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Mobile is where the money is

Mobile is where the money is

If you commute in a major city, the slew of phone-addicted zombies is probably enough to convince you that mobile data usage is on the rise.

However, if you need hard evidence, recent research from Roy Morgan, backed up by usage data from the ABS, suggest that mobile really is where the money is.

Mobile banking - the new financial advisor?

According to Roy Morgan’s latest customer satisfaction research, nearly half of Australians use mobile banking in an average four-week period, whilst only one in five of Australians use bank branches to conduct their banking.

Further, they posit that “in September 2019, satisfaction levels for mobile banking users was 90.3%, ahead of interactions via internet banking (89.0%), branches (86.4%), personal banker/advisor (78.9%) and phone banking (80.4%).”

This is a significant increase from their January 2019 research, reporting mobile banking satisfaction levels of 89.3%, ahead of internet banking (87.7%), branches (85.2%), personal banker/advisor (81.2%) and phone banking (77.2%).

Interestingly, whilst phone banking, branches, internet banking and mobile banking interactions all went up, personal banker and advisor satisfaction went down.

With mobile banking apps providing money advice and budget tips on the go, could it be that Aussies less need to spend money a financial advisor? Or, could it be a growing distrust in the financial advice industry?

The Australian Prudential Regulatory Authority (APRA) published a consumer research paper in August this year that noted cost and distrust as common barriers to getting financial advice.

For some Australians, this has potentially led to the dismissal of such services, and the adoption of mobile banking apps as "pocket” financial advisors.

Girl on smartphone mobile banking on the bus

ABS data shows a whopping 1157% increase in mobile data usage

When you look at how our mobile usage has changed in recent years, it makes sense why mobile banking has become the most popular banking channel.

From June 2013 to June 2019, active mobile handsets increased by about 7.3 million and data usage soared by 232.5 million GB in the same period, according to the ABS.

According to ABS data, in the six months to June 2013 the average Australian mobile handset used 1.02GB data.

But when looking at the bureau’s latest stats in June 2018, that average skyrocketed to 9.37GB.

This 1157% growth in usage suggests that mobile is where the banks need to be, and that mobile really is where the money is.

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This article was reviewed by Finance Writer Alison Cheung before it was published as part of RateCity's Fact Check process.

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