The number of mobile banking users is forecast to double to 1.8 billion by 2019, accounting for more than 25% of the world’s population, according to KPMG.
A report by the company on mobile banking trends, using primary survey data from the UBS Evidence Lab, finds that while mobile is already the largest banking channel by volume of transactions, its adoption by new customers is entering an exceptionally rapid phase.
Over the next five to 10 years, mobile banking will see dramatic growth and this exponential increase will also be seen across Southeast Asia.
Currently, the 10 countries within the Association of Southeast Asian Nations (ASEAN) – Singapore, Malaysia, Brunei, Cambodia, Indonesia, Laos, Myanmar, Philippines, Thailand and Vietnam – have a combined population of 625 million with several countries experiencing rapid economic growth.
“Many ASEAN member nations have young populations. In Vietnam for example, more than 60% of its 91 million citizens are under 30 years old. Add this to the rapid economic growth of the region, and the fact that mobile phone penetration approaches 100% of adults in most of ASEAN, and you will get an idea of the scale of opportunities available for mobile banking products and services in Southeast Asia,” said Adrian Harkin, CEO, management consulting for KPMG in the ASEAN.
Harkin added that despite the uneven distribution in economic prosperity among the ASEAN states, financial services technology trends have a similar impact across all of ASEAN, with young consumers more receptive than ever before to embrace non-traditional financial services alternatives.
Across ASEAN, parts of the population that have previously not been well served by financial institutions, together with many new adults entering the consumer society every year, are now becoming new banking clients.
The number of users of core services such as banking are set to double by 2020 across Southeast Asia as the ‘unbanked’ begin to be served through their new mobile devices. These young users are likely to be very different from prior generations of banking customers.
“They are less loyal, eager to try new things, demand personalized services and expect a broad range of products suited to their lifestyle and personal circumstances. They are not intimidated by technology, can be easily influenced by their peer group and expect high levels of transparency, convenience and mobility in the services they consume. All these factors will affect how banks customize their services,” said Mr Harkin.
Source: http://www.telecomasia.net/content/mobile-banking-adoption-due-surge-asean