The number of banking apps accessed via smartwatches will reach 10 million in 2017 and more than 100 million by 2020, according to Juniper Research.
Global mobile banking user base will reach 2 billion by 2020, representing 37 percent of the global adult population. SMS based push banking services are on the decline with banks noting a decline in average number of messages sent to mobile banking users.
The use of smartwatches to access push banking information services has gained traction over the past 12 months, the report said. Global banks have launched apps for the wrist, while the launch of Apple Watch in April 2015 further accelerated the demand for wearable banking apps.
While wearable based banking information services has emerged as a key trend, many perceive this as a gimmick at present.
The telecom report said wearables, including smartwatches and glasses, are not viable for conducting complicated financial instructions, while wrist based wearables will become a key device for multi-factor authentication for banking transaction approval in the future.
New services such as AR (augmented reality) banking apps and a cashless money box have a short life span with the consumers.
Banks and financial institutions will need to offer more targeted services, aimed at specific user needs. This will be enabled through customer analytics and big data management platforms from vendors such as Oracle, Infosys, Fiserv and SAP.
Baburajan K
editor@telecomlead.com
