News

Online banking: a shift to mobile platforms

A new study shows that consumers are beginning to rely more heavily on online banking as their digital 'branch' for account management and customer service.

June 12, 2014

Eighty-four percent of U.S. consumers now use a home computer or mobile device for banking activities and account management. In short, online banking is pervasive, according to the latest Insight Report from the CustomerMonitor survey series by Mercator Advisory Group.

“Online Banking: A Shift to Mobile Platforms” highlights trends in the use of online banking via computer and mobile platforms; communication methods with financial institutions; and use of personal financial management tools and alerts, online bill-payment methods, and electronic billing.

The report documents the demographics of Americans who most recently opened accounts. Additionally, it evaluates the account opening process online, and examines consumer channel preferences for performing bank transactions and receiving new information on products and services. 

The report reveals that:

• consumers are beginning to rely more heavily on online banking as their digital "branch" for account management and customer service;
• online and mobile banking are the fastest growing methods used by consumers to communicate with their financial institutions;
• more than half of survey participants prefer to learn about new financial products and services through a digital medium (53 percent); and
• of those consumers who prefer to be notified electronically, email is the most preferred of all methods (36 percent vs. 26 percent in person).

"Consumers want the convenience of having their digital 'branch' be available wherever they are, at any time, at home and by mobile, as more banking activities shift to mobile platforms," said Karen Augustine, manager of primary data services at Mercator and author of the report. 

Highlights of this Insight Report include:

• trending of: mobile Internet access methods; online and mobile banking activities; and primary mode of access for banking transactions;
• demographics of recent account openers; online account opening vs. other methods; satisfaction with online account opening; and need for additional assistance;
• shifts in: communication methods with financial institutions; and banking activities performed by computer and mobile platforms;
• use breakdown for: electronic payments; e-billing and financial management tools; tax preparation and personal financial management software.
• changes in customer use of personal finance management tools.

One of 17 exhibits in the 44-page report:

Survey findings were based on responses from 3,001 U.S. adults with banking relationships. Responses were collected in the CustomerMonitor survey series annual online banking and channels survey, conducted in November 2013.