Mobile banking is now used more than any other online channel in the UK and has become the standard for routine banking interactions, according to a new report.

App Annie’s European Retail Banking Report found that in the UK and France there were more than twice as many sessions in the top 10 retail banking apps in H1 2016 compared with H1 2014.

Lloyds Bank, for example, estimates that 60 per cent of mobile banking usage comes from its customers simply checking balances and statements.

The report also indicated a disparity in retail banking app usage between different age groups in the UK. Consumers aged between 25 and 44 were found to access retail banking apps most frequently, with those over the age of 45 the least likely to do so.

In fact, the latter access retail banking apps 85 per cent less often per week than 25 to 44 year olds, highlighting the potential room for banks to boost usage among the older demographic.

The report also found that a large number of FinTech apps are now offering specialist services that would previously have been offered by a traditional, full-service retail bank.

Paul Barnes, App Annie’s territory director for northern Europe and the Middle East, said: “As we predicted last year, there is a growing risk that traditional banking services will continue to be decoupled as consumers choose the most tailored and best value option for each of their requirements.

“Furthermore, recent ‘Open Banking’ legislation in the UK will further support the growth of the FinTech sector. From 2018 UK retail banks will be required to share data with third parties — a boon for companies offering service comparisons or account consolidation. Without continued investment in innovation, this could lead to a fall in engagement for established retail banks.”

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