10 online and mobile banking and payment stats that all bank marketers should consider
The banking industry is constantly evolving. In order to stay competitive, bank marketers need to understand and respond to the most recent trends within the industry, including the move toward online and mobile banking and payment services.
Here are 10 incredible facts and statistics about online and mobile banking and payments that help demonstrate the current landscape.
1. 74% of consumers have used online banking in the past 12 months.1
When surveyed, nearly three in four banking consumers had logged into an online bank account in the past 12 months. Based on this statistic, banks that do not offer online banking are missing out on a huge opportunity for interaction. The next step in the lifecycle is to migrate online banking customers to make online payments. Ensure you have an aggressive adoption program in place to help move customers to online and mobile payments. Keep reading if you need more proof these trends are here to stay.
2. 28% of consumers use mobile banking.1
More than one in four consumers use a mobile device, such as a smartphone or tablet, to access their bank account and perform transactions. This statistic includes responses from consumers who do not own a mobile device. Bank marketers should make efforts to increase adoption of their mobile banking and payment services; this will ensure that as consumers have more options, their bank will be the default for payments.
3. More than 40% of online banking takes place on a mobile device.2
Among consumers who engage in online banking, more than 40% of online banking activity utilizes a mobile device. To capitalize on this trend, banks need to offer not only an online banking option, but mobile banking and payment options. Further, these options aren’t enough; bank marketing plans need to prioritize marketing these services to ensure customer usage and adoption.
4. Mobile payments are growing in popularity every year.1
Mobile payments become more popular each year, with 15% of consumers reporting that they used mobile payment options at some point during 2012, and this number growing.
5. 27% of consumers would switch to a branchless bank.3
This is one of the most startling and arguably threatening marketing stats – over one-fourth of survey respondents indicated that they would be willing to switch to an online bank with no branches. This statistic might suggest that there may be a generation that doesn’t appreciate or desire the physical branch banking experience. Bank marketers need to consider how to build relationships with customers through digital and other targeted channels.
6. Consumers worry about the security of mobile banking.1
Among consumers who did not utilize mobile banking, the most frequently cited concern was a lack of faith in the security of mobile transactions. Communications can help alleviate this concern, by emphasizing security aspects of mobile payments.
7. Consumers use mobile payments for many different purposes.1
Consumers surveyed used mobile payments to pay bills, make online purchases, transfer money to other people, receive money from other people and even complete point-of-sale transactions. Ensure your financial institution is promoting different uses and types of payments. Target users based on behaviors they have not yet adopted. Turning users into super users can help entrench high value customers with your financial institution.
8. Apps are more engaging than websites.2
Apps tend to be preferred over web browsers on mobile devices, in general. Banking consumers surveyed spent more time using apps than they did using mobile web browsers. In fact, 66% of all time spent engaged in mobile banking involved a banking application. This reinforces the need for driving the usage of mobile banking and payments.
9. PayPal is the most popular app.2
Among mobile apps related to payments and finance, PayPal is most popular, with 15.3 million distinct users. Financial institutions need to work hard to ensure their mobile payment options gain traction. PayPal’s consumer acceptance is a real threat that bank marketers need to address.
10. 41% of consumers would bank with PayPal.3
PayPal has already earned consumers' trust when it comes to mobile transactions, and 41% of those surveyed are open to having PayPal handle their banking, as well as payments. In order to compete with this established giant, financial institutions need to offer mobile services that not only rival PayPal, but also make consumers feel comfortable and secure.
The statistics above tell an interesting story. Online and mobile banking and payments are growing rapidly. To keep up with consumer banking preferences, financial institutions must be able to deliver engage customers with online and mobile banking and payments. Existing providers like PayPal are already getting a lot of attention from consumers, and have the power to take business away from other financial institutions that don't meet consumers' needs.
Bank marketers can execute activation and adoption programs to capitalize on these trends. To learn more about these best practices and insights, sign up for our Formula 3600: Triggered & behavioral programs for online & mobile banking adoption webinar. The complimentary Formula 3600 webinar will share:
How to leverage payment and other banking trends to influence mobile and online usage
How to recapture abandoners from the enrollment process
How to leverage data for customized and secure communications that increase transactions
How to create a comprehensive behavioral lifecycle triggered communications program
How to target and reach customers when they are in the right mindset for banking services
How to transform other competitive banking options into an opportunity for your financial institution
Sources:
3. Accenture