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Riding into the sunset: Banking by telephone and mail

December 12, 2013 by Dan Kramer — Senior Vice President, Marketing & Merchant Servic, SHAZAM

Mobile banking is becoming progressively more popular according to the American Bankers Association. In a survey of 1,000 U.S. consumers, mobile banking was preferred by 8 percent of customers. That's a 30 percent increase over a year ago.

The Internet is still the most popular banking method, but mobile has overtaken the telephone and U.S. mail in people's preference.

Ipsos Public Affairs, an independent market research company, carried out the ABA survey in July. The Internet has been the people's favorite way of conducting banking business for five consecutive years.

This year, 29 percent of customers said they preferred using the Internet to manage their bank accounts. Physically going to one's local branch is still preferred by 18 percent of individuals. Eleven percent named ATMs as their preferred method for managing their accounts.

"Digital and mobile banking is increasingly popular with today's consumers who want account management tools at their fingertips. As consumer banking preferences evolve, banks remain committed to offering a variety of choices that meet the needs of all customers," said Nessa Feddis, ABA's senior vice president and deputy chief counsel for Consumer Protection and Payments, in a recent press release.

Below is a breakdown of the methods survey participants use most often to manage their accounts, compared with 2012:

• Internet banking (PC/laptop) — 39 percent (no change)
• Branches — 18 percent (no change)
• ATM — 11 percent (-1 percent)
• Mobile banking — 8 percent (+2 percent)
• Mail — 7 percent (-1 percent)
• Telephone — 7 percent (-2 percent)
• Don't know — 11 percent (+3 percent)

"It's not surprising that branches remain the second most popular option. Many people prefer sitting down with someone to discuss complex transactions, like opening an account or applying for a home or business loan," said Feddis.

Until 2009, visiting the branch had been the most popular method for conducting banking business, followed by ATMs. Internet banking became the most popular that year with 25 percent of respondents naming online banking as their preferred account management method.

These numbers are a good reminder to community financial institutions to continue to offer their customers user-friendly, secure, efficient mobile banking apps.

As this account management method continues to grow in popularity, it will become increasingly important for FIs to position themselves as a trusted provider of mobile apps and a reliable source for mobile app use education.

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