11 July 2016
Mobile Banking on the Rise

We Americans take our mobile phones everywhere, and many people would feel lost without them. In fact, one survey found that more people would be upset over losing their cell phone than losing their wedding band.1 According to a recent report by the Federal Deposit Insurance Corporation (FDIC), 87 percent of U.S. adults now have a mobile phone, and 77 percent of mobile phones are Internet-enabled (smart) phones.2

Besides using our phones to talk and text, we use them to get directions, shop online, look up information, keep track of appointments, and much more. So it’s no surprise that an increasing number of us are using them to conduct banking transactions as well. If you use your smart phone to check your bank account balance or transfer funds from one account to the other, you’re among a growing number of Americans who have discovered the ease and convenience of mobile banking.

Digital devices or tellers?

The traditional method of banking by visiting a teller at a branch now ranks fourth in the ways Americans interact with their bank. Online banking, which has been the most popular means of banking since 20093, ranks first at 65 percent. It’s followed by ATMs at 62 percent, then mobile banking at 54 percent and visiting a branch at 51 percent.2 Most consumers reported using a mix of online and offline channels to interact with their bank.

About 53 percent of smartphone owners with a bank account had used mobile banking in the 12 months prior to the survey, up from 52 percent a year earlier.The three most common mobile banking activities are checking balances or recent transactions (94 percent), transferring money between bank accounts (58 percent), and receiving an alert (a text message or e-mail) from their bank (56 percent).2

Making payments on the go

Using mobile phones to make payments is also becoming increasingly popular. People can pay bills through a mobile phone web browser or app, purchase an item or a download online, or pay for something in a store using an app like ApplePay®. According to the FDIC report, 28 percent of smartphone users made a mobile payment in the 12 months prior to the survey.2

Is it for everyone?

If 53 percent of smartphone users with a bank account are using mobile banking, why haven’t the other 47 percent jumped on the bandwagon? While concern about the security of the technology was cited as one reason to avoid mobile banking, the FDIC survey showed that 88 percent of those not using mobile banking said it was because their needs were being met through other banking channels.

What’s ahead?

According to Nessa Feddis, senior vice president of the American Bankers Association, “Mobile banking’s popularity will continue to grow as banks enhance their mobile functionality and make it easier for consumers to access their accounts anytime and anywhere. Mobile banking is also an e-banking option for those who don’t have a computer, but do have a smartphone. As consumers spend more time on their mobile devices, it’s likely that more people will adopt mobile banking as their top choice going forward.”3

Click here to find out more about mobile banking and mobile bill pay from Nevada State Bank.

 

1. (32 % versus 19%) https://www.jpmorganchase.com/corporate/news/pr/that-familiar-ring.htm

2. http://www.federalreserve.gov/econresdata/consumers-and-mobile-financial-services-report-201603.pdf

3. http://www.aba.com/Press/Pages/081115MobileBankingSurvey.aspx

 

The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of ZB, N.A.

 

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