This piece is from our special report on digital banking. Click here to read the first piece in the series, “A bank branch in your pocket.” Click here to read the second piece in the series, “the end of cash.”

Banks are doing a good job of keeping up with advances in new technology at the moment, with digital apps, faster payments, contactless debit cards and payments over mobile phones. But the speed with which new technology is being developed means that banks will have to make substantial investments if they are to maintain this.

The main incentive for banks to develop a new digital offering is the desire to deliver banking in a smarter way to meet the growing expectations of their customers. Huge numbers of people now have smartphones filled with apps to help them manage their lives. They demand banking services in the same way as they might demand any other service. Digital banking apps have proved very popular and the take-up has been substantial. People now access their banking app 20 to 30 times a month, but visit their branch less than once a month—the banks have been genuinely surprised at how fast that has taken off. RBS says its busiest branch is its mobile app at peak commuting time in the morning as people log into their accounts.

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