How Banks are Expanding by Using Mobile Apps

How Banks are Expanding by Using Mobile Apps

With recent developments in smartphone technology, Americans are now looking towards mobile banking for their financial needs. According to a February 2015 survey conducted by SNL Financial, 26% of consumers moved their primary checking account so they could have access to a mobile bank app. As a result, many banks are now adapting their technology to include mobile apps for smartphone users and expanding on their digital banking capabilities.

Mobile apps
There has been an interesting shift in banking transactions recently from 2014 to 2015. A survey found that during 2015, consumers have been using their bank mobile app 33% more than they did in 2014. 

Barry Sommers stated, “We have 37.7 million online customers, up 8% from last year and 20 million customers who use our mobile apps, up 22% from last year. Mobile deposits are up 30%, ATM deposits are up 10% and peer-to-peer payments are up 80%.” 

Location, Location, Location
Since mobile apps allow consumers to access their bank account at anytime, they are taking advantage of this convenience by accessing mobile banking at various places. Here is the list of the top 5 placesAmericans use mobile banking: 

  • 54% use their mobile banking app at work
  • 39% use their mobile banking app at a restaurant
  • 38% use their mobile banking app in a checkout line
  • 17% use their mobile banking app on a date
  • 10% use their mobile banking app in a client meeting 

Millennials leading the way for digital banking
Braun Research discovered that 35% of consumers are choosing to bank online more than a year ago. A lot of this has to do with the increase of millennials choosing to go digital with their banking. Below is a comparison of banking habits between Millennials, GenXers, and Baby Boomers from 2014 to 2015: 

Bank app usage

  • 67% of Millennials increased their bank app usage
  • 55% of GenXers increased their bank app usage
  • 33% of Boomers increased their bank app usage 

Use bank app to transfer money

  • 26% increase of Millennials using a mobile app to transfer money
  • 19% increase of GenXers using a mobile app to transfer money
  • 8% increase of Boomers using a mobile app to transfer money 

ATMs expand capabilities
Although consumers are leaning on mobile banking for several of their immediate financial needs, ATMSare still an important part of banking. In fact, a recent survey acknowledged the abundant capabilities of ATMs noting that: 

  • 70% of consumers use ATMs to view account balances/transactions
  • 64% of consumers use ATMs to deposit checks
  • 46% of consumers use ATMs to transfer money from one account to another 

By transitioning to a more technology-oriented mindset, banks can level the playing field with other banks and make it more convenient for customers to bank with them.

 

Source: Financialbrand.com