The number of banking apps accessed via smartwatches will reach 10 million in 2017, and will rise to more than 100 million by 2020.
However, research by mobile and digital technology analyst firm Juniper Research noted that while wearable-based banking information services have emerged as a key trend, it is perceived by many as a gimmick at present.
Juniper said that while wearables, including smartwatches and glasses, are not suited for conducting complicated financial instructions, wrist-based wearables will become a key device for multi-factor authentication for banking transaction approvals in the future.
“Digital banking has experienced a substantial progression towards personalised computing,” research author Nitin Bhas said.
“We do believe that, keeping pace with technology evolution, wearable banking will witness a faster adoption rate than mobile banking, especially amongst Millennials.”
The research also found that while banks have introduced a number of innovative new services in the space, such as augmented reality banking apps and cashless money boxes, these generally have a short life span with consumers.
Furthermore, SMS-based push banking services are on the decline, with banks noticing a number of messages sent to mobile banking users.
Juniper said banks and financial institutions will need to offer customers more targeted services, aimed at specific user needs.
“This will be enabled through customer analytics and big data management platforms from vendors such as Oracle, Infosys, Fiserv and SAP," the firm said.
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