While its growth has slowed as it has reached maturity, the functions available through online banking continue to increase, thus driving volumes upward. Although online sales remain at only 1% of total volume, they account for the biggest change; new accounts opened are expected to double between 2010 and 2015. Service and payments volumes through the online channel will continue to grow, albeit holding a steady pace at 86% and 13% of total transactions, respectively.
Mobile banking, just introduced to the mass market starting in 2009, is beginning to revolutionize how customers interact with their banks. Consumers’ ability to check balances from wherever they are is the driving force behind the escalating growth in mobile banking, which has an expected CAGR of 28% through 2015. The comfort with using smartphones for financial purposes will set the stage for widespread use of mobile payments once FSIs and retailers settle on mobile payments standards.
The growth in online and mobile banking is in direct contrast to branch volumes as published in Channel Transaction Volumes: Branch and ATM. Branch volumes along with the number of branches and tellers are steadily decreasing as consumers make the move from full-service to self-service. Online and mobile banking are picking up that activity, and adding even more, as consumers access these channels more often for basic balance inquiries, now something rarely done in the branch.
Understanding consumer usage of the financial institution’s delivery channels is a critical element in future investment decisions. We have refined the methodology for calculating and forecasting transaction volumes using an approach that incorporates both financial institution data as well as consumer preferences for bank interactions. Our research brief highlights the projected volumes for the online and mobile channels in the United States. This is part of a series of channel volume research notes that will be published throughout 2012 and 2013.