Mobile phones and mobile banking
Traditional banks, such as Bank of America, are seeing an increased number of mobile banking users. The increased number of mobile phone users motivates this shift, but it fits both users and banks well. Users do not have to worry about finding a physical branch and are therefore able to bank on their own schedule. Banks can decrease staff at these branches, shifting resources to information technology platforms that can service a greater number of users at a lower cost.
The influence of Fintech
Fintech firms are cutting into the market share of established banks through a variety of channels. Most directly, these non-traditional financial firms are providing banking products and services, but only focusing on one product. For example, fintech firms are providing a growing share of personal loans. These companies are often agile startups that have lower overheads than the existing banks. However, as the established banks adopt the technologies of the fintechs, they may be able to win back some of the digital banking users that this statistic presents.