You’re not the only one who doesn’t think “go to bank” should be on your to-do list. A new NerdWallet survey found that nearly three quarters (72%) of banking customers use a mobile banking application, with 41% using more than one.
Survey of over 2,000 Americans — 1,467 of whom are mobile banking app users — was conducted online by NerdWallet’s The Harris Poll. It asked banking customers about their app use and concerns about mobile banking. We also asked banking customers not using apps why they did so.
Many app users are able to bank online using mobile apps. Almost 3 out 5 smartphone banking app users (62%) claim that they use mobile banking apps for their banking transactions. 41% of app users say they don’t usually need to visit a branch in person for banking activities.
There are some banking customers that don’t believe mobile banking apps are essential for them. Nearly half of banking customers (47%) do not use mobile banking apps. However, this could indicate that they may be missing out on valuable features like mobile customer service or mobile check deposit.
Many banking customers worry about security, regardless of whether they use mobile apps. More than 2 out 5 customers (42%) don’t use mobile banking apps because they aren’t confident in their security. Nearly half (46%) of mobile banking app users are worried about their accounts being hacked.
Spencer Tierney, a banking expert at NerdWallet, says that mobile apps offer more benefits than branch visits. They are available 24/7, have no wait times, and can be used to make everyday transactions. However, the threat of a cyberattack or data breach at a bank remains a concern .”
Banking app users depend on them every day
According to the survey, 37% of mobile banking app users (73%) say that their bank’s app is user-friendly. 62% of those who use mobile banking apps for their banking transactions do so via mobile apps. 41% of mobile banking app users (41%) say that they don’t usually need to visit a bank branch for their banking activities.
Due to the COVID-19 pandemic, many have made it a priority to avoid in-person banking over the years. A survey revealed that 33% of mobile banking app users use their app more than before the pandemic. However, not all customers of banking are app users.
Non-app users mention lack of security concerns
Some customers don’t use the mobile app of their bank. The number one reason is lack of necessity. The No. 1 reason for this is lack of necessity. According to the survey, nearly half of banking customers (47%) who don’t use mobile banking apps don’t think they are necessary. They could visit a branch of their bank, or they could use the bank’s website for banking transactions.
Non-app users are also concerned about security. The survey found that more than 2 out 5 bank customers don’t use mobile banking apps (42%), mainly because they aren’t confident in the app’s security. They are not the only ones with concerns about security.
App users are concerned about mobile banking
A survey revealed that 74 percent of mobile banking app users have concerns about mobile banking. Account hacking (46%), and accessing their bank accounts if their phone gets lost or stolen (38 %).
33% of mobile banking app users worry about their accounts being locked out. A third of mobile banking app users are concerned about their family members getting in. The survey revealed that nearly one in 10 smartphone banking app users (9%) are concerned about their spouses or children accessing their accounts from their phones.
What can banking customers do
Switch to an online-only bank. Many customers don’t feel the need for physical branches and it might be advantageous to move to an online bank. Online banks have lower overhead costs than traditional brick-and mortar banks and offer higher interest rates. The difference between rates can be dramatic as interest rates rise.
Tierney states that “the difference between online and traditional banks’ rates was always clear, but it’s now jaw-dropping.” We’re talking savings accounts that offer 2% to 33% annual percentage yields with no monthly fees. These online accounts can help to offset some of the inflationary pressures on our wallets .”
As of October 2022, the national average savings account interest rates is only 0.21%. This compares to over $300 per annum if you choose a bank that has a 3% rate of interest.
The survey found that nearly 25% of mobile banking app users (23%), have spoken with live customer service agents through their bank’s app. This service is especially helpful for those who are averse calling.
Tierney says that bank apps often have email and text alerts you can customize. “So, you can be pinged for transactions that you don’t recognize and take swift action span>
You can use mobile banking apps securely by taking steps. Both app users and non-app users have security concerns. However, there are many ways to bank securely and safely. Keep your app up-to-date, use strong passwords and don’t use mobile banking apps on public Wi Fi.
Tierney states that managing your finances via a mobile app is quick and simple. However, it’s important to be careful not to share sensitive information on social media or other public channels.
The Harris Poll conducted this survey online in the United States for NerdWallet between Sept. 29 and Oct. 3, 2022 among 2,066 U.S. citizens 18 years old or older. 1,467 of these people use mobile banking apps. A Bayesian credible interval is used to measure the sampling precision of Harris online surveys. The sample data for this study is within +/-2.8 percentage points using a 95% confidence limit. Chloe Wallach, [email protected] can provide more information about the survey methodology including weighting variables, subgroup sample sizes and other details.
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