Who uses mobile banking apps?
The demographic with the highest preference for mobile banking is millennials with 93% saying they use their banking app at least once a month or more, followed by Gen X (90%), Gen Z (89%) and Boomers (84%). In fact, managing credit is a top priority for millennials.
| Age range | % who are likely to use an online-only account as primary account |
|---|---|
| 18-24 | 42% |
| 25-34 | 34% |
| 35-54 | 15% |
| 55+ | 11% |
Expense tracking, automated savings and easy access to account information are a few features that make mobile banking an essential tool for managing finances in the modern world.
Mobile banking allows consumers to be able to access banking services from anywhere. Businesses and business owners are now able to save time by making use of mobile applications to process their payments or even receive funds from clients directly to their phone numbers.
The tides have shifted, and the majority of Americans are now on board with digital banking. As of 2022, 78% of adults in the U.S. prefer to bank via a mobile app or website.
Mobile payments users—consumers who have made an online or point- of-sale purchase, paid a bill, or sent or received money using a Web browser, text message, or app on a smartphone—are more likely than nonusers to be millennials or Generation Xers, live in metropolitan areas, and have bank accounts and college or ...
One of the most compelling advantages of online banking is the access to high-yield savings accounts. Unlike traditional brick-and-mortar banks, online banks have lower overhead costs, allowing them to offer higher interest rates on savings accounts.
More than half of Generation Z (57%), Millennials (60%) and Generation X (52%) use mobile banking apps most often, while a plurality of Baby Boomers most often utilize online banking (39%). One in six Baby Boomers (16%) visit bank branches the most often, while only 4% of Gen Z and Millennials prefer to visit a branch.
In the United States, the share of banked households using mobile banking as their primary access method reached 43.5 percent in 2021. When looking at mobile banking usage among different age groups, younger households used mobile banking more than older ones.
One of the most significant advantages of online and mobile banking is the convenience these services provide. Users can access their bank accounts, deposit checks, conduct transactions, and manage their finances from the comfort of their homes or on the go.
Which is better mobile banking or Internet Banking?
The biggest difference between the two is their functionality. Internet Banking allows you to conduct online transactions through your PC or laptop and an internet connection. On the other hand, mobile banking can be done with or without internet. Many banks nowadays have their mobile apps for mobile banking.
Some added advantages to banking on your phone include: Easy access to card manager features like changing your PIN, setting travel notifications and freezing/unfreezing your card. Deposit checks remotely. Send money to people you trust.
The benefits of mobile banking for users include time efficiency, the possibility to manage funds, transfer money, and detect frauds quickly. Also with the help of digital banking users have 24/7 access to their accounts (including the possibility to check balance) and reminders about bills payments, loans, etc.
A mobile bank account provides a yet-unprecedented level of convenience regarding where and when you do your banking. Whether you want to check your balance, manage your accounts, make or receive payments or even set money goals, mobile banking lets you do it from the palm of your hand.
Risks of mobile banking
The 2021 Nokia Threat Intelligence Report indicated that 50% of banking malware is targeted toward Android users, because Androids run on a fully open-source operating system. Cyberattacks triggered by hackers, unexpected glitches, and user mistakes can all undermine an app's security.
| Account | Forbes Advisor Rating | LEARN MORE |
|---|---|---|
| Bank of America Mobile Banking | 5.0 | Learn More |
| Chase Mobile | 5.0 | Learn More |
| Ally: Banking & Investing | 4.9 | Learn More |
| Discover® Mobile | 4.5 | Learn More |
The latest Chase Digital Banking Attitudes Study found that Millennials and Gen Z use mobile banking apps for budgeting, checking credit scores, and creating savings goals. The Mint app has shut down as of Jan. 1, 2024. For alternatives, check out CNBC Select's ranking of the best budgeting apps.
The risk is slightly higher for you. But that doesn't mean your data is automatically prone to being leaked. Incidences of moderate-to-high risk are rare for all mobile users. Individual vulnerabilities are something to keep an eye on, but not a reason to panic.
We asked U.S. consumers about "Most used mobile payments by brand" and found that "Apple Pay" takes the top spot, while "Microsoft Pay / Microsoft Wallet" is at the other end of the ranking. These results are based on a representative online survey conducted in 2023 among 2,418 consumers in the United States.
Members of Generation Z—the age group between 18 and 26 years old—are the most likely to adopt digital wallets as their primary payment method for shopping (91%) and traveling (86%).
What is the safest mobile payment service?
- Google Pay. Best for Android Users. Jump To Details. ...
- Cash App. Best for Buying Stocks and Bitcoin. ...
- PayPal. Best for Shopping Online. ...
- Zelle. Best for Instant Bank-to-Bank Transfers. ...
- Apple Pay. Best for Purchases iOS and Mac Users. ...
- Samsung Pay. Best for Contactless in-Store Purchases. ...
- Venmo. Best for Paying Friends.
- Security risks. While mobile banking offers security features to protect user information, there is still a risk of security breaches. ...
- Technical issues. ...
- Privacy concerns.
- Access your money anywhere.
- Convenience - all your banking services are all in one place.
- Lower fees.
- Higher interest rates (potentially)
- Faster money transfers.
- No paperwork, queuing or being put on hold on the phone.
- You Receive Large Paper Checks. We're not referring to those novelty oversize checks from the Publisher's Clearing House. ...
- You Like Having a Relationship with Your Bank. ...
- You Own a Small Business. ...
- We're Here on Earth to Fart Around. ...
- Depositing Cash and Buying Coins.
This statistic shows the share of population using digital banking in the United States from 2018 to 2022. In 2018, about 61 percent of Americans used digital banking, which is set to rise to 65.3 percent by 2022.
