Why Digitization Is the Future of Consumer Financial Services
The Federal Reserve recently studied 50,000 U.S. residents and their “Consumer and Mobile Financial Report” found, somewhat unsurprisingly, that mobile banking is on the rise. The most common actions include checking account balances, transferring money to themselves or others, and receiving push notifications.
“There is no doubt that consumers are embracing mobile money, it’s a booming space,” says Rimma Perelmuter, CEO of Mobile Ecosystem Forum in a call.
The Federal Reserve report also revealed a huge opportunity for the unbanked population. Of the unbanked, 90 percent have a mobile phone (73 percent of those are smartphones), but only half currently use mobile banking and mobile payments.
Mobile is contributing to economic and social development across the globe, delivering financial inclusion to unbanked populations with 270 live services in 90 countries as of December 2015 according to the “GSMA Mobile Economy Report.”