Online and mobile banking in the UK has topped £1 billion per day for the first time, according to the British Bankers’ Association and accountancy firm EY.

The Way We Bank Now report also concluded that contactless cards are becoming more and more prevalent, and more consumers are beginning to use mobile payment systems, such as the recently-launched Paym. Across the country more than 15,000 people install banking apps on their smartphones every day.

Online and mobile bank transactions are now worth £6.4 billion a week, up 10% from £5.8 billion last year. Apps for mobiles devices offered by financial institutions have also increased in popularity, with around 19% more downloads this year that last to total 14.7 million. More than three quarters of consumers now use online or mobile banking more than once a month.

Spending on contactless cards is rising steadily – although there appears to be some disagreement about how fast. In April the UK Card Association reported contactless spending in March totalled £3.5 million per day – however today’s report expects contactless transactions to peak at  £871,000 per day this year, up from £457,000 per day last year. Despite the rather large disparity, both reports agree that contactless and mobile payments are growing fast.

The British Bankers’ Association’s Chief Executive Anthony Browne said:

“This report shows just how enthusiastically the British public is embracing mobile banking, contactless cards and a range of other consumer-friendly banking technologies.

“The way we bank now has made it a lot easier for us to keep track of our finances, with far more options about how we spend our money and talk to our bank.

“This study shows that banks have, are and will continue to compete against one another to offer customers innovative technology to win your custom. It’s a revolution putting more power in your hands.”

Not everyone seems to agree with Browne’s chipper assessment of the UK banking industry – the last year has seen a huge rise in alternative finance and the rise of several “challenger banks”, including Metro Bank and Aldermore. A recent study by The Treasury, the Federation of Small Businesses and the British Chambers of Commerce also showed that British businesses have little confidence in their banks.

Photo by Johan Larsson