For the fourth year in a row, U.S. consumers are conducting their banking via mobile apps more often than any other method, according to a new survey conducted by Morning Consult on behalf of the American Bankers Association. The national survey found that consumers continue to embrace digital banking channels, with 48% of bank customers using apps on phones or other mobile devices as their top option for managing their bank account and 23% using online banking via laptop or PC the most in the past 12 months. The next most popular banking methods include visiting a branch (9%), ATMs (8%) and telephone calls (5%).
“Mobile banking use accelerated during the pandemic and has only grown in the years since as people continue to enjoy the convenience of banking on the go,” said Brooke Ybarra, ABA’s senior vice president of innovation strategy. “While digital channels are used most frequently, and people clearly appreciate having their bank as close as their mobile phone, consumers continue to have a wide array of banking options to meet their needs. For those who prefer to conduct transactions in person, branch visits remain a widely available option.”
A breakdown of age demographics shows preferences vary among different generations. More than half of Generation Z (57%), Millennials (60%) and Generation X (52%) use mobile banking apps most often, while a plurality of Baby Boomers most often utilize online banking (39%). One in six Baby Boomers (16%) visit bank branches the most often, while only 4% of Gen Z and Millennials prefer to visit a branch. [See infographic for a full breakdown of top banking preferences by age].
ABA released an accompanying infographichighlighting the survey results. The data released today are the latest in a series of results gauging U.S. consumers’ preferences and opinions regarding banks and their services. ABA recently released additional survey data on credit union policy issuesas well as data revealing that Americans are highly satisfied with their bank and competitive financial services marketplace, highly value overdraft protection and want Congress to allow banks to serve cannabis-related businesses. The full results for today’s survey questions are as follows:
When asked “In the past year, which method did you use most often to manage your bank account(s)?” consumers responded as follows:
- Mobile (apps on smartphone or tablet) – 48%
- Internet/Online (Laptop or PC) – 23%
- Branches – 9%
- ATM – 8%
- Telephone (calls to your bank) – 5%
- Mail – 2%
- Don’t Know/no opinion – 5%
Age breakdown:
- Mobile — 57%
- Online — 11%
- ATM — 10%
- Telephone — 9%
- Branches — 4%
- Mail — 2%
- Mobile — 60%
- Online — 14%
- ATM — 9%
- Branches — 4%
- Telephone — 4%
- Mail — 3%
- Mobile — 52%
- Online — 17%
- ATM — 9%
- Branches — 9%
- Telephone — 6%
- Mail — 2%
- Online — 39%
- Mobile — 31%
- Branches — 16%
- Telephone — 5%
- ATM — 5%
- Mail — 1%
About the Survey
This poll was conducted by Morning Consult on behalf of the American Bankers Association from September 20-22, 2023, among a national sample of 2,211 adults. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on age, race/ethnicity, gender, educational attainment, and region. Results from the full survey have a margin of error of plus or minus 2 percentage points.
FAQs
What are consumer trends in banking? The Ascent's survey revealed three key consumer trends in banking: Digital banking, fraud protection, and customer service are top banking needs. Savings rates are the most important type of interest rates for bank customers.
What are consumers looking for in a bank? ›
Account Types and Services
Offering a wide array of account types and financial services is crucial in today's banking industry, as it directly caters to the diverse needs and financial goals of customers. People are looking for financial institutions that can serve as a one-stop shop for all their banking needs.
What percentage of millennials reported a preference for online banking and not banking in person? ›
Similarly, about half (47.4%) primarily access their finances through mobile or online banking, with 42.1% using a combination of in-person and digital tools and only 10.5% preferring to physically visit their bank. On average, millennials visit their banks more often than baby boomers and Gen X.
How many people use online banking in the US? ›
As of 2022, 78% of adults in the U.S. prefer to bank via a mobile app or website. Only 29% of Americans prefer to bank in person.
What is the hottest trend in banking is the use of? ›
Like digital, the Age of AI is likely to have a transformative impact on the industry, affecting roles in virtually every part of the bank. Not only is the rapid adoption of gen AI the most important trend for banks in 2024—it's also shaping the other nine trends.
What is the next big thing in banking? ›
Trends in this report include AI, open banking, hyper-personalized banking, robotic process automation, and quantum computing. Technology in banking enhances security and operational efficiency while improving overall customer experience.
How will you attract customers in bank? ›
- Focus on the Future Investor.
- Market Your Bank on LinkedIn.
- Offer a Referrals-Based Rewards Program.
- Revisit Your SEO Strategy.
- Make Banking Approachable.
- Build a Community-Centered Story.
- Prioritize Good Customer Service.
Individual Banking—Banks typically offer a variety of services to assist individuals in managing their finances, including:
- Checking accounts.
- Savings accounts.
- Debit & credit cards.
- Insurance*
- Wealth management.
Banks can segment their audiences in the following ways: Demographic segmentation - Demographic factors such as age, gender, education level, income, marital status, and occupation can significantly impact customer expectations. That is particularly true in areas of costs, shareholder returns, and growth.
What is the new way of banking? ›
Author
| Label | Traditional Banking | Digital Banking |
|---|
| Fees | High | Low |
| Transactions | Paper-based processes | Online portals and mobile applications |
| Convenience | Customers are required to make personal visits to branch | Menu-driven methods and self-service options |
| Security | Conventional | AI-powered fraud detection systems |
3 more rowsFeb 13, 2024
Gen Z attitudes toward money and finances are sometimes aligned with and sometimes starkly different from those of older generations. Research suggests that Gen Z trusts traditional banks more to secure their data and needs digital services to be exceptional to retain their customers.
How much money does the average millennial have in their bank account? ›
As you can see, all three groups — early adult Gen Zers, young millennials and older millennials — are all most likely to have $100 or less in savings. That's insufficient by any standard and enough to cover only the least expensive emergencies.
What is the most popular banking method in the US today? ›
These findings are consistent with a recent FDIC survey that found the use of mobile banking increased sharply between 2017 and 2021, becoming the most prevalent primary method of account access.
What is the most used digital bank in the USA? ›
Chime is the biggest digital bank in the U.S., with over 13.1 million digital banking users. And Revolut based in London has more than 19,130,000 million users, making it the biggest digital bank in the UK.
Which bank has the most customers? ›
What are the recent trends in banking? ›
Current changing in banking related include: data and analytics, enhanced security and fraud mitigation, digital payments, cloud-based architectures and mobile apps in India. Key Words : Recent Trends of public and private bank with Financial inclusion.
What is a current consumer trend? ›
More than 80% of consumers confirm they'll be purchasing more environmentally friendly products in the next five years. Consumers are willing to pay more for sustainable and environmentally friendly goods, as well. Two-thirds of consumers are reportedly willing to pay more for sustainable products.
What is a customer trend? ›
A customer trend refers to a pattern of behaviour or preference that emerges among a group of customers over a period of time. These trends can include changes in purchasing habits, the types of products or services customers are interested in, or the ways in which customers interact with a business.
What is consumer behavior in banking? ›
A consumer behavior analysis involves researching customer habits, identifying the steps your customer takes in their banking journey, and knowing how external factors such as social trends impact their decision-making.
