Around 42% of British people use smartphones installed with banking apps to perform basic bankng transactions such as balance checks and transfer funds, according to a research by Consumer Intelligence.

The online survey of 2,002 UK adults found that mobile banking is the third most popular use for smartphones after social networking and listening to music.

Consumer Intelligence banking specialist, David Black, said the popularity of banking apps highlights how a growing number of people are able to handle their financial dealings wherever they are.

"Banks and building societies are embracing the technological change with Barclays reporting the first house purchase on a mobile while smaller institutions such as Cumberland Building Society have launched their own versions," Black said.

Consumer Intelligence points out that mobile banking is further going to expand with the launch of Payment Council’s mobile payments scheme in April 2014, which will allow customers to make payments direct to or from an account on their phone.