears, numbered.

The number of people using [mobile banking apps to manage their finances has soared in recent years](https://www.financedigest.com/reckitt-lifts-full-year-forecast-as-mobility-vaccinations-pick-up.html "Reckitt lifts full-year forecast as mobility, vaccinations pick up"), according to the British Bankers Association (BBA).

A [study detailing](https://www.financedigest.com/fibrin-sealants-market-segmentation-detailed-study-with-forecast-to-2031.html "Fibrin Sealants Market Segmentation Detailed Study With Forecast to 2031") the use of mobile [banking](https://www.financedigest.com/emerging-global-trends-in-digital-finance-and-banking-innovation.html) apps last year reveals a 12 per cent increase on 2015, when these apps were accessed 11 million times a day (or 7,610 times a minute).

The BBA attributes this ongoing [rise in usage figures to “the speed in which people can access their information and make transactions.”  It is easy to see](https://www.financedigest.com/imfs-georgieva-sees-darkening-outlook-for-global-economy-rising-recession-risks.html "IMF’s Georgieva sees ‘darkening’ outlook for global economy, rising recession risks") why this is attractive.

Wherever you have a smartphone, you now can have your bank. [Apps](https://www.financedigest.com/data-reveals-companies-with-female-ceos-are-more-profitable.html) are being increasingly used because of their convenience and security features, and the fact that they are becoming ever more known, there is ever more choice, and people are becoming more tech savvy.

Indeed, [trends within the banking sector are evolving](https://www.financedigest.com/evolving-trends-in-small-scale-single-and-multi-rotor-wind-turbine-market.html "Evolving Trends in Small Scale Single and Multi-rotor Wind Turbine Market") more than ever, with nearly all financial management becoming more straightforward, more accessible and more dynamic with internet and [mobile](https://www.financedigest.com/united-bulgarian-bank-selects-onespan-to-help-fight-social-engineering-and-mobile-malware-attacks.html) app banking.

This increase in accessibility is proven in research carried out by TSB, which found that 45 per cent of customers accessed [mobile](https://www.financedigest.com/united-bulgarian-bank-selects-onespan-to-help-fight-social-engineering-and-mobile-malware-attacks.html) banking whilst watching TV; 18 per cent whilst at work; 17 per cent while in bed; and 11 per cent commuting to and from work.

We are in the midst of a consumer-led revolution when it comes to carrying out day-to-day [banking.](https://www.financedigest.com/emerging-global-trends-in-digital-finance-and-banking-innovation.html) People are embracing new technology that makes their lives simpler.

According to the BBA: “Mobile [banking apps are fast and easy, allowing us to check our balances in, say, three seconds rather than the 30 seconds necessary to login to internet banking or perhaps 10 minutes to travel to the nearest cash](https://www.financedigest.com/central-banks-start-turning-off-the-cash-taps.html "Central banks start turning off the cash taps") machine to check.

With features such as fingerprint ID, allowing people to access their [banking app with just a tap](https://www.financedigest.com/central-banks-start-turning-off-the-cash-taps-2.html "Central banks start turning off the cash taps") or two of their screen – it’s even faster than keying in a four-digit passcode.

The increase of [mobile](https://www.financedigest.com/united-bulgarian-bank-selects-onespan-to-help-fight-social-engineering-and-mobile-malware-attacks.html) internet connectivity speed to 4G, it can be reasonably argued, has also increased the use of mobile banking apps.

Furthermore, taking into account the stats within the [banking](https://www.financedigest.com/emerging-global-trends-in-digital-finance-and-banking-innovation.html) sector, over the past five years, transactions in branches have fallen by 40 per cent, and the rate of their decline is speeding up. Banking via telephone has also decreased, and in 2016, desktop internet banking also fell.

However, [major growth was reported](https://www.financedigest.com/bone-grafts-and-substitutes-market-overview-highlighting-major-drivers-growth-and-demand-report-2018-2026.html "Bone Grafts and Substitutes Market Overview Highlighting Major Drivers, Growth and Demand Report 2018 – 2026") in app-based transactions.

As such, opening a new [bank today](https://www.financedigest.com/stress-testing-why-did-my-bank-go-bust-today.html "STRESS-TESTING – WHY DID MY BANK GO BUST TODAY? ") with branches would be akin to the return of fax machines. The world has moved on.

Consequently, as [technology continues to advance](https://www.financedigest.com/the-diabetic-socks-market-to-prove-its-servility-to-technological-advancements.html "The Diabetic Socks Market To Prove Its Servility To Technological Advancements"), mobile banking [apps](https://www.financedigest.com/data-reveals-companies-with-female-ceos-are-more-profitable.html) will progress and improve. Among the [innovative functions](https://www.financedigest.com/innovation-at-periodic-intervals-to-upscale-the-functional-brain-imaging-systems-market.html "Innovation at periodic intervals to upscale the Functional Brain Imaging Systems Market") will be the option to exchange currency on the fly, with zero applicable interest rates – a particularly exciting option for expatriates residing overseas and people who travel frequently.

It is highly probable that both [investors and users will benefit greatly from ultra-convenient banking](https://www.financedigest.com/investors-trim-bets-for-peak-bank-of-england-rate.html "Investors trim bets for peak Bank of England rate") apps, which, it can be rationally assumed, will in the future see physical banks become obsolete.


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