The smartphone of the future will have “invisible innovations” including 5G connectivity, AI capabilities, machine-learning chips and processing power far beyond phones today. These devices will increasingly be used to authenticate access to physical and digital environments including homes, stores, information systems and all banking channels.

By Jim Marous, Co-Publisher of The Financial Brand and Owner/Publisher of the Digital Banking Report Members of older generations are rapidly adopting smartphones, and will start to increasingly rely on them to access more financial services, eCommerce sites and payment options, using their smartphones. Bottom line, there needs to be an ongoing commitment to ensuring the experience of mobile banking continues to improve.

Deloitte predicts that the penetration of smartphones among adults in developed countries will surpass 90% by 2023, a five-percentage-point increase over 2018. Smartphone sales will be 1.85 billion per year in 2023, a 19% increase over 2018 and equivalent to over five million units per day.

The main driver of higher adoption rates will be the acceptance and usage among older age groups. Deloitte expects ownership among 55-to-75-year-olds to reach 85% in developed countries by 2023, a 10% increase over 2018. Deloitte also predicts that owners will interact with their phones on average 65 times per day in 2023, a 20% increase over 2018.

“This will reflect the wider range of applications used by the mainstream smartphone owner, such as enterprise applications and in-store payment options, and more intensive use of existing applications such as camera capabilities.” Despite being the primary access channel for smartphone-centric content, a 2023 smartphone is likely to look, on the outside, very similar to a 2018 model. That said, there will be an introduction of an array of innovations that will provide greater ease of use and improved functionality. Read more from thefinancialbrand.com…

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