FinTech News
Chase Survey Shows Digital Banking Continuing to Grow
For years, digital banking has been on the rise. Of course, the pandemic of the past year and a half has only served to accelerate this trend. Now, a new survey from Chase shows how consumers are not only using banking sites and apps along with digital payment services but may also be starting to use these outlets for other financial transactions as well.
Headlining the survey results was the fact that nearly three-quarters of respondents (73%) report using a mobile banking app at least once per week. That’s an increase of 8% from last year’s results. Moreover, 62% stated that their banking app was a “service they cannot live without,” marking a 7% YOY increase. The use of digital banking also grew across multiple generations, with Millennials, Gen X, and Baby Boomers all noting that they use digital banking channels more now than they did one year ago.
Also increasing in popularity are digital payment methods, such as Zelle. Chase’s survey found 93% of respondents had utilized at least one such platform in the past year. Interestingly, however, one-third of surveyed consumers report that they only started using these tools in the past six months. Regardless of age, the top reason cited for why consumers enjoyed using these services was the same, with two-thirds citing “convenience” as their biggest driver. Meanwhile, 57% said that they used digital payment methods because they were “fast” while 46% said that they “saved time.” Elsewhere, 79% also said that digital payment options make it easier to track and manage finances.
While banking websites and apps are often used to check balances, view transactions, and transfer funds, some banks are also expanding their list of services. For example, Chase maintains a travel portal where customers can book flights and hotels. Asked about whether or not they’d booked travel using their bank’s website or app, only 13% reported doing so. However, 34% of those who had yet to book travel via these methods stated that they’d at least be interested in doing so. Meanwhile, 74% of those who had booked travel with their banking site said they were highly likely to do so again.
Commenting on the results of the survey, Chase’s chief product officer Rohan Amin said, “This year, digital banking played an even bigger role in how consumers manage and track their finances on a daily basis. This new research highlights how consumer preferences are driving both the creation and adoption of new features that help consumers get more value out of their bank account or credit card.”
Overall, it’s really no surprise that a strong majority of consumers are regularly utilizing digital banking options. That said, it’s still impressive how overwhelmingly common these technologies and services now are. It’s also interesting to see how banks are leveraging the comfort and familiarity customers now have with digital services to offer additional options such as booking travel. While it seems that particular vertical has a ways to grow, it’s worth noting that Chase has been pushing their travel platform by rewarding several of their credit card customers with 5% back when they book using the portal. So, the real question then becomes, “what’s next?”
