Research: almost half of 18-30 year olds have banked on a wearable device since the launch of Apple Watch

A report from app maker Intelligent Environments surveying 2,000 consumers in the UK found that almost half (46 percent) of 18-30 year olds have used banking services on a wearable device, with a similar number (47 percent) say they would like their bank to launch a wearable banking app.

New research from financial technology company Intelligent Environments today reveals that the popularity of wearable banking technology is rapidly growing among millennials. Six months on from the launch of the Apple Watch, the research shows that almost half (46 per cent) of 18-30 year olds have banked on a wearable device and a similar number (47 per cent) say they would like their bank to launch a wearable banking app.

More than half (52 per cent) of millennials expressed a desire to manage their finances via wearable devices. Wearable banking was also revealed to be popular among those aged 31-40, 46 per cent of whom expressed a desire to use it. London was the most active region for utilising wearable banking technology, with 49 per cent having used their banks’ apps for wearable devices, with Northern Ireland the second most active region at 38 per cent and Yorkshire third at 33 per cent.

The findings come shortly after the launch of the upgraded Apple Watch and its associated Watch OS 2 software platform, allowing for greater functionality. The popularity of wearable banking has been rising since the launch of the Apple Watch in April this year, shortly after which banks including NatWest, Nationwide and Barclays launched dedicated apps designed for the device.

The research indicates that, for those banks that have yet to launch wearable-enabled banking apps, there is a massive opportunity to engage new customers. The research found that over half (51 per cent) of 18-30 year olds would be more interested in digital banking because of wearable technology, a key target demographic for retail banks across the country.

To help banks adapt and design personal banking software for wearable devices, Intelligent Environments’ Interact® product is optimised for the technology and is designed to allow for cross-platform flexibility. In 2013, the company launched the world’s first smartwatch banking app for the Pebble watch.

David Webber, managing director of Intelligent Environments, said: ‘It’s fantastic to see that wearable banking is beginning to achieve its potential. Here at Intelligent Environments, we’re committed to helping deliver fantastic banking experiences on wearable devices, which is why we initially developed the first ever smartwatch banking app for the Pebble. This is an important and rapidly evolving segment, and as our research shows is crucial to engaging millennials. The 18-30 year old demographic is an important one for banks looking to establish a long-lasting customer relationship. With almost half of this age bracket calling for their banks to launch apps designed for wearable banking, banks would benefit hugely from improving their digital banking offering.’

This growth in devices has led to a great opportunity for banking companies to engage with new customers, as over half (51 percent) of 18-30 year olds say they have become more interested in digital banking because of wearable technology.

The growth of wearables is only set to increase as more and more consumers flock to the devices, with a recent report from analyst firm IDC estimating that 45.7m wearable devices will be sold this year, up 133.4 percent from last year’s figure. The rise is only set to continue over the next few years, with IDC estimating 126.1m units will be sold in 2019.

Source: www.intelligentenvironments.com