1.8bn users are expected to adopt mobile banking in the next four years.
Around 25% of the global population is expected to use mobile banking within the next four years, which calls for banks to adopt mobile banking strategies in order to keep up with the changing landscape.
KPMG revealed in its Global Mobile Banking Report that banks must ‘adapt or die’, based on primary survey data supplied by UBS Evidence Lab.
The report said that banks that do not have clear mobile banking strategies will run a risk of losing customers and will be at a competitive disadvantage over banks that have adopted the new age technology.
The Global Mobile Banking Report also highlighted that mobile has become the largest banking channel by volume of transactions and consumers are adapting it in a rapid pace.
It suggests the boom of ‘Open Banking’, which will allow consumers to bank within context, across a variety of channels, devices, operating systems.
The report also suggests that banks need to be more open while adopting such technology by collaboration with developers to develop apps for improving the process.
Investment on security measurements was also highlighted in the report, to tackle present problems including malware and social engineering and the ones that can arise in future.
KPMG UK digital and mobile banking lead David Hodgkinson said: "Banks must adapt or die. Mobile banking is clearly supplanting all other channels as the main portal between the bank and the consumer.
"Many banks have already risen to the challenge and invested in new infrastructure and pioneering initiatives, but others must follow suit and commit to building both immediate propositions and on-going capability to keep up with the pace of change.
"This new, exciting phase of mobile banking innovation, spearheaded by new market entrants as well as pioneering banks, will be a rollercoaster.
"Banks must overcome substantial infrastructural challenges, and reconcile consumers’ appetite for ease of use with greater security. Boldness will be required to overcome these challenges, and the only sure-fire winner will be the consumer."