Shorter Lines at the Bank Ahead: Mobile Banking on Track to Double

For anyone who’s ever waited in line at the bank, the rise of mobile payments is about to make your life a little easier: a new study suggests that—at least in the U.K—mobile banking users are expected to double to 32.5 million by 2020. That’s going to have a big impact not only for mobile users, but also for banks going into the near term future.

Naturally, with more mobile devices being put to use in banks, the simplest procedures cam be streamlined or done entirely on your phone, resulting in shorter lines and reduced wait time at branches. Why, after all, would those who use mobile devices routinely want to go into a bank branch for anything more than the most complex questions? That’s a good sign for those who carry out standard deposit / withdrawal business in person. But there’s a problem here lurking under the surface; if enough users make the move to mobile banking, then what motivation does the bank have to keep a branch office open? That might mean closures, and in turn, job loss.

The banks, meanwhile, will have a much greater issue ahead. Mobile banking doesn’t just mean banking from a smartphone or tablet. Indeed, one of the biggest disruptions to hit the market is the use of wearable devices in banking. With a wearable device, banks could in theory tell exactly who a customer is when they walk in the door. In theory, it may be possible to connect a bank account to a wearable device like a smartwatch and route transactions through that device. People will essentially be out at a restaurant or any place similar, and then say “Pay (insert name here) $35 from checking”, and the transaction will be carried out as though a check had been written.

With the sheer number of changes afoot, banks will be hard pressed to find ways to provide modern services yet still remain relevant to the customer. When credit limits can be partially determined by health parameters—not to mention length of mortgages and car loans—will there still be interested users? Will bank customers flock to less connected banks as a result, concerned about the level of monitoring and the like going into people’s lives? Already, some banks have proven concerned about the growth of services like Apple Pay and Samsung Pay; what value does a bank’s checking account have when a bill can be paid from a mobile interface?

The key takeaway here is that for banks and their customers alike, change is coming. Banks will have to reconsider entire branch layouts, staffing levels and beyond, and will have to ask a lot of hard questions in a very short span of time. Customers, meanwhile, are likely to have a lot more choice ahead, at least in the opening days. But then some hard questions—like just how much intrusion you’re willing to accept—may likewise come up here. It’s going to pay off to start considering how you’ll personally adapt to the various changes mobile payments present, because one way or another, it’s coming.