Banking App Usage on the Rise According to Recent Survey
In a recent survey conducted by Bitkom, an IT industry association in Germany, it was found that the use of mobile banking apps in the country has been steadily increasing.
The survey results indicate an increasing trend towards app-based banking in Germany. As of now, about 67% of individuals in Germany use online banking, up from 32% in 2006, showing significant growth in digital financial engagement.
The number of Germans who use a standalone app for banking transactions has increased significantly. 54% of Germans now use a standalone app for banking transactions, an increase from 47% a year ago and 30% three years ago. The number of Germans who use a smartphone for online banking has increased to 58%, while the number who use a tablet for online banking has risen to 50%.
Interestingly, 58% of online banking users in Germany use their own bank's app. The use of free third-party apps for online banking in Germany has increased to 9% from 6% last year, while the use of paid third-party apps has risen to 9% from 5% last year. However, 25% of online banking users in Germany do not use an app, but rather the internet browser on their smartphone or tablet. This is down from 31% last year.
The survey was conducted by Bitkom Research through telephone interviews with 1,004 people in Germany aged 16 and over. The survey was published on Monday.
Despite the growing trend towards mobile banking, mobile payment transactions in Germany remain relatively low compared to other European countries. This is due to Germany’s heterogeneous mobile payment market, which is still evolving through increased digitalization, shifts in customer behavior, and regulatory changes like PSD2. Traditional banks like Deutsche Bank and Sparkasse have started offering their own mobile payment solutions, while other banks such as Commerzbank partner with big tech firms like Google Pay. At the same time, neo-banks like N26 (used by over 5 million customers), Revolut, and bunq focus on fully digital experiences but rely on partnerships with big tech for payment functionalities rather than their own mobile payment systems.
The broader digital trends also show a strong smartphone penetration in Germany (97% of the population owns a smartphone), and mobile devices account for 64% of online purchases as of 2023. This suggests a strong foundation for further growth in mobile banking and payments as mobile commerce expands.
In addition, major global banks such as J.P. Morgan report increases in active mobile customers internationally and aim to expand digital offerings, indicating a wider banking industry push toward mobile. Although this data point references J.P. Morgan’s global numbers rather than specifically Germany, it aligns with the overall upward trend toward mobile banking globally.
In summary, the latest trends in Germany highlight an increasing online banking penetration, slow but growing mobile payment adoption, strong smartphone ownership, increasing mobile commerce, and the emergence of neo-banks providing innovative digital banking services. This situation reflects a transition phase where mobile banking apps are gaining traction but have not yet reached the high levels of mobile payment adoption seen in some other European markets.
Other businesses, such as Commerzbank and big tech firms like Google Pay, are partnering to offer mobile payment solutions in Germany, aiming to ride the wave of increased digital financial engagements. Other banks, like N26, Revolut, and bunq, focus on digital experiences but rely on third-party mobile payment systems due to the evolving and heterogeneous mobile payment market in the country.
