Online Banking Statistics
The changing face of financial transactions in America
"Online banking" is a buzzword that keeps on buzzing; it's an expression that keeps being expressed; it's a saying that keeps being said. But do the statistics back up the hype? Are people really banking online and with their mobile phones to the degree that we think they are? Moreover, how about other online and mobile phone financial transactions? Are those growing in number?
Thanks to the folks at the Federal Reserve and the Pew Research Center, we don't have to wonder so much. All we have to do is read.
General banking statistics
- Sixty-eight percent of consumers with regular Internet access and a bank account used online banking in the year prior to March 2012. (Federal Reserve)
- Telephone banking is the second most commonly used method of accessing financial services, with 33 percent of financial consumers reporting that they used it in the same past 12 months. (Federal Reserve)
- Mobile banking and mobile payments are the least common methods of accessing financial services, as just over a fifth of respondents with mobile phones and a bank account report using mobile banking and only 11 percent report using mobile payments in the past 12 months. (Federal Reserve)
- "However," says the Federal Reserve, "...mobile banking access appears to be gaining traction with consumers and is likely to overtake telephone banking access in the next couple of years (as measured by consumers' expectations regarding their future use of the technology)."
Online banking statistics
- Thirty percent of those who bank online are between the ages of 30 and 44; 20 percent are age 60 or older. (Federal Reserve)
- Women and men tend to bank online in equal numbers. (Federal Reserve)
- Household income appears to have no effect on tendencies to bank online. However, says the Federal Reserve, differences occurred at the tail ends of the income spectrum: Individuals earning less than $25,000 per year were significantly less likely to perform mobile banking, while individuals earning more than $100,000 per year were significantly more likely to do so.
Mobile phone banking
- According to the Pew Research Center, one-third of smartphone owners have used their phones to perform online banking activities like paying bills or checking a balance.
- Eleven percent of mobile phone users say they plan to access bank accounts via their phone in the upcoming year. (Pew Research Center)
- Mobile banking usage is often connected to education level: 73 percent of all mobile banking users have at least some college education, but this education group represents only 60 percent of all mobile phone users. (Federal Reserve)
Future use of smartphones as credit cards
- About 65 percent of respondents say they believe that by 2020 most consumers will have "embraced and fully adopted" the use of smartphones for swiping to make purchases, nearly eliminating the need for cash or credit cards. (Pew Research Center)
- However, about 33 percent say they do not trust the use of smartphones for purchases, and they believe mobile payments will "not gain a lot of traction by 2020." (Pew Research Center)
There is no question that online banking is growing and will continue to grow. The key for financial institutions, however, is providing options. Some people like to bank online or on the phone, but many others prefer the face-to-face personal touch at one of our branches. No matter which method you choose, feel free to call on us anytime.