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Study breaks down mobile banking demographics

September 16, 2013 by Dan Kramer — Senior Vice President, Marketing & Merchant Servic, SHAZAM

A recent study by the Pew Research Center indicates that more consumers are taking advantage of the simplicity, ease, and convenience of online and mobile banking.

The report found that 51 percent of American adults and 61 percent of Internet users useonline banking. It also discovered that 32 percent of adults have turned to their mobile devices for their banking needs.

The number of Internet banking users saw a jump of 5 percent since the same survey was conducted by Pew in 2010. But the more remarkable increase occurred in mobile banking over the same time period. In 2011, only 18 percent of adults used mobile banking.

The Pew study broke down the demographics of its respondents. Of those ages 18 to 29, 67 percent used online banking, and some 47 percent of the 65 and older group did.

Those who had a high school education or less, and those who made less than $30,000 a year were about 20 percentage points less likely to use online banking than more educated, higher-earning respondents.

This is interesting, given the fact that some segments of the underbanked population over-index on mobile device usage.

Similar demographic results were found among those who used mobile banking, with one exception. Unlike Internet banking, which whites were the most likely to use, nonwhites were more likely to use mobile banking than whites.

Also, the difference between young and older users increased dramatically, with 54 percent of those 18 to 29 saying they used mobile banking, while just 14 percent of respondents age 65 and older said they banked on their mobile device.

The Pew study's results are closely aligned with the results of a study conducted last year by the American Bankers Association. That study also found that mobile banking was on the rise.

Specifically, the ABA survey found that in 2012, 39 percent of U.S. adults preferred to bank online, up from 36 percent in 2010, and 6 percent preferred to bank on a mobile device, up from 3 percent in 2010.

These statistics should serve as a reminder to FIs that digital banking is here to stay; in fact, consumers are embracing it. Offering modern and competitive mobile services will be a key component for the growth plans of most every community FI in the country.

Read more about trends and statistics.

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